This involves keeping an eye on order levels and responding as best as possible to seasonal peaks. When it comes to the success of logistics services, the most important task is ensuring error-free order picking. Working economically will also require performance throughout the entire picking process to be improved, alongside an increase in pick quality and productivity.There are countless errors that can happen in picking, such as selecting the incorrect quantity. Over-picking, i.e. picking too many items, can have various consequences. If the customer reports the mistake, the logistics provider must bear the transport costs for returning the item, along with processing costs and, in some cases, costs for writing off the inventories should they not meet the relevant quality assurance parameters.
If the mistake is not reported, it results in a storage loss based on the item’s value. On the other hand, picking too little of an item (short-picking) leads to costs for processing a credit note and the margin for the lost sale. In most cases, errors in order picking lead to returns. These come with their own additional costs that reduce the profit margin or impact the profitability of the entire order in a worst-case scenario. Alongside this, incorrect picks and the resulting returns can damage a brand’s reputation in the customer’s eyes. This all means that ensuring excellent picking quality is a top priority for logistics service providers.
