travel time | National Semiconductor | Singapore facility | Office Depot
The Paperless Chase
by
Jeff SiegelAll told, the paperless system allows two employees to fill 24
orders (with a 99.9 percent accuracy rate) in the time it used to
take one employee to fill one order. Later this year, after Daydots
starts using hand-held scanners, even the pick list will disappear.
Employees will call up orders on their hand-helds and scan the
items as they're selected. The packing list will print out as part
of a label that includes the customer's address and the necessary
postage for shipping.
WHY TRASH PAPER?
By losing paper, companies gain many advantages over and above the
obvious savings in paper costs. Electronic inventory and order
information can be analyzed for trends: Which items are ordered
most often? Which items are combined most often? The warehouse can
then be configured accordingly. Instead of wandering through the
warehouse picking one widget here and another several rows away,
the widgets can be stored next to each other.
This not only improves accuracy (warehouse experts say 99.9 percent
is the norm in a system like this), but also saves time, in turn
reducing costs. According to ClientLogic's Kenerson, three-quarters
of the labor in a traditional warehouse is spent on travel time
between items. Eliminate travel time and costs can decrease
substantially.
National Semiconductor has increased volume significantly at its
Singapore facility, yet it still cut costs by 10 percent. Office
Depot all but eliminated paper delivery records, which were not
only expensive to keep but cumbersome and inefficient to use in
tracking deliveries.
In addition, because it's possible to update inventory quantity
right from the call center almost as soon as the order is
assembled, there's much less chance of selling something that's out
of stock. At ClientLogic, that information is updated every 15
seconds, and clients can even dial in to watch their inventory
levels change.
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