White Paper: Calculating the True Cost of a Mispick

Calculating the True Cost of a Mispick
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Presented by:
Kardex Remstar

December 2017

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Most order fulfillment operations utilizing operators to manually select required products to fill a customer order have experienced picking errors. That's because humans are prone to making mistakes.

Picking involves much more than grabbing an item off a static storage rack or shelf. In the typical manual distribution center, picking means an operator receives a paper list of instructions about what to pick and where, travels to the correct storage location, locates the correct item within the storage location, refers to the paper pick list to determine the number of items required from that pick face, picks the items, confirms the pick by marking the paper, then delivers the items for packing.

All of those steps are fraught with potential error. Factor in increasing fatigue as an operator walks through a warehouse again and again throughout a shift, and the typically less-than-optimal lighting in more facilities, and it's easy to see why picking mistakes happen.

While most operations understand mistakes will happen, very few have taken the time to calculate the true cost of those mispicks, and how they impact the bottom line. This white paper outlines a calculation for estimating the true cost of mispicks in order fulfillment to an operation. It also presents technology solutions to improve pick accuracy, and shares a calculation for determining the savings they can deliver.

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