One of the best ways to improve productivity is to get every job done right the first time.1 The cost of errors in warehousing is high; the cost of an order picking error, for example, has been estimated as ranging from $10.00 to $30.00 for each occurrence. These costs are derived by considering the writeoffs of undiscovered warehouse shortages caused by picking mistakes, the cost of handling returns, cost of supplemental shipment to replace shortages, cost of reversing errors caused by substitution of the wrong product, correspondence to handle credits and adjustments and, finally, the almost unmeasurable cost of customer dissatisfaction or loss of confidence.
KeywordsOrder Number Order Error Order Picking Quantity Column Item Identification
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- 1.Much of this chapter is based on an article written for Warehousing and Physical Distribution Productivity Report by the late W. B.“Bud” Semco, President, Semco, Sweet & Mayers, Inc., Los Angeles. ©Marketing Publications, Inc., Silver Spring, MD. Also from Vol. 3, No. 3 of Warehousing Forum ©The Ackerman Company.Google Scholar