A systematic process for documenting and managing inventory discrepancies that occur during receiving, storage, or shipping operations when goods don’t match their accompanying documentation. This encompasses items that arrive damaged, in incorrect quantities, or are completely missing from expected shipments.
OS&D procedures are critical for maintaining inventory accuracy and protecting against financial losses. When discrepancies are identified, warehouse staff must immediately document the issue, photograph damage when applicable, and initiate corrective actions such as carrier claims or supplier notifications. Modern WMS platforms automate much of this process by flagging discrepancies during receiving scans and generating standardized reports.
For example, if a shipment shows 100 units on the packing slip but only 95 undamaged units are received, the system would automatically create an OS&D record for the 5 missing/damaged items. This ensures proper accountability, enables timely resolution with carriers or suppliers, and maintains accurate inventory levels for downstream operations.
