When it comes to transportation and logistics within the supply chain, ensuring deliveries are on time and in full is crucial to minimizing overages, shortages, and damages (OS&D), which are an unfortunate but unavoidable part of doing business. Shipping that is temperature-controlled can further complicate these issues, but careful management can help mitigate potential disruptions. Chargebacks can be a major result of these issues, affecting operations and finances. What matters most is how they’re handled, especially when it comes to filing claims. The efficient management of chargebacks is vital. That’s why having a dedicated OS&D department at your 3PL provider isn’t just a bonus—it’s essential.
What Is OS&D?
OS&D stands for Overages, Shortages, and Damages—terms that cover a wide range of issues during transportation and handling of freight. At FST Logistics, we don’t just deal with claims after the fact, including handling chargebacks effectively. Instead, we address potential claims before they become a problem, aligning our efforts to ensure deliveries are full and on time.
The OS&D team is the last line of defense before freight goes out the door. They’re responsible for risk management, root cause investigation, and proactive problem solving. These efforts ensure your freight, especially if temperature-controlled, arrives safely, securely, and as expected on time in full.
Why It Matters: Proactive Protection of Your Freight
Our OS&D process doesn’t start with a claim—it starts with prevention. The team works closely with inbound freight checks, new customer onboarding, and tagging potentially sensitive freight. This flags risk in advance. In temperature-controlled environments, they monitor both warehouse and trailer temps to ensure products stay within range, delivering them as full and on time.
From seasonal temperature shifts to recurring product issues, the team identifies trends and acts quickly. By managing temperature-controlled shipments carefully, being proactive, not reactive, keeps freight safe and delivery timelines intact, reducing chargebacks.
Saving Customers Money, Time, and Stress
The OS&D team does more than just respond to issues—they prevent loss and save customers money. For instance, the team helped decline a $400,000 claim by uncovering a lack of documentation. Their management of chargebacks is a key part of their success. They investigate situations thoroughly. Their knowledge, diligence, and access to real-time data can make the difference between a costly claim and a successful delivery in full, on time.
They also help reduce repeat shortages and misloads, ensuring customers don’t have to spend time or money reshipping freight. In emergencies, the team arranges alternate shipments and updates purchase orders so product can still hit the shelves.
Building Trust and Delivering Results
Customers often don’t realize how much work goes on behind the scenes to protect their freight. Our OS&D team serves as the dedicated “freight watchers” who act with accountability, urgency, and care. Managing chargebacks effectively is part of building this trust. They communicate regularly, offer transparency, and work directly with warehouse staff, operations, accounting, and carriers to solve problems fast.
By focusing on on-time, in-full (OTIF) deliveries and product integrity, the OS&D department directly contributes to customer satisfaction and retention. Managing complex situations, such as those involving temperature-controlled freight, builds lasting credibility with customers.
Why Every 3PL Should Have a Team Like This
In industries like food and beverage, the need for an experienced OS&D team isn’t optional. With evolving regulations from the FDA and programs like FSMA, HACCP freight handling must meet strict safety and traceability standards. A 3PL partner without a clear OS&D process may put your product—and your brand—at risk.
As our customer base grows, the OS&D team continues to adapt. They track KPIs like damage frequency, temp deviations, and carrier compliance, crucial for temperature-controlled logistics, which are vital in managing chargebacks. Their work maintains delivery integrity and meets narrow delivery windows without cutting corners, ensuring shipments are received full and timely.
Choosing a 3PL with a dedicated OS&D department means choosing reliability, accountability, and long-term savings. It’s about more than fixing problems—it’s about preventing them, protecting your freight, including temperature-controlled shipments, and strengthening your supply chain from the inside out, guaranteeing deliveries in full and on time.
