Training a new warehouse employee takes, on average, 6-8 weeks to get them up to speed, which means warehouses are spending thousands of dollars on onboarding costs per new hire. With labor at its highest cost ever, warehouse picking accounts for 60 percent of operational costs - millions of dollars per year, per warehouse.
increase warehouse efficiency
Your order fulfillment speed and capacity have a huge impact on your supply chain and long-term sustainability. Automating and optimizing your workforce and inventory can not only reduce your costs, but increase your customer satisfaction and competitive edge.
Last mile delivery refers to the final stretch of time and space an order travels from a warehouse, transportation hub, retail location, or fulfillment center to its final destination. Last mile delivery accounts for around 28% of the total product transportation costs - which makes it easy to see how businesses spent over $86B on last-mile delivery in 2017.
Identifying available product stock plays a huge role in order fulfillment. Your priority should be to have an inventory management system that seamlessly enhances the supply chain to drive increased efficiency in the distribution center.
Product identification and picking are an integral part of warehousing and supply chain processes. Order picking accounts for over 50% of warehouse and fulfillment center costs, making it the most important - and costly - activity you can't afford to overlook.
Currently, about 50 percent of all Amazon distribution centers use a picking method referred to as the random strategy where products are placed haphazardly across the distribution center.
When Amazon began operations, all orders were filled using paper-based picking methods. Order pickers were simply handed a list of items to pick, and off they went. Of course, it was easier because Amazon’s only SKUs were books.
Over the last year, retailers have had their resiliency and supply chains tested in response to COVID. As online orders surged with stay-at-home mandates, companies struggled to meet demand with a decreased workforce and broken supply chain. Over a year later, as cities open back up, many retailers are wondering "what's next?"
Also known as pick-by-vision, this contemporary approach to warehouse picking works by providing order pickers with guided visual cues projected on their Head-Mounted Displays (HMD) throughout the picking journey. If there’s an error, the mistake is flagged and the picker can correct it immediately. This saves retailers from making costly mistakes brought on by returned orders.
Pick-to-light, also known as Pick-by-Light (PbL), is a light-directed system that shows a warehouse picker the exact location of the item and the number of items they need to pick. Pick-to-light systems can help operators accurately pick over 450 items per hour.