Enterprise -> Manufacturing
Released: 21st January 2013
Reading, January 21, 2013 – According to a study recently conducted by Intermec, Inc. (NYSE: IN), distribution centres are losing an average of nearly £242,000 per year due to mis-picks. With a new year bringing renewed pressure to boost efficiencies and drive costs down, the demands for faultless distribution processes have never been higher. Achieving productivity and accuracy goals is fundamental to improving profit margins, which is why more than half (59%) of managers are now turning to ‘The Perfect Order’ metric to identify areas for improvement.
The study, which surveyed 250 supply chain and distribution managers across the US, UK, France and Germany, found the average mis-pick costs approximately £14, with more than half (52%) of companies reporting a pick rate of less than 97%. A further 19 percent do not even measure the costs of mis-picks in any form, suggesting that the accumulated losses to the supply chain may be even higher.
Perhaps unsurprisingly, companies that have recently conducted a workflow process review found picking (47%) a key area where cost savings could most easily be achieved. For those using ‘The Perfect Order’ metric, opportunities for increased savings were clear, with complete shipments (43%) seen as the most profitable to the bottom line.
Improving profit margins in the distribution centre:
Technology in the workplace
Ian Snadden, VP EMEA at Intermec, said: “This research reaffirms just how crippling mis-picks are to businesses. If left unmanaged, businesses will continue to cause significant damage to overall revenues and performance. Faced with these losses, and in light of the cost savings that must be achieved across the distribution centre, failure to utilise the processes and tools that can make a difference is no longer an option.”
Intermec Inc. (NYSE:IN) is the workflow performance company. We design the leading data capture and information management solutions at the interface between mobile workers, assets, and customers. For more information about Intermec, visit www.intermec.com.
About the Research
The research sampled 250 senior supply chain managers at organisations of over 500 employees, spanning industries including retail, manufacturing, distribution, transport, chemicals, logistics, pharmaceuticals, wholesale and FMCG. The research was commissioned by Intermec and carried out by research company Vanson Bourne in October 2012.
Published by: IT Analysis Communications Ltd.
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