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By: In: WarehouseOS On: Mar 10, 2017

Avoiding Costly Mispicks Possible with Improved Technology

Avoiding Costly Mispicks Possible with Improved Technology

Mispicks are extremely costly. Even when one incorrect SKU is shipped in the B-to-C (Business to Consumer) e-commerce space, the corrective action often involves reshipping using costly overnight delivery services, to keep the customer happy. A mispick occurs when the customer does not receive exactly what they ordered. This can occur by selecting alternative product or missing ordered merchandise.

Avoiding mispicks is critical if outsourcing order fulfillment, according to Tim Hoj with WarehouseOS®. Hoj noted that, “Businesses large and small are outsourcing their order fulfillment requirements and successful outsourcing can actually play a very significant role in helping keep tabs on operational costs. It is crucial to choose a drop shipping wholesaler with care. Dealing with unprofessional companies can have a negative impact on relationships with customers, especially avoiding product mispicks.”

Even more costly is when new customers have a bad experience (a mispicked product), their likelihood of reordering drops as much as 80%. The cost of customer acquisition is often very high for smaller new e-commerce companies. Keeping those newly acquired customers happy and reordering is essential to growth and success.

If outsourcing to external warehousing, Hoj recommends checking the provider’s warehousing capabilities. If the company does not have sufficient square-footage, it simply means that they will not be able to meet inventory needs. If looking to expand business, ask the company about future growth in terms of space availability and the timelines for the same. Understand what ordering methods the company processes. Check on the start to finish order delivery process. A well-established company will have a documented process. Check how the company handles outages and recognize that location is all-important. The company chosen must be able to deliver products to customers with accuracy and promptness.

Whether internal or external, the importance of sequencing in warehouses cannot be over-estimated. One aspect of warehousing that is readily overlooked is the order in which tasks are performed. In many warehouses, the sequence is dictated by tradition, or the attitude that “we have always done it that way.” Often, the sequence is fine and should not be changed. In many others, however, a change in the order in which things are done can have a material effect on warehouse operations. A diagnostic examination of warehouse operations should include the consideration of five questions:

  • Who does this job?
  • Where is this job done?
  • How is the task performed?
  • When is it performed?
  • Why is it done that way?

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