Ullage
Ullage in literary term means loss of liquid due to seepage from a container. This term also has
a wide application in warehousing and logistics. The reasons for under delivery of orders are
-
Errors in stock keeping
Non receipt of order items due to unavailability
Damage of shipments
Counting Errors
Inaccuracy in the inventory management system
Pilferage
Monitoring of loading and unloading procedures .
Unsystematic line up of the inventory items in the warehouse
Ambiguity in manufacturing serial numbers
However as per contracts ullage allowances are provided by the supplier . The supplier does
not have to replace the items which have been damaged after providing the required
compensation as per agreement.
The accepted levels of ullage are below 1 % but some contracts provide compensation upto
10% ullage.
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