Supply Chain Glossary

This supply chain glossary terms provides detailed explanations through our mini blogs. Continue reading to increase your vocabulary and gain insight into the supply chain visibility with these terms!

Overage, Shortage, and Damage Tracking

Last updated: December 23, 2025
Logistics Supply Chain
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OS&D tracking refers to the process of identifying and documenting differences in inventory during shipment or warehousing, whether it’s receiving more items than ordered (overage), fewer (shortage), or items that arrive damaged. Tracking OS&D ensures accurate records, reduces losses, and improves accountability throughout the supply chain.

How it Works in Logistics?

OS&D tracking begins at key checkpoints such as loading docks, warehouses, and delivery locations. During inspections, staff use handheld devices or software to scan and compare received goods with shipping documentation. If a mismatch is detected, it is logged as an overage, shortage, or damage event. Digital systems categorize the issue, alert relevant stakeholders, and initiate resolution workflows such as returns, claims, or restocking.

Key Features of OS&D Tracking

Automated Discrepancy Detection
Barcode scanners and digital logs compare shipment data instantly, flagging any variance between expected and received quantities.

Photo Documentation and Reporting
Staff can capture images of damaged goods and attach notes directly to digital reports, streamlining the claims process.

Integrated Claim Management
Links directly with freight carrier systems or customer service tools to handle compensation, reshipments, or dispute resolution quickly.

Benefits of OS&D Tracking

Reduced Inventory Loss
Accurate logging helps prevent shrinkage by catching discrepancies early and ensuring corrective action is taken promptly.

Improved Supplier Accountability
Detailed records of overages, shortages, or damages provide evidence to hold suppliers or carriers accountable for delivery issues.

Faster Resolution Times
With automated alerts and simplified documentation, issues can be resolved more efficiently, reducing operational delays.

Conclusion

Overage, Shortage, and Damage (OS&D) tracking plays a vital role in maintaining inventory accuracy and supply chain reliability. By catching discrepancies at the point of receipt and triggering fast response actions, companies can protect profitability, uphold service standards, and build stronger relationships with logistics partners and customers.