Labelling and identification boosts picking process
10 April 2017
The management of any warehouse needs an effective labelling and identification system, stock needs to be identified and in its rightful place in order to maximise order picking and minimise costly errors. Beaverswood can offer a one stop shop for all your warehouse labelling and identification needs.
It is understood that many order pickers working in an environment where an ineffective system operates waste a large proportion of their time trying to pick goods that are not in their rightful place. This also leads to an increase in picking errors these errors hurt every aspect of the business as not only does it lead to having to re-process the order sometimes involving credits, re-invoices and re-despatch taking up lots of precious time it could also lower customer retention.
For many SME’s having a full blown barcoded order picking system isn’t feasible due to the costs and as a result most business retain their existing systems which often become antiquated as a result of changes in product, market fluctuations and warehouses practices. A small outlay to produce a labelling system can help in achieving lower picking times, lower errors and often help in increasing customer satisfaction and retention.
Looking purely at cost saving lets use a typical example of an industrial goods re-seller averaging 50 orders a day with an average order value of £75.00 (£3750.00) His order picking errors are 3% (1.5 orders per day) with all the associated costs to correct these orders running at £40 per order. 1.5 orders x £40 =£60 – per day x 20 working days a month x 12 months = a yearly cost of £14,400. By having a more efficient system and reducing order picking rates down to 0.5% which would equate to 0.25 orders per day (£40 x 0.25 x 20 days x 12 months) would give a total cost of £2,400. Not only therefore is there a direct saving of £12,000 achieved in the first year but also it would equate to an extra 300 orders being delivered correctly to the customer, a true double edge sword by reducing costs and improving customer retention.
As well as having an effective labelling system, legislation states that you must warn staff/visitors of hazards within the premises. According to statistics one worker is killed every six weeks and many more injured as a direct result of forklift accidents. Having set pedestrianised routes/areas and visible forklift warning signs will help reduce the likelihood of any incidents occurring.
To further aid demarcation products such as floor signalling can be used which help highlight walkways, traffic flow, pallet positions and general marking on the warehouse floor. Available in a choice of 6 colours these floor labels are a simple but effective solution for floor marking.
Over the last few years there has been a significant growth in company’s adopting 5S and LEAN manufacturing policy’s, The 5S focus is on Sort, Set in order, Shine, Standardise and Sustain. Company’s adopting these policy’s achieve higher operational results by sustaining a productive work environment, reduce waste, help lower accidents and lower un-planned downtime.
To manage warehouse waste and maintain 5S standards adding Racksacks to the end of racking help waste segregation, promotes a cleaner green environment with less clutter/waste products being on the floor possibly leading to lower accidents.
The racksacks are available in 14 standard designs and can also be produced with special prints/logos/design. Due to legislation that became effective in 2015 all waste producers must follow a hierarchy to re-cycle or re-use as much of their waste as possible and any waste that can not be must be segregated before being passed to waste collectors.
Beaverswood Supply Co