Cutting the Damage Rate by 93% with Full Inspection | Meito Inc. Case Study
A Full-Inspection System That Cut Damage and Mis-Shipment Rates from 0.3% to 0.02% per Month
Process Diagram — 4-Stage Full-Inspection Line for Cosmetics
Four stages of visual inspection from receiving to shipping cut the damage rate by 93%
Project Overview
For a client operating a cosmetics EC business, product damage and label mismatches were critical issues directly tied to the risk of a backlash on social media. The previously contracted logistics provider had an average monthly damage rate of 0.3% (equivalent to about 240 items per month), driving up the costs of customer support handling and return re-shipments.
The Client's Challenges
- Of 80,000 units shipped monthly, a high damage rate of 0.3% (240 items per month)
- Risk of social-media backlash from posts about damaged products
- Enormous workload for customer support handling returns
- Round-trip shipping costs for return re-shipments squeezing profits
Our Proposal & Response
Full Inspection × Dedicated Protective Packaging on Meito 3PL's Cosmetics-Specialized Line
We established a dedicated cosmetics picking and inspection line at Meito's Osaka Center. Before shipping, every product undergoes a four-stage visual check covering label match, cap tightness, exterior damage, and the presence of accessories. In addition, we standardized dedicated packaging that combines air-cap cushioning, corner guards, and PE protective material tailored to cosmetics bottles.
- Full four-stage visual inspection (label / tightness / exterior / accessories)
- Cosmetics-specific air-cap and corner-guard packaging
- A dedicated team of 12 inspection staff achieving 99.98% inspection accuracy
- In the rare event of damage, prompt re-shipment backed by Meito's insurance
Results
| Item | Before | After | |
|---|---|---|---|
| Damage Rate | 0.3% (240 items/month) | → | 0.02% (16 items/month) |
| Inspection Accuracy | 99.7% | → | 99.98% |
| Customer Support Workload | 80 hours/month | → | 8 hours/month |
| Return Costs | 650,000 yen/month | → | 50,000 yen/month |
Client Testimonial
With cosmetics, "the condition on arrival" directly drives repeat purchase rates. Since switching to Meito, we've seen a surge in reviews on social media praising "the sense of luxury the moment it arrives."