Mispicks cost individual warehouses $389,000 per year

A single mispick costs a warehouse $22.52, and over the course of a year, mispicks in a single distribution center add up to $389,000 on average, according to a new report from Intermec, "Unlocking Hidden Costs." The study canvassed 250 supply chain, warehouse, and distribution managers across the United States, the United Kingdom, France, and Germany.

Intermec said that achieving high picking accuracy rates is fundamental to improving profit margins. Some 47 percent of study participants said that picking was a key area where cost savings could easily be achieved. The company noted that 59 percent of managers are turning to the "perfect order" metric to gauge picking accuracy and identify areas for improvement.