Distribution centers are losing an average of nearly $390,000 every year due to mis-picks, according to a study conducted by Everett, Wash.-based Intermec Inc. The study surveyed 250 supply chain and distribution managers across the United States, United Kingdom, France and Germany and discovered that the average mis-pick costs approximately $22. More than half of the surveyed companies reported a pick rate of less than 97 percent, and 19 percent said that they do not measure the costs of mis-picks in any form, suggesting that the accumulated losses to the supply chain might be even higher than reported. Yet, 47 percent of respondents named picking as a key area where cost savings could be achieved most easily. To do so, nearly three-quarters of managers said that increasing automation or new technologies would have the greatest impact on increasing profitability.
Despite the study’s findings, picking products using a paper list remains the most prevalent picking technique in warehouses, according to Jay Blinderman, director of product marketing for Vocollect, a business unit of Intermec Inc. However, in many cases, emerging picking technologies are giving it a run for its money due to their accuracy, efficiency and scalability, experts suggest.