Typical Savings
The typical savings associated with the implementation of real-time RF material handling technology, resulting in inventory accuracy approaching 99.9%, are detailed below:
Benefits/Savings Commonly Achieved
- Higher inventory turns with lower levels of safety stock
- Less inventory obsolescence resulting from detailed inventory visibility and the application FIFO logic
- Greatly improved order picking accuracy with less short customer chargebacks
- Reduced order cycle time with improved on-time shipments
Enhanced Material Handling Productivity
- Disciplined, orderly and controlled receipt and stocking of goods with more rapid availability of goods for allocation to customer orders
- Unquestionably the most efficient mode of stock putaway, customer order picking and picklane replenishment
- Detailed employee operating productivity data providing the as is for staff performance analysis and performance incentives
- Reduced material handler training time and expense as RF tasks are “documented” and structured on mobile RF devices and are easily understood by employers
- Improved reserve stock storage cube utilization, especially when random stock storage is employed
- More efficient or elimination of physical inventories with periodic/background use of cycle counting and demonstrably accurate inventory records
- Huge reduction in the flood of paper documents, with less lost paperwork (Where did that PickTicket go?) and a vast reduction in the onerous key entry of data
Other Benefits and Savings
- Quantum leap in customer service capabilities with real-time visibility of inventory and order status… rapid problem resolution with enhanced order tracing and tracking capabilities
- Improved shipping controls giving assurance that “everything that goes out the dock door is invoiced”
- Improved receiving controls giving assurance that “everything that is paid for was in fact received”