Reducing Errors

Abstract

One of the best ways to improve productivity is to get every job done right the first time.¹ The cost of errors in warehousing is high; the cost of an order picking error, for example, has been estimated as ranging from $10.00 to $30.00 for each occurrence. These costs are derived by considering the writeoffs of undiscovered warehouse shortages caused by picking mistakes, the cost of handling returns, cost of supplemental shipment to replace shortages, cost of reversing errors caused by substitution of the wrong product, correspondence to handle credits and adjustments and, finally, the almost unmeasurable cost of customer dissatisfaction or loss of confidence.