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Accuracy in Distribution Can Cost You Millions

by Travis Baker

accuracy in distribuiton

Accuracy in distribution is a major pain point for some companies. So how accurate is the picking in your distribution center? In a retail distribution center a 3% error rate can cost you from $650,000 to 3 million dollars.  Every year.

So are you still thinking that your 97% accuracy rate is good? Probably not.

So the question is how do you increase accuracy in distribution?

The best way might be to take a hard look at the ROI in automation.  Human beings make mistakes, and you can mitigate those with correct application of automation. In fact, we believe that automation can solve a lot of the pain points in distribution.  We refer to those pain points as SALT (Space Accuracy, Labor and Throughput) 

However, bear in mind that automation is not a magic bullet for the distribution center. You need careful analysis of your supply chain, SKU base and future plans.

If you need some help with analyzing your distribution center and seeing how you might be able to improve accuracy or any other of your pain points feel free to give us a call at +1 (704) 469-9982 or +1 (858) 206-2615 or email us here.

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Filed Under: Accuracy, S.A.L.T. Principle

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