| Questions to ask in quantifying the cost of NOT investing in WMS |
| One must consider the following
list when calculating the cost of not having a WMS operational. The answers to these
questions can be revealing and identify problems within the organization from a lack of
timely and accurate information. |
| How often do stock pickers: |
- Find the wrong item at the
location where they were sent to pick?
- Find an insufficient quantity to
fill the order at the location when they get there?
|
| How often do salespeople: |
- Request physical stock checks?
- Have problems or lose orders due
to out-of-stock or low stock situations?
|
| How many rush orders are placed
due to an unexpected need for stock items? |
| How often is the receiving
department asked to check to see if a particular PO is actually in but not
"received" on the system? |
| How often is special-ordered
material sent to stock when it could have been cross-docked if such a procedure was in
place? |
| How often are supervisors asked
to help find stock that is already received but misplaced? |
| How often do order checkers find
mis-picks? |
| How many credits are issued for
wrong items having been picked? |
| What is the amount of freight
charges paid for by your company because of errors or problems? |
Make a booklet holding all the
forms that must be filled out by hand. Calculate for each form:
- Average time per form
- Number of forms per day
|
Time stamp stock location slips
and review the lag time from when they are filled in to when they are keyed into the
system.
- Longest time
- Shortest time
- Average time
|
Time stamp stock receiving
reports and review the lag time from when they are filled in to when they are keyed into
the system.
- Longest time
- Shortest time
- Average time
|
| How many data entry forms
contain illegible numbers or letters? |
| 0 |
| Sources: Get Control of Your
Warehouse! Alexander Communications Group, Inc. 1997 and WMS Global Outlook. Automation
Research Corporation 1998. |
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