Improve Shipping Accuracy! (Part 4 of Four Simple Ways to Pay For a WMS)

Shipping accuracy to some companies is an oxymoron and to others a solid part of their business.  So what causes some to struggle and others to excel?  The accuracy of their pick and verification process.  Lets look a little closer.

I was talking with a prospect recently who shared with me that they shipped an average of 600 orders per day and 800 boxes.  He was very proud to tell me that they were 98.6% accurate on their shipping.  Now 98.6% sounds pretty good (especially in a busy disorganized paper driven warehouse) when you think of the fact that they ship 600 orders per day right.  I pointed out to him that means that about 8 orders go out wrong every day.  Industry statistics show it costs $200.00  to fix each mis-shipped order.  So if you do the math that’s $1600.00 per day for this prospect to cover the cost of their mistakes.  If you look at that over the course of one year the total is $83,200.  That’s a Problem.

 

A WMS will virtually eliminate the potential for making these mistakes.  By providing an accurate way to pick orders by scanning the barcodes and verifying the product  being picked is correct you gain tremendous accuracy.  By using a WMS to consolidate orders you can send fewer boxes and save shipping costs. By creating efficient pick paths and picking processes accuracy is increased dramatically.  Many companies find they can eliminate costly, time stealing check processes once a WMS has been implementing without increasing mistakes.  If the shipping process is integrated into the WMS shipping accuracy is improved and much more efficient.

Eliminating mistakes that go out the door to your customers will offset a large portion of the initial investment in a warehouse Management system like Accellos One Warehouse.  To learn more about how A1W can help a business be more profitable check out our dedicated website http://www.warehouse-management-systems-us.com/wp-admin/post-new.php.

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