INCREASED PROFITS WITH VOICE PICKING
Improving accuracy, productivity, training times and safety in your warehouse
Voice picking delivers proven performance improvements in productivity, accuracy, cost reduction and job satisfaction for your employees.
Voice picking literally talks people through their daily tasks, replacing cumbersome lists and traditional hand-held data capture methods with hands-free, personal voice instructions.
In facing today’s harsh economic realities, warehouse managers are increasingly looking to:
- Improve the agility of their distribution centers
- Improve labor efﬁciency
- Improve visibility to warehouse activities and inventory and order status
- Improve throughput
With voice picking, your warehouse staff has a better ability to focus on order selection rather than reading a screen, pick list, or purchase order; keying in data, or juggling both product and an input device. Depending on your facility, voice picking is often faster and easier than RF and much more effective than manual data entry.
Voice picking can improve labor efﬁciency. Voice unshackles your employees’ hands and eyes from their RF guns, increasing efﬁciency and safety. Further, training time can be reduced by as much as 50 percent – an important consideration for growing facilities or warehouses that employ seasonal workers.
Customers using voice in their warehouses have experienced performance gains as high as 30 percent and accuracy improvements as high as 60 to 80 percent. More on-time and accurate deliveries because of improved DC and warehouse efﬁciencies ensure greater customer satisfaction.
Where Does Voice Picking Fit?
There are a wide variety of warehouse operations that have successfully used voice picking to improve their efﬁciency and accuracy:
- Temperature-controlled warehouses want to reduce the amount of time their workers are exposed to extreme temperatures.
- Distributors of large items and cases may ﬁnd that handheld bar-code scanners are difﬁcult to use when two hands are needed in the picking process.
- Pharmaceutical companies and C-store suppliers often require quick turn-around for their customers.
- Food distributors may want to move perishables out quickly.
- Suppliers to retail stores have stringent accuracy needs.
- Regional DCs are under increased volume pressures.
- Medical and equipment distributors are held to strict quality of service.
- Everyone wants to improve accuracy and speed.
Voice Picking Return on Investment
If you’ve been keeping up with voice technology, you know that industries involved in food and beverage, perishables, pharmaceuticals, grocery and retail supply have been the early adopters of voice picking. But many other types of warehouses could enjoy improved operations from voice picking because the biggest beneﬁts from voice often come in low margin, high volume, and labor-intensive picking operations.
The lower your margins and the more you depend on warehouse labor, the more critical accuracy and productivity become to your bottom line.
With voice technology, your employees can work without holding onto, reading and typing into an RF gun. This literally gives you an extra set of eyes and hands for each employee fulﬁlling orders in your warehouse. Many warehouses using voice are able to double-check their orders during picking rather than entering info through RF.
The return that you will see in voice picking will be driven in a large part by the types of processes currently in your warehouse. The list of potential beneﬁts is impressive:
- Increased accuracy
- Increased productivity
- Improved training and safety
Even a very small increase in accuracy – one-half of one-percent – can add up to enormous savings in a high volume picking environment. Recent studies have put the total cost of a picking error anywhere between $60 and $400, depending on the complexity of your sales model.
Where do these costs come from?
- Customer service costs
- Freight costs back from customer
- Receiving costs from customer
- Packaging had been opened
- Picking replacement for customer
- Freight costs back to customer
- Issuing and mailing the Credit Note
- Re-invoicing and re-mailing
- Disruptions, paperwork, and phone calls
In addition to the costs above, warehouses that face accuracy problems also spend too much time in rechecking orders and in over-stocking.
Let’s take a hypothetical example of a fastener distributor who is picking 100,000 lines per week. Using an Accellos system, their accuracy is already impressive: 99.8%. That’s only two errors per thousand. A tenth-of a- percent improvement to 99.9% accuracy would bring that down to one error per thousand. Assuming the low end of the cost-per-error range of $60 per error, that’s a savings of $6,000 per week or over $300,000 each year.
Warehouses using voice picking could easily see an increase in productivity between 10-20% from:
- Going hands-free with no paper or RF guns to juggle
- Going eyes-free with no stopping to read picking instructions – the system reads to them
- No returning to the order desk to get the next picking list.
- Voice directions minimize the time between orders by pushing employees forward with the next order in the queue.
Improved Training and Safety
The training time for voice picking is usually reduced since there are fewer things for the employee to do during picking. The voice direction guides them along their process. This is important where you have a high turnover environment or a need for seasonal labor.
Another beneﬁt from voice picking is that because your hands are free to focus on lifting units and your eyes are free to focus on your surrounding environment, many warehouses also notice a reduction in accidents.
Calculating Your Own Return
Every warehouse is different and voice picking is not for everyone. Consider the following areas of your operation when considering implementing voice:
- Operating and labor costs
- Training time and expenses
- Reduced turnover and costs from turnover
- Improved safety
- Reduced supplies
- Fewer dropped and damaged RF guns