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Home » What Is the Cost of a Picking Error if You're Delivering to Your Own Stores? Plenty!

What Is the Cost of a Picking Error if You're Delivering to Your Own Stores? Plenty!

July 1, 2010
Voxware

The two biggest contributors to the ROI proposition when considering a voice picking solution are accuracy and productivity. Productivity gains from 8 percent to 20 percent are possible and depend on other factors such as what picking method you are moving from and whether you are implementing process change (for instance, moving to multi-order picking).

With voice, improvements in order picking accuracy can be significant and levels of 99.9 percent (one error per thousand picks) and higher are usually achieved. However, the challenge is how to quantify that benefit. The million-dollar question is, "What is the cost of an error?"  Retailers often claim errors do not matter because "I am delivering to my own stores." Wrong!!

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    KEYWORDS Food and Beverage Global Logistics Inventory Planning/ Optimization Logistics RFID & Barcode Technology Warehouse Management Systems
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