The data derived from Sage X3 can be used for many things, including improving warehouse management. You’d think that it would take a lot of effort to improve warehouse management and productivity, but sometimes little efficiencies make a big impact.
It only takes a few errors to start leaking profits from your business. Case in point: even a half percent (0.05%) of mistakes in picking can lead to money lost processing returns, productivity, and dissatisfied customers. It may seem like a very small amount, but even a little bit is too much when it comes to losing money.
Use the data from Sage X3 to review your current return statistics. Read through the reasons why people are returning products. If the wrong products are going out, then you need to take steps to improve picking and packing.
Ways to Improve Picking and Packing
- Examine return information: Review all the information in Sage X3 on your returns. If the number of items returned for incorrect products or reports of incomplete orders is high, it could mean problems in your picking and packing area.
- Review the existing process: If you have written process and policy manuals, review them now to make sure they are in line with your current system. Sometimes processes are written down, but the actual process in use changes over time and the written method isn’t updated. New employees may not even know you have a written process for picking and packing. Take time now to update the process and schedule refresher training for your teams to make sure everyone is following the current protocol.
- Ask for comments and feedback: Don’t be afraid to invite the warehouse team’s comments, feedback, and suggestions. A good way to do this is to host a round-table luncheon where the company provides sandwiches or pizza and creates an informal atmosphere. Allow people to open up and share thoughts for improving the process, feedback, and ideas.
- Offer prizes: If you can monitor data on picking and packing, hold a contest to see which team can generate the lowest number of order mistakes. Give a special prize to the team with zero mistakes per month. Software that tracks return data can help you set the parameters for a contest. Monitor metrics such as returns for incorrect or incomplete orders, which leads straight back to the picking and packing process.
- Recheck data each quarter: Start the process again each quarter by reviewing Sage X3 data on returns. Compare previous quarters with your current stats and monitor improvement. Reward your warehouse team for improvements, no matter how small. Every little bit counts when it comes to improving warehouse management.
Make Little Things Count
Small items can be the most troublesome in the picking and packing process since they are easily dropped, miscounted, or missed during scanning. Consider hosting some additional training sessions with your team on handling small items. You may also want to consider teams dedicated to picking only small items.
Speaking of small, it’s also a good reminder that little mistakes can add up. One small mistake in shipping can lead to lost customers, canceled orders, and a drop in profits. Every incremental improvement you make in the picking and packing process can help the bottom line.
Sage X3 with Warehouse Management
Sage X3 offers a robust enterprise resource management system that includes warehouse management modules, as well as order processing, inventory management, accounting and financial management, CRM, and more. It’s one system that does so much for manufacturers. Whether your company is in food manufacturing or you manufacture cosmetics, chemicals, pharmaceuticals, or other materials, Sage X3 can help you improve your business through better information management and communications.
IWI Consulting Group
IWI Consulting Group helps businesses gain insights into their operations, inventory, and profitability. We provide software and support for a wide range of industries throughout Canada. For more information, please visit IWI Consulting Group or contact us today.