Discover why logistics failures are often the hidden culprits behind DOAs and how simple adjustments to packaging and processes can immediately yield significant gains. Read how you can transform logistics from a blind spot into a strategic asset for your supply chain.
Summary of this article
Dead-on-Arrival (DOA) parts seem like a marginal problem at first glance. Only one to two percent of all spare parts arrive defective or damaged. Yet here lies a persistent pitfall: the financial and operational impact of DOAs is many times greater than the numbers suggest. Research conducted by Faes together with the University of Groningen shows that companies lose an average of over four percent of their spare parts turnover due to this problem.
In many organizations, the focus is on product quality and technical errors, while precisely the logistical causes remain structurally out of the picture. Repackaging, transport, storage and handling contribute significantly to DOAs in practice, but are rarely addressed thoroughly. This leads to a blind spot that costs companies unnecessary money and puts customer relations under pressure.
The question is not whether logistics plays a role in DOAs, but why this role is so often underestimated and what measures companies can take to break it.
DOA stands for Dead-on-Arrival: parts or products that turn out to be defective, damaged or unusable immediately upon delivery. These may include electronics that do not work, parts that are damaged in transit or products that show cosmetic damage that makes them unacceptable for use.
According to research, on average one to two percent of all spare parts are affected. That may seem like a small proportion, but the impact is greater than the numbers suggest. Each defective part causes additional costs for repair or replacement, often necessitates emergency transportation and leads to inventory shortages. Moreover, a DOA directly disrupts service processes and can damage customer relationships.
What these figures make especially clear is that DOAs are not occasional anomalies but a structural risk in the supply chain. The challenge lies in making the causes visible so that companies look beyond the quality of the product itself.
This research shows that logistics plays a much greater role in the occurrence of DOAs than is often assumed. In practice, problems frequently arise during activities that take place outside the manufacturer’s field of view. Repacking is one of the main causes: components that have been carefully packed in a controlled environment are opened and repacked further down the supply chain. Every additional handling step increases the risk of damage.
Transport and storage are also critical stages. Components often travel long distances via different carriers and transshipment points, exposing them to shocks, vibrations and changing climatic conditions. Insufficient protection or incorrectly selected packaging materials can quickly result in damage. Improper storage conditions, such as high humidity or stacking errors in the warehouse, can also cause DOAs.
The study demonstrates that relatively small process improvements can have a significant effect. In one of the cases examined, the DOA rate fell from 1.3% to 0.9% after adjustments were made to the logistics processes and packaging. On paper, this may appear to be a modest improvement, but in practice it means hundreds fewer defective components, substantially lower replacement and transportation costs, and an immediate improvement in customer satisfaction.
The changes focused primarily on two areas. First, repacking was drastically reduced. Whereas components had previously been unpacked and repacked several times by different parties, a strict no-repack policy was introduced. This significantly reduced the number of opportunities for damage to occur. Second, the packaging design was simplified and made more robust. Improved protection and fewer loose components inside the packaging reduced the risk of shock and pressure damage.
The result was not only a lower DOA rate, but also a more stable logistics process. Fewer urgent shipments were required, inventory could be managed more efficiently, and the service organisation gained greater control over reliability towards the customer. This case demonstrates that logistics is not merely a supporting condition, but a decisive factor in determining product quality upon arrival.
Although the research clearly shows that logistics processes have a major influence on the occurrence of DOAs, these causes are structurally underestimated in many organisations. One important reason is that responsibility for logistics is often fragmented. Manufacturers focus on product quality, while transport and storage are usually handled by external parties such as distributors and logistics service providers. As a result, damage that occurs in transit is not always made visible or correctly attributed.
A second factor is the lack of reliable data. In many registration systems, a large proportion of DOAs is classified as “unknown cause”. Without a clear link between damage, packaging type and logistics route, there is no insight into where things go wrong. Attention therefore automatically shifts towards product quality, because that is measurable and can be controlled internally.
Finally, perception also plays a role. Logistics is often regarded as a supporting function rather than a strategic part of quality assurance. As a result, the subject receives less attention at management level. Only when the costs of urgent transport, stock shortages and customer claims become visible does the realisation emerge that logistics involves more than simply moving components.
Structurally underestimating logistical causes has direct and measurable consequences. Financially, costs can rise quickly. The research shows that the total cost of a DOA can amount to more than twice the value of the component itself. This is because, in addition to damage to the product, repair costs, urgent transport costs and additional inventory pressure must also be taken into account. Companies that do not identify these costs separately often realise too late that DOAs are structurally eroding their margins.
Operationally, every DOA creates additional work and disruption. Service organisations are forced to switch to urgent deliveries in order to continue serving customers. This increases the pressure on logistics departments and creates inefficiencies in inventory management. When this happens regularly, a pattern of firefighting develops instead of stable process management.
Strategically, ignoring logistical causes may have the greatest impact of all. Every defective delivery damages customer confidence. Particularly in sectors where uptime and reliability are crucial, this may result in reputational damage and the loss of customers in the long term. Companies that continue to regard logistics as a secondary concern therefore risk not only higher costs, but also a structurally weaker market position.
The solution begins with recognising logistics as a strategic factor in reducing DOAs. This requires more than improving product quality alone; it involves redesigning processes throughout the entire supply chain. This research shows that relatively simple measures can already make a major difference.
A first step is to introduce a strict no-repack policy. Every time a component is repacked, the risk of damage increases. By fitting packaging with clear seals and making agreements with logistics partners, this risk can be significantly reduced. Improving packaging designs is also essential. Robust materials, shock-absorbing interiors and the elimination of unnecessary components provide greater stability during transport and storage.
Data also plays a crucial role. Systematically recording where and when damage occurs provides insight into the weak links in the supply chain. The use of telemetry, such as shock and tilt indicators, makes it possible to determine objectively whether damage occurred during transport or handling. This allows companies to implement targeted improvements and make contractual agreements with their logistics service providers.
Finally, a shift in performance indicators is required. Instead of measuring only the DOA rate, it is more effective to manage the total cost of DOAs as a percentage of revenue. This provides a more realistic picture of the impact and helps companies prioritise improvement measures more effectively.
Within the issue of DOAs, the key often lies in logistics, particularly where causes remain invisible or fragmented. As an independent packaging partner, Faes takes control of the entire packaging supply chain. This means that we do not only consider packaging and materials, but every link in the chain: from design and production to transport, storage, handling and return flows.
Our approach goes beyond limiting individual incidents. We systematically conduct root cause analyses to determine where DOAs occur within the supply chain and why. These insights allow us to actively drive improvements, for example by eliminating repacking entirely, introducing more robust packaging concepts or holding logistics service providers accountable for their performance.
Because Faes operates independently, we can objectively select the best solutions and partners, always in the customer’s interest. By taking control of the entire supply chain and continuously using data and root cause analyses to support improvements, we turn logistics from a blind spot into a powerful instrument for structurally reducing DOAs and increasing reliability towards the customer.
DOAs are not exceptions, but a structural risk that can cost companies millions annually. The study shows that logistical causes play a much larger role than is often thought. Repackaging, transport and storage are not just preconditions, but determining factors for product quality on arrival.
As long as logistics remains out of the picture, costs continue to pile up in the form of rush shipments, inefficient inventories and damaged customer relationships. The solution lies in putting logistics front and center, implementing clear processes and driving data and root cause analysis.
As an independent packaging partner, Faes takes control of the entire chain. In this way, we make logistics transparent, prevent causes from remaining invisible and focus on structural improvements. Thus logistics changes from a blind spot into a strategic lever that not only reduces DOAs, but also strengthens margins and reinforces customer relations.
The message is clear: Those who continue to underestimate logistics continue to pay. Those who put logistics first gain security, efficiency and confidence.
Thijs Canjels is Business Innovation Manager at Faes and specializes in packaging management and supply chain optimization. In his blogs, he shares insights on efficiency improvements, cost savings and the strategic role of packaging in modern supply chains.
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