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The true cost of a mispick is measured in service levels—and by a dwindling customer base when consumer and B2B buyers turn to sources that get orders right. Most organizations understand that mispicks can add up to big losses—in money, time, and labor—but the biggest bite comes from losing a customer due to service problems associated with slow deliveries, receipt of the wrong item, and the hassle of a return. In today’s fast-shipping world, where two-day (or faster) delivery has become the norm thanks to the likes of Amazon.com and Zappos.com , companies serving both consumers and business-to-business customers must meet higher-than-ever expectation levels or suffer the wrath of a dissatisfied customer. “Service is now the big issue,” says Steve Mulaik, Atlanta-based director with global supply chain management consulting firm Crimson & Co. “[A mispick] can add two days to an order’s processing time. This is huge in the cut-throat e-commerce world. This sort of thing ends up in complaints on Facebook and elsewhere that drive [customers] to sites that have better service.” The situation is putting pressure on distribution center leaders to improve accuracy in the picking process. The list of remedies is long and includes technology solutions, process changes, and new approaches to training DC workers. But before a DC can tackle any of that, managers and staff must understand what a mispick is, what it costs, and how to address the weak spots in their operation. MISPICKS: WHAT THEY ARE AND WHAT THEY’RE COSTING YOU A mispick occurs when the wrong item or wrong quantity of an item is picked, when an item is omitted, or when a damaged or mislabeled item makes its way into an order. Mispicks occur primarily through human error; a worker picks the wrong item, pulls from the wrong location, picks […]
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