Spoilage, damage and stock shrinkage costs money. Saving these costs will add to the bottom line for any company. Eliminating a small percentage of this profit leakage can make a big difference.

Here’s an example: Logisticomms have recently carried out work for a company who ship an average of 280 orders per day. In discussion with them we found out that they had an pick error rate of 1.16%. This seems small, but when you consider 250 working days x 280 orders, it is 1.16% of 70,000 orders, or over 800 orders a year. Considering their average order value, what this company realised was that those 800 orders represented a lot in lost profit.

Since installation of VideoAudit from Logisticomms that company is enjoying 0.02% pick error rate. Error claims can be investigated, and the cost associated with replacement stock, reverse logistics, re stocking re packing, delivery cost etc, is saved by being able to prove what actually was shipped.

Any opportunity to reduce cost will improve profit. Staff theft of stock is also typically high in some industries and present in many areas of manual pick and pack especially where agency workers are used in peak periods. Controlling what happens in your warehouse can be protective of the health of your company’s P&L.