ShipCalm is committed to providing accurate and reliable warehousing and fulfillment services. While we take the utmost care in handling and managing your inventory, discrepancies, damages, or losses can occasionally occur. This policy outlines the procedures for addressing lost or damaged inventory and the process for submitting a claim.
I. Responsibility for Inventory Loss or Damage:
- Customer's Primary Responsibility & Insurance Requirement: As part of our service agreement, all customers are required to maintain their own comprehensive insurance coverage for their stored inventory. In the event of loss or damage, customers are expected to first pursue claims through their own insurance policies.
- ShipCalm's Limited Liability: ShipCalm's liability for lost or damaged inventory is strictly limited to the total service fees paid by the customer to ShipCalm related to the specific inventory in question during the period the loss or damage is deemed to have occurred. This limitation applies regardless of the cause of the loss or damage, including but not limited to negligence, unless otherwise mandated by applicable law.
- Loss Allowance: ShipCalm maintains a standard loss allowance of 0.1% calculated against the total volume of inventory received compared to the total volume of inventory adjusted out. This percentage is calculated across all SKUs for all time, regardless of the SKU size, weight, cost, MSRP, or any other factor, and is not allocated on a per SKU basis. Inventory discrepancies falling within this 0.1% allowance are considered within the normal course of operations and will not be subject to individual claims or compensation. This allowance accounts for minor discrepancies that can occur during the receiving, storage, and fulfillment processes. In certain industries, based on the given product that might be fragile in nature, ShipCalm reserves the right to designate a higher-than-typical loss allowance of up to 20%.
II. Reporting Lost or Damaged Inventory:
Customers are responsible for promptly identifying and reporting any suspected lost or damaged inventory. The following procedures must be followed:
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Initial Notification: Within 30 business days of discovering the discrepancy or damage, the customer must notify ShipCalm's designated contact person or department (e.g., Customer Support, Account Manager) via email at support@shipcalm.com. The initial notification should include:
- Account Name and Account Number.
- Date of discovery.
- Description of the missing or damaged item(s), including SKU, quantity, and any relevant identifying information (e.g., batch number).
- Details regarding the circumstances of the suspected loss or damage, if known.
- Any supporting documentation (e.g., photos of damage, packing slips showing discrepancies).
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Formal Claim Submission: Following the initial notification, if the customer believes the loss or damage exceeds the 0.1% loss allowance and wishes to pursue a claim against ShipCalm (after exhausting their own insurance options), a formal claim must be submitted in writing within 30 days of the initial notification. The formal claim must include:
- A completed Lost/Damaged Inventory Claim Form (available upon request from ShipCalm or clicking this downloadable: Inventory Loss Claim Form).
- Detailed description of the lost or damaged inventory, including SKU, quantity, cost per unit, and total value.
- Evidence demonstrating that the loss or damage occurred while the inventory was under ShipCalm's care and control. This may include:
- Copies of receiving documents.
- Copies of outgoing shipment documents.
- Internal inventory records.
- Photographic or video evidence of damage (if applicable).
- Documentation confirming that a claim has been filed with the customer's insurance provider (if applicable) and the outcome of that claim.
- Proof of the service fees paid to ShipCalm related to the inventory in question.
III. Claim Review and Resolution Process:
- Acknowledgement: Upon receipt of a complete formal claim, ShipCalm will acknowledge receipt within 7 business days.
- Investigation: ShipCalm will conduct a thorough investigation into the reported loss or damage. This investigation may involve reviewing internal records, warehouse footage, interviewing staff, and potentially coordinating with third-party carriers or other involved parties.
- Timeline for Resolution: Due to the nature of investigations, which may require working with third parties, the claim research and resolution process can take up to ninety (90) days from the date of receipt of a complete formal claim. ShipCalm will make reasonable efforts to provide updates to the customer during this period.
- Claim Outcome: Upon completion of the investigation, ShipCalm will communicate the outcome of the claim to the customer in writing.
- Claim Approval: If the claim is approved and the loss or damage is determined to be directly attributable to ShipCalm's gross negligence (beyond the standard loss allowance), ShipCalm's liability will be limited to the service fees paid by the customer related to the lost or damaged inventory, as outlined in Section I.
- Claim Denial: If the investigation determines that the loss or damage falls within the 0.1% loss allowance, was caused by factors outside of ShipCalm's direct control, or the customer has not provided sufficient evidence, the claim may be denied. The written communication will include the reasons for the denial.
IV. Important Considerations:
- Failure to adhere to the reporting timelines outlined in Section II may result in the denial of the claim.
- ShipCalm is not liable for losses or damages resulting from:
- Acts of God, natural disasters, or other force majeure events.
- Inherent defects or the nature of the goods themselves.
- Improper packaging or labeling by the customer.
- Losses or damages occurring while the inventory is in transit by a third-party carrier (unless ShipCalm was directly contracted for the transportation and the loss/damage occurred during that specific leg).
- Loss is within Loss Allowance
- Loss is determined to be of a record-keeping nature and not an actual physical loss of product
- Incorrect product being given to a 3rd party that is not returned by the 3rd party
- This Lost Inventory Policy is subject to the terms and conditions outlined in the customer's service agreement with ShipCalm. In the event of any conflict, the terms of the service agreement will prevail. Customers are reminded that maintaining comprehensive insurance for their stored inventory is a requirement of the service agreement with ShipCalm.
V. Contact Information:
For any questions regarding this Lost Inventory Policy or to initiate a claim, please contact:
ShipCalm Claiims Department
claims@shipcalm.com
ShipCalm values your business and is committed to resolving any inventory discrepancies in a fair and timely manner within the parameters of this policy.