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Question answered in Quora - In the warehouse picking how can you prove the ROI on employees many ca


Here are three ways that can be done

1 - Measure your mispicks at the picker level. The WMS you are using might have a Mispick Report. Or you could create one, usually based on Returns that are coming back, because the customer is returning the product because that is not the product they ordered. So you need to match up the Returns with the original Carton# and then create a mispick report and narrow down to the picker that made that mis pick or back order. Once that measurement starts happening the pickers will pay much more attention, so mispicks will reduce

2 - Do not provide the picker, the ability to Back order (or out of stock) in the picking function. Train the pickers to always go to a Supervisor to be able to do back order. So the supervisor will double check the back order scenario, make sure there is absolutely no product within the 4 walls of the warehouse before back ordering the product

3 - Institute an Audit process for a certain % of the cartons, especially if there is a back order scenario, usually this is done by weight, if the weight difference is much higher than a tolerance % then that carton will be chosen for Audit. Once that carton is identified then that can be narrowed down to a specific picker

Once the # of mispicks are identified and the time spent on resolving this (many people's time) are identified then you can measure the amount of labor spent on resolving that situation. So given that this much time & dollars are wasted on mispicks, hiring better pickers will cost X dollars extra, however this is how much the company will save due to not having to spend time on troubleshooting how these mispicks originated in the first place.

Also check out my book Puga Sankara's Supply Chain Blog - that is a must read before spending Hundreds & Thousands of $$$ on your MBA or Masters Degree to get the best ROI or before starting your Entrepreneurial journey.


ABOUT THE AUTHOR 

Puga Sankara is the CEO and Founder of Smart Gladiator. Smart Gladiator is an ATDC Georgia Tech company, Smart Gladiator's award-winning product LoadProof (https://feature.loadproof.com/loadproof) is an Enterprise Photo Documentation System that is enjoying tremendous traction in the Supply Chain Community. LoadProof (https://feature.loadproof.com/loadproof) is a patent pending Centralized Cloud based Enterprise Photo Documentation System for Supply Chain. It is built on the premise that photos and videos are vital documentation serving as compelling proof of important operations performed in the supply chain within and across organizations. These operations may be related to fulfilling customer orders, meeting contractual obligations, or transferring merchandise across different parties taking part in the Supply Chain operations. LoadProof is as important for your organization as an ERP (Enterprise Resource Planning) which is an enterprise system of record for critical documents such as Purchase Orders, Sales Orders, Contracts between parties etc. that have tremendous legal ramifications, or a WMS (Warehouse Management System), that holds indispensable information related to orders shipment/fulfilment data. Just like Instagram, Facebook or Snapchat have evolved into platforms that enable individuals to showcase how pretty they or their clothes are, LoadProof is a similar Enterprise system of record that holds photos, not so much for show off, but to serve as compelling, unequivocal, thoroughly documented proof, even in the court of law when there is a dispute between organizations while they perform many facets of their functions/operations, as well as for increased visibility and transparency within the Supply Chain. The capabilities of LoadProof are discussed in detail in the next sections of the document below. LoadProof is live in 460+ Sites, 250+ corporates, 13 Countries.There are more testimonials in this link here also https://www.g2.com/products/loadproof/reviews. Learn more here on our YouTube channel,  https://youtube.com/@smartgladiatorloadproof  & also here in LinkedIn - https://www.linkedin.com/company/smartgladiator/

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