A research study of distribution centers conducted in 2013 by Vanson Bourne, a market research company in the UK, reported these key findings:
- Managers are focused on improving productivity within the warehouse by using technology to save steps and improve accuracy.
- Picking accuracy was at the top of the list for technology improvement.
- Recent trends include improved management of returned goods, adoption of “Hardware as a Service” and use of RFID and Voice technologies.
Statistics show that nearly 3,000 hours per year are lost due to inefficient processes – all of which could be improved with the adoption of mobile technology. And surprisingly, over 25% of the distribution centers in the US are still using pencil and paper to record transactions.
Due to increased pressure for distribution center managers to improve productivity and save money, many are afraid of making the wrong step. They aren’t sure where to start, but they are being forced to take action.
If your company is one of the over 25% that has not automated the warehouse at all, the first place to start would be in the area of inventory accuracy – labeling and counting inventory using barcodes or RFID. This one project would have the following benefits:
- Reducing shrinkage – result of accurate receiving, accurate shipping and accurate inventory counts
- Reducing labor time to count inventory – result of utilizing fast barcode scanning
- Increased accuracy with no transposition or other data entry errors – barcode scanning is 99%+ accurate
- Reducing or eliminating data entry time – upload the information in real-time from the barcode device
Download our White Paper on designing an inventory system to help with your planning.