Breakages

Breakages are the plural term for breakage, the damage or destruction of items during handling, processing, storage, transport, or use. The term is used across contexts to describe physical damage to goods as well as non-physical losses such as unredeemed value.

In manufacturing and logistics, breakages refer to damaged units that cannot be sold as new. They are tracked as a breakage rate, typically calculated as the number of broken units divided by total units handled. Causes include mishandling, inadequate packaging, vibration during transit, temperature fluctuations, supplier defects, or human error. Reducing breakages relies on robust packaging, clear handling procedures, staff training, quality control, automation, and optimized routing and storage.

In retail and financial accounting, breakage can describe revenue from unredeemed value such as vouchers, gift cards, or prepaid services. Entities estimate breakage based on historical redemption patterns and recognize income accordingly, within applicable accounting rules and consumer protection laws. Breakage expectations can influence pricing, cash flow forecasts, and regulatory reporting.

In hospitality or property contexts, guests or customers may cause breakages for which a liability is charged or recovered through deposits or insurance. Documentation of incidents supports claims and remediation.

Management and measurement involve data collection, audits, and loss-prevention programs. Tracking breakage rates helps identify weak points in packaging, handling, or service delivery and supports sustainability by reducing waste and replacement costs.