Who Handles OSD (Over, Short, Damaged) Incidents? Key Roles Explained

Who is involved when OSD (Over, Short, Damaged) issues arise?

In logistics and warehousing, OSD events are collaborative problems that require coordination across many roles. Understanding who takes responsibility at each step helps organizations respond quickly, assign liability, and reduce recurrence.

At the most immediate level, warehouse receiving staff and their supervisors are central to identifying OSD. These team members perform physical counts, inspect packaging and product condition, record discrepancies, and initiate the first incident reports. Their actions determine whether an issue becomes a formal claim and how much evidence is captured for carriers or vendors.

Carriers and drivers are often the next critical group. Because goods frequently sustain damage or miscounts during transit or during loading/unloading, carrier staff are responsible for following proper handling procedures and for accurately reporting any visible damage on delivery documents. Many claim disputes hinge on whether the carrier’s proof-of-delivery paperwork documented damage at handover.

Suppliers and vendors are also key actors. When goods arrive over or short of the expected quantity, or arrive damaged, suppliers may be responsible for investigating packing, palletization, or documentation mistakes at their facility. They are typically involved in credit, replacement shipments, and corrective actions to prevent recurrence.

Quality control (QC) teams or product inspection crews have a role in assessing damage severity, determining salvageability, and deciding whether items can be returned to stock, repaired, or scrapped. QC teams often provide the technical evaluation that supports financial claims or inventory adjustments.

Inventory control and warehouse management system (WMS) administrators update records after an OSD is verified. Accurate, timely system updates preserve inventory accuracy and trigger downstream processes like replenishment or billing adjustments. These staff also generate reports that help management analyze trends and root causes.

Logistics managers and operations leaders coordinate responses, negotiate with carriers and suppliers, and authorize claim submissions. They set incident handling policies, determine when to escalate issues to senior management, and ensure customer commitments (such as backorders) are managed promptly.

Finance and accounting teams are involved when there are monetary implications: issuing credits, processing vendor chargebacks, applying inventory write-offs, and tracking claims recoveries. Their role ensures financial books reflect true inventory and cost impacts of OSD events.

Customer service and sales teams often manage the external-facing side — informing customers about shortages or damages, arranging replacements, and handling refunds. Their responsiveness directly affects customer satisfaction, so they need clear processes and up-to-date information from operations.

Insurance providers and risk managers become relevant for larger claims or repeated damage occurrences. They assess coverage, determine whether a claim meets policy terms, and may require specific documentation or inspections before authorizing compensation.

Finally, auditors and compliance officers may be brought in for recurring or high-value OSDs to ensure governance standards are met and that root causes are properly documented. Their independent review can recommend changes to internal controls and record-keeping procedures.

Common cross-functional responsibilities that cut across these roles include:

• Documenting incidents with photos, counts, and time-stamped records.
• Following agreed timelines and forms for filing claims with carriers or suppliers.
• Communicating clearly with customers when OSD affects order fulfillment.
• Participating in root-cause analysis to fix repeat issues.
• Maintaining accurate WMS records to reflect any inventory adjustments.

Real-world example

A retail distribution center receives multiple pallets from a carrier. Warehouse receivers note several pallets with punctures and missing boxes. The receiving supervisor documents photos, notes shortage counts on the delivery receipt, and tags the affected stock. The logistics manager files a claim with the carrier using the documentation. Meanwhile, the supplier is contacted to confirm whether order quantities were correct at origin. Finance records a pending inventory adjustment until the claim is resolved. Customer service proactively informs any impacted customers and arranges partial shipments if needed.

Best practices for defining who does what

• Create a clear OSD escalation matrix that lists primary and backup contacts by role.
• Standardize documentation templates and require photographic evidence for damage claims.
• Train receiving teams on consistent inspection and notation practices (including marking deliveries "DAMAGED" on proof-of-delivery where applicable).
• Set SLAs for reporting OSD events internally and to external parties (carriers, suppliers) to preserve claim rights.
• Hold cross-functional reviews for repeated OSD types to assign long-term corrective actions.

In short, OSD incidents are not the responsibility of a single person; they span operations, carriers, suppliers, quality, finance, and customer-facing teams. Clear role definitions, documented processes, and collaborative problem-solving turn OSD events from painful interruptions into manageable operational improvements.