26. May 2021

Pick-by-vision: the benefits for logistics businesses

From flexibility and high delivery performance to absolute reliability, logistics service providers need to meet complex requirements. Many businesses outsource their entire supply chain to third-party logistics providers (3PL). These are then responsible for staying on top of delivery requirements, shipping schedules and market conditions, so they can react quickly to any changes and the associated adjustments.

Picavi Blog logistics businesses

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.

Boosting picking quality with pick-by-vision

Unlike other order picking systems, Picavi’s pick-by-vision guides the user through the process with clear instructions and a user interface tailored precisely to their needs. In order to prevent incorrect picks, for example, we have integrated a visualization of the ordered item directly into the process and the user interface. Once the picker arrives at the correct storage location, they are shown a photo and the quantity of the item to be picked on the smart glasses display. All they then have to do is scan the correct item, before continuing the picking process. Pick-by-vision therefore makes life significantly easier for staff.

The biggest advantages of Picavi pick-by-vision for logistics service providers:

  • Easy integration into ongoing operations
  • Flexible use and expansion
  • Strict visual and mobile guidance through the order picking process
  • Real-time verification via the smart glasses’ interface
  • Less mental fatigue for the picker
  • Increased pick quality
  • Increased productivity

How quickly does pick-by-vision pay off?

Amortization time is the key factor when it comes to calculating return on investment (ROI). Experiences have shown that pick-by-vision achieves this after a short period. There are a range of factors that influence this, including the previous picking method and precision, as well as the potential for improvement. Another important element for determining the amortization time is the number of shifts in order picking operations. In a multi-shift operation, in which the smart glasses are used hygienically by multiple workers, the system often pays for itself after just six months. Fewer shifts per day means a longer time frame.

Are you a logistics service provider who wants to know more about pick-by-vision? We are happy to help.

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