Automate OS&D Management to Protect Profits & Customer Relationships 

• Automating Overages, Shortages and Damages (OS&D) management reduces costly errors and manual effort by enabling real-time reporting, barcode scanning, and streamlined workflows. 
• Foodservice distributors using digital proof-of-delivery (POD) solutions see major benefits, including faster invoicing, improved accuracy, and reduced inventory loss. 
• OS&D issues can lead to lost revenue, delayed cash flow, and customer churn if not managed proactively. 
• Solutions that integrate with warehouse, transportation and enterprise resource planning (ERP) systems create end-to-end visibility across operations. 

In foodservice distribution speed, accuracy, and freshness are everything. Even the smallest mistakes can have big consequences. Yet many companies still overlook one of the most persistent sources of margin erosion: overages, shortages, and damages claims.

Delivery discrepancies are more than a paperwork problem. They’re a silent drain on profits, leading to courtesy credits, delayed cashflow and lost inventory. They’re also a key reason customers turn to competitors. 

Luckily, you can combat these discrepancies: leading distributors are transforming OS&D from a headache into an opportunity by embracing automation. 

If you’re still managing OS&D claims through manual logs, paper invoices, or phone calls between drivers and dispatch, you’re likely feeling the pain in multiple places: 

• Lost inventory from unrecorded overages or deliveries to the wrong location. 
• Revenue leakage from courtesy credits issued due to a lack of proof. 
• Delayed cash flow caused by inaccurate or incomplete invoices. 
• Wasted time spent on back-office data entry and driver redeliveries.  
• Frustrated customers who receive the wrong products or wait too long for replacements. 

“OS&D issues don’t just cause short-term delivery disruptions,” explains Ryan Callahan, Senior Sales Executive at Descartes. “They trigger a chain reaction—operational delays, invoice disputes, customer churn, and higher labor costs. Without visibility and real-time data, you’re essentially flying blind.” 

Manual OS&D tracking methods are slow, inconsistent, and error prone. Drivers and warehouses may follow different processes. Notes might be illegible. Timelines get blurry.  

The result? Disputes, delays, and costly operational inefficiencies from making multiple trips. 

And when perishable food is involved, those delays can lead to more spoilage, rejected items, and loss of customer trust. 

Forward-thinking foodservice distributors are turning to digital solutions that digitize OS&D tracking and integrate it across delivery, warehouse, and customer service workflows. 

Here’s what modern OS&D management looks like in action: 

Mobile apps let drivers document discrepancies at the point of delivery—complete with photos, timestamps, and notes. Real-time visibility reduces miscommunication and enables instant response.  

But more critically, advanced solutions scan at the case level using mobile devices. This ensures that the right product reaches the right customer. 

Most shorts occur because a warehouse failed to load an item or because a driver mistakenly believes that all ordered cases were delivered. Overage errors happen when a customer receives extra inventory, creating loss for one customer and requiring costly credits for another. 

Case in point: US Foods, one of the largest foodservice distributors in the U.S., equips its drivers with mobile devices to manage OS&D in real time. Drivers can capture delivery issues immediately and generate updated invoices onthe spot—minimizing disputes and eliminating the need for cumbersome paperwork.

Barcode scanning confirms what’s been delivered and what hasn’t, reducing human error. That means you can invoice faster—and more accurately—without relying on manual markups and guesswork. 

US Foods uses integrated barcode scanning at every touchpoint—loading, delivery, and customer returns—to ensure every item is accounted for. This has reduced costly OS&D issues and dramatically improved order accuracy. 

“We’ve created a new way of servicing our customers to make it as easy as possible for them to understand their adjustments, have a clean invoice, and avoid additional documentation.”
- Sr. Director, IT Supply Chain Systems,  US Foods 

Automation connects your warehouse, drivers, and back-office teams through seamless integration with your warehouse management system (WMS), transportation management system (TMS) and ERP solutions. OS&D issues are visible, trackable, and manageable across the entire organization. 

Speed matters in customer service. With automated OS&D tracking, teams can issue credits or send replacements quickly, without waiting on driver paperwork or manual entry. 

Every redelivery consumes additional truck mileage, fuel, and driver hours. Worse, it displaces other customers who could have been serviced on that route, lowering both operational efficiency and profitability. Preventing and mitigating shortages and overages is essential to minimizing this financial drain. 

Digital systems help you spot recurring OS&D trends—damaged packaging from a particular supplier, missed items on a specific route—and act on them. 

Automated tracking generates verifiable, time-stamped records that support the Food Safety Modernization Act (FSMA) and other food safety regulations. That’s critical when dealing with rejected perishables or damaged packaging. 

While specific outcomes can vary, foodservice distributors that implement automated proof of delivery and OS&D tracking systems often realize significant savings across several operational areas: 

• Reduced credits, inventory loss, and customer churn. 
• Lower rework and redelivery costs. 
• Fewer customer complaints and reduced churn. 
• Faster invoicing and improved cash flow. 
• Less administrative overhead and fewer manual corrections. 

By addressing discrepancies in real-time, companies strengthen cash flow, reduce waste, and enhance customer satisfaction—key drivers of long-term profitability. 

Not all systems are created equally. Look for: 

• Mobile apps with photo capture, barcode scanning, and note entry. 
• Cloud-based platforms accessible by customer service, warehouse, and finance teams. 
• Integration with your existing WMS, TMS, and ERP. 
• Analytics and reporting for trend detection and root-cause analysis. 
• Automated workflows that can be customized to trigger alerts, credits, or restocking tasks. 

OS&Ds don’t just affect individual deliveries—they threaten profitability, strain customer relationships, and consume valuable resources across your operation. By adopting a proactive, automated approach to OS&D management, foodservice distributors can protect margins, increase invoice accuracy, and deliver the level of service customers expect. 

Descartes offers a mobile proof-of-delivery solution built specifically for the foodservice industry, designed to help you modernize delivery execution and eliminate manual OS&D bottlenecks with features such as: 

• Electronic documentation and clean invoicing: Drivers can capture signatures, photos, and notes, and automatically generate updated, real-time clean invoices based on actual deliveries—eliminating manual corrections and accelerating cash flow. 
• Real-time tracking and notifications: With GPS-enabled visibility, dispatchers and customer service teams can proactively manage deliveries and communicate updates as they happen. Automated notifications keep customers informed from the moment an order is created, through the final mile, and after completion—using real-time status updates and driver geolocation triggers to enhance the delivery experience. 

• Integrated OS&D management: Overages, shortages, and damaged goods are documented at the point of delivery, ensuring faster resolution and fewer disputes. 

If you’re seeking the best foodservice distribution software, contact a solution expert today to learn how we can help you improve operational efficiency and build a more resilient, customer-focused delivery network.