E-shops Struggle with Errors When Dispatching Goods, WMS is a Solution23. January 2020
According to research conducted by the company GRiT, more than a half of Czech e-shops considers order picking errors their biggest warehouse problem. In fact, these can be solved by implementing a warehouse management system, as shown by the example of the food distributor Orkla Food Ingredients CZ. This company, which had long struggled with order picking errors, has never encountered any since deploying the warehouse management system.
The Norwegian distributor of ingredients for bakers and confectioners Orkla Food Ingredients CZ was dealing with the same warehouse problem as thousands of other e-shops – all too often, it was delivering the wrong goods to its customers. „A lot of our goods have identical or similar packaging, which made it easy for the people receiving or dispatching them to make mistakes,“ said Michal Cirok, Logistics Coordinator of the company.
These types of problems occur most commonly in warehouses which use paper-based inventory systems or warehouse modules in ERP systems. „Solutions such as these are usually unable to automatically record warehouse locations, so the location of goods needs to be entered manually into the system. And it isn‘t rare for the person responsible to be confused by all the numbers and make a mistake,” said Tomáš Kormaňák, Product Manager of LOKiA WMS.
Actually, receiving and dispatching goods, as well as entering warehouse locations into the information system, can all be automated with the help of a warehouse management system or WMS. Using on-line barcode readers and a full-fledged WMS, warehouse workers scan barcodes upon receiving goods and then check the dispatched goods against the orders. This leads to a reduced error rate, more accurate records of the location of goods stocked, faster dispatching as well as fewer returns.
After deploying the warehouse management system LOKiA WMS, Orkla Food Ingredients CZ has fully eliminated order picking errors. „I truly don‘t remember dispatching the wrong order due to an order picking error since the deployment of the warehouse management system. The overall number of wrongly picked orders has gone down by 60%. On top of that, I have noticed that warehouse workers are working faster, too,“ said Cirok.
Not only does the warehouse management system eliminate order picking errors, but it also helps companies solve other major problems of warehouse management – for example, it improves real-time inventory control, makes it easy for returned goods to be re-stocked and keeps track of expiration dates of goods, which plays a particularly important role in the case of food distributors.
„If a company is looking into making its warehouse management more transparent as well as increasing the speed and accuracy of work, a warehouse management system is a perfect solution. For my part, I can recommend the LOKiA WMS service, which is what we have been using,“ said Cirok.