In warehouse & manufacturing operations, things get broken. They break in a number of ways, and it’s expensive. You’ve probably seen product broken or damaged in amazing and improbable ways if you’ve been in this business for any length of time.
We had a client once buy a bunch of mismatched, used industrial shelving (not from us), only to see it collapse and dump thousands of tiny aircraft components on the floor. It had to be swept up and discarded since it was all mixed up and visually impossible to sort.
Those are extraordinary examples, but everyday inventory damage that cost “only” a few hundred or thousand dollars can savage your bottom line.