What is OS&D (Over, Short or Damaged)?

OS&D stands for over, short, and damaged and are shipping variances that refer to the condition of the cargo and the final quantity of goods that was received by the consignee. The term "over" refers to overages, "short" refers to shortages, and "damaged" to cargo damages. This can happen during the manufacturing process, while the product is in transit or when it is being stored at a warehouse.

Why does OS&D might occur?

If a manufacturer produces too many of a certain item, those extra items would be considered overstock. If a product is damaged during shipping, it would be considered damaged goods.

And if a retailer can't find an item that was supposed to be in stock, it's considered an out-of-stock situation.

OS&D can cause problems for businesses because it can lead to lost revenue, higher costs, and frustrated customers. In case that material or product received by the customer/recipient is damaged, over supplied or under supplied in quantity in comparison to the quantity specified in the purchase order the recipient will lodge a complaint with the supplier. In case of damaged goods a material damage report has to be sent to the supplier.