In today’s world of constantly looking for ways to improve the company’s bottom line, many Operations are being asked to reduce costs or better yet, increase productivity and efficiency and lower cost at the same time. Here are some ideas and practices that we have identified from inventory assessments and warehouse assessments that we have conducted.
Most fulfillment processes are largely manual in nature; only the very largest companies can justify advanced automation. Take a look at your total cost of back end order fulfillment. We did by studying results from each warehouse assessment we have conducted as well our proprietary F. Curtis Barry & Company Benchmarking ShareGroup data. You’ll find that out of costs that include direct and indirect labor, occupancy, and shipping supplies; total labor generally makes up 60%-65%. (We have excluded shipping costs because it distorts comparisons.)