can put a dollar amount on the cost of a
mispick. In the half that haven’t done so,
they have a general idea of the elements
and realize the severity of the issue. And
there are a number of them that don’t
understand the cost associated with it [at
all] … For some reason, they may shy away
from the investment needed to correct the
problem.”
Those reasons often include the high cost
of new technology solutions or upgrades,
and the time and training involved in devel-
oping new picking processes or redesigning
existing ones. Gerbitz and others say DC
leaders should look past such hurdles to
find affordable and creative ways to address
the problem. They also point out that, for
some firms, a hefty high-tech investment
will not only alleviate the pain of mispicks
but may also yield game-changing pro-
ductivity improvements throughout the
DC. In either case, improving the picking
process can mean the difference between
a satisfied and dissastisfied customer base.
“Customers have zero appetite for
mispicks and inaccurate orders,” says Doug
Card, director, systems and special applications, Americas, for Kardex Remstar, a
Westbrook, Maine-based manufacturer of
automated storage and retrieval systems.
“Almost everyone has multiple sources
they can get something from, so if you ship
someone the wrong product, if it’s not a
perfect experience, they will go somewhere
else.”
MITIGATION STRATEGIES: REDUCING
ERRORS, IMPROVING ACCURACY
There are three primary ways to mitigate
the risk of mispicks: technology, design, and
training. Technology is often the first thing
that comes to mind, with solutions that
range from simple bar-code scanners and
radio-frequency identification (RFID) systems to more advanced voice- and light-directed picking technologies. Such solutions
rank high because they make an impact.
“The more you automate, the more
accuracy you are typically going to see,”
says Gerbitz. “On the flip side, the more
you [automate], the higher the cost.”
As an example of high-tech automation,
he points to the light-directed order ful-
fillment solutions Lightning Pick provides.
Pick-to-light technology, as it’s commonly
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 the wrong quantity
or unit of measure, puts an item
into the wrong tote, or in some
cases abandons the pick task along
the way. Mispicks also can occur
because of vendor errors or because
a product has been misreceived.
Experts say it’s tough to put an
industry-standard price tag on the
cost of a mispick because so many
factors come into play, including the
value of the product being picked
and the costs associated with ship-
ping, returning, and restocking the
item—as well as the labor required
to handle it all. Soft costs—includ-
ing resulting inventory inaccuracies
and customer dissatisfaction—fur-
ther muddy the waters.
Despite those challenges, there
are some industry statistics that
highlight the severity of the problem: A 2012 study by research company Vanson Bourne estimates that
DCs lose nearly $400,000 a year due
to mispicks, and Crimson & Co.
estimates the labor cost of a mispick
in cart-picking operations at $3 to
$7 per error.
“It’s different for every organization,” says Peter Gerbitz, system
sales manager for Lightning Pick/
Matthews Automation Solutions,
a Wisconsin-based provider of
light-directed and advanced order
fulfillment systems. He adds that
awareness of the problem is growing, although he says efforts to mitigate it lag. “About half [of organi-zations] have really drilled in and
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