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Labor Hours are a Hidden Cost of Incorrect Orders

Sending out incorrect orders has a ripple effect that can end up costing a business a lot of money. In addition the cost of the item and the shipping cost that a business has to pay to send the item, there is the cost of the labor hours that go into packing and shipping the item. A business that sends out the wrong item will end up paying double the labor hours for that item because the order will essentially have to be filled twice.

When an incorrect order is sent to a customer, the business is paying for an employee to find the item, pick the item, box and pack the item, and ship the item. Then the process will need to be repeated with the correct item and the new order sent out which means another shipping fee. If the customer returns the original item, which they are not required to do, an employee will need to unpack that item, check it for damage, clean it and make sure it’s ready to be resold, then return it to the inventory.

It is much more cost effective to make sure that the right order is sent the first time.

How Automated Warehouse Management Reduces Labor Costs

The best way to be sure that the customer is getting the correct item is to implement an automated warehouse management system at your business. An automated warehouse management system can give you real-time updates about the status of any item so that you will know exactly how many items are in your warehouse and how many are going out on any particular day. You will also get alerts that will notify you if there is a problem anywhere along the supply chain of getting the item shipped out.

Using an automated warehouse management system to run things will leave employees free to do more important tasks that will deliver a better return on investment. The money and brand reputation that you are able to save will outweigh the cost of implementing the warehouse management system.

If you want to make money and not increase your operating expenses it just makes sense to switch to an automated management system.

Automated Warehouse Management System for Macola and SAP Business One

Ready to get started with an automated warehouse management system? WiSys Agility solutions have been designed to achieve efficient Warehouse Management, Supply Chain Management and Inventory Management. Contact us to learn more.