The Easy Way to Minimize Pick, Pack and Ship Costs, and Maximize Efficiency
I know from speaking with 3PL engineers and ops people, that so many of you are worried about the costs
to pick, pack and ship, especially with E-Comm growing so quickly! Reducing the number of touches is
critical to maximizing your efficiency and your profits. One of our clients came to us recently with this
Though excited by the growth of the E-Comm business within his company, Kevin just couldn’t find an
efficient way to get the packages out the door without hiring lots of new employees. Even with the extra
help, there was confusion in the aisles, and lots of packages shipping incorrectly. This frustrated his VP of
Operations, and made the customers angry. His customers want what they order online, and they want it
now! He knew he needed a solution, and fast, but the thought of waiting more than a year for engineering
and new material was daunting.
After some basic engineering analysis, we were able to recommend and implement a conveyor system,
with warehouse changes, that took about 3 months, start to finish, and has an 18 month ROI. One part of
the change is the installation and integration of a simple-sortation system that allows for 3 lanes of sorting
(USPS, UPS and Fedex) at a fraction of the cost of a traditional sorter. Kevin now has 4 fewer employees,
with greater efficiency and accuracy. Their package returns dropped by 35%!
When evaluating a problem with a pick, pack and ship system, we identify the gaps between where you
are in throughput and costs, and where you need to be. The enables us to establish metrics by which we
can measure the success of the project. It is important to know your fastest movers, and your “dogs”. It is
important to be able to quickly transition from one season to the next for retail. You need the ability to
readily access your inventory to keep your pickers at full optimization. As a result of over 30 years
experience, we’ve worked with more than 300 3PL’s and companies with in house fullfillment, just like
you, saving them an average of 40% on their material handling equipment. The biggest trick is knowing
what to provide, how it should flow, and how it should be used.
We provide customized skills and training for workers and management. When starting a new project, we
structure the implementation schedule so that is disrupts your day to day ops as little as possible.
- Do you want to reduce charge backs?
- Do you want to reduce labor costs?
- Are there better ways to get your products to your clients, faster?
Call us for a complementary strategy session. I guarantee that you will get off the phone with new
information that will help you address your pack and ship problems.