Supply chain operations must consider and integrate a suite of technology and system improvements to meet growing demand for the
Supply chain operations must consider and integrate a suite of technology and system improvements to meet growing demand for the ‘perfect order’, a new white paper argues.
The paper, Using technologies to increase perfect order metrics authored by tech solutions company Intermec, examines how each aspect of perfect order performance can be improved through enhancements to data collection processes and technologies.
The perfect order is defined by the United States-based Warehouse Education and Research Council as a complete order delivered on-time, damage-free and with the correct documentation and pricing/invoicing.
Customers demand perfect delivery, the paper says, and markets reward the companies who can do it. It cites an AMR Research study which found companies with perfect order rates of 80 percent or higher are three times more profitable than those operating at a 60 percent rate.
The same study found better perfect order performance also correlates strongly to higher corporate earnings per share and return on assets.
The white paper says basic barcode-based shipping, receiving and inventory management applications, warehouse management systems and wireless-directed picking and put-away are all fundamental to efficient, highly-accurate warehouse and distribution operations.
But it argues other technologies will provide better execution and productivity to create a greater competitive advantage.
“Many companies have used a combination of automated material handling equipment, mobile and wireless computers and automatic identification and data collection (AIDC) systems to improve their inventory accuracy rates to more than 95 percent. Today these accuracy and productivity levels often aren’t enough to meet perfect order goals, or to provide competitive differentiation,” the paper says.
But getting an edge doesn’t have to involve major changes to systems.
“Some simple enhancements to legacy data collection systems can provide the improvement needed to consistently hit perfect order metric goals,” the paper says.
Using barcode with other mobile, wireless and AIDC technologies has the potential to improve order accuracy and on-time fulfillment, the paper argues, and can play a role in improving invoice accuracy and reducing problems from damaged shipments.
Download the complete white paper – Using technologies to increase perfect order metrics – by clicking here.