FPC has researched the costs involved in Dead on Arrival items, in cooperation with Prof. Dr. Walther Ploos van Amstel. In the course of a seminar organised by FPC, it appeared that costs associated with DOAs could easily amount to 2 to 5 percent of turnover. While this doesn’t appear to be much, the fact that large, hi-tech manufacturers in The Netherlands turn over billions per year means that these losses are measured in millions.
The cost of DOAs is often underestimated. And while DOAs rank high on the annoyance scale, they are often not high on the priority list of manufacturers. This despite the fact that solving the problem could lead to a 25% increase in profit. In the recently published research, Prof. Dr. Walther Ploos van Amstel writes, “addressing DOAs can easily lead to 25% more profit. Can anyone be insensitive to this opportunity?”
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