What are the Benefits of Automated Order Fulfillment Processes?

By Logistics Tech Outlook | Thursday, October 15, 2020

Order fulfillment is crucial, and the metrics are improving, three significant benefits to improving the processes in the order fulfillment operation include improved picking speeds: increased picking accuracy and reduced labor costs. Let's dive deep into these three benefits in the below-given article.

FREMONT, CA: Order fulfillment is a priority for most of the companies due to the uninterrupted impact on customer satisfaction and labor resources order picking essentials. Incorrect or late orders can create the potential for an unhappy customer who can decide to shop anywhere or use another vendor next time.

With the customers demanding faster, more frequent orders in smaller quantities with custom labeling and electronic delivery tracking, most of the warehouses are turning to technology to help streamline and automate their order fulfillment process.

Picking speeds

Top 10 Warehouse Management Solution Companies - 2020Picking speed measures the amount of time taken to retrieve the product from the storage location and place it into the order container. Picking speed is usually measured with some variation of how many or by several people. The picking portion carries five different activities together. The most significant opportunity to increase picking speeds is to decrease travel time which is a conventional,

Picking Accuracy

Picking accuracy measures how often the part is picked from the inventory. It can be calculated by dividing your errors by your overall picks. Some operations measure put accuracy separately or combined and put into one general accuracy metric. The accuracy metrics can be expressed by line, pick, or order depending on what makes sense for the operations. Technologies that aid an operator in locating the correct part are designed to enhance the accuracy rates within the manual or automated order picking operation

Labor Costs

Labor costs point out the total cost of the personnel needed to manage the order fulfillment operation, and it's known as a significant number in the overall operating budget. Labor costs can then be categorized by the number of orders filled within the time to calculate the average cost of labor per order or line. With increased labor costs and a shrinking the labor pool, automated picking technologies can minimize the amount of labor needed for the order fulfillment for reduced labor costs.

See Also: Top Logistics Technology Solution Companies

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