Picking errors account for 1 to 3 percent of all shipments. That doesn’t sound like much, but when you add up all the costs, you realize that your bottom line takes a sizable hit every time a customer calls to report a mistake. What’s your average order amount? $50? $1,000? Add that to the costs of reshipping items and the loss of customer trust and you’ve got a bigger problem than you originally thought.
So what causes these errors in the first place? Usually it’s simple human error. Someone picks an item from the wrong bin, or tosses a return into the wrong slot. The errors multiply until you’ve got a higher-than-usual return rate and a lot of hemorrhage in your profits.
Warehouse automation is a great way to reduce picking errors. Tools directly connected to your ERP also help you keep a handle on the costs of returns.
Warehouse solutions like Scanco Enterprise, which connects to Sage ERP products, reduces picking errors by making it easy to scan items as they move into and out of the warehouse. A quick scan can double check lot or bin number location and ensure that packing slips and picked items match before shipping.
If you’d like to know more about Sage 100 warehouse products and other great warehouse automation tools for your warehouse, contact Scanco Software. We are dedicated to warehouse improvements through innovation and automation. We love helping you find ways to be profitable and efficient! Contact us today.