the roi of voice picking - intelligrated · 2018-08-22 · the roi of voice picking | 2 inventory...

The ROI of Voice PickingThe Financial Benefits

The ROI of Voice Picking | www.intelligrated.com

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The ROI of Voice Picking

Primary Financial Benefits

Secondary Financial Benefits

The ROI of Voice Picking

Improved Operational Accuracy

Increased Worker Productivity

Accuracy Aids Productivity

Staffing Improvements and Labor Savings

Improved Safety and Reduction in Lost Time

Greater Regulatory Compliance

Inventory Optimization and Downstream Improvements

Going Green

Improved Operational Agility

Summary

Payback Example

A Best Practice to Keep in Mind

Innovative, With the Most Forward-Looking Technologies

Determining the Cost of an Error

The ROI of Voice Picking | www.intelligrated.com 1

The ROI of Voice PickingThe Financial Benefits

A voice project comes alive when its financial

business benefits can be clearly stated. To

produce a solid business case – replete with

ROI, internal rate of return (IRR), payback period,

net present value (NPV) and similar metrics –

one must first quantify the financial benefits

that reduce existing hard-dollar costs in labor,

operating expenses, materials, inventory and

fixed assets.

At Honeywell Intelligrated, we help clients build

this well-substantiated financial picture by

creating a concrete foundation based upon a

number of primary and secondary cost savings.

Primary Financial BenefitsAccuracy – reduction in errors by providing

a hands-free, eyes-up technology that keeps

workers focus on the task at hand. There is no

longer the distraction of looking at a screen or

a piece of paper to know where to go or what

to pick next. The worker is directed via voice

through the entire process, allowing them to

be more alert and aware while performing any

number of tasks.

Productivity – because workers are more

focused on the task they’re performing and

they’re being directed by a voice and not having

to stop or pause to look at a screen or a piece

of paper, the worker is more fluid in his/her

movements and able to move more efficiently

throughout their day. Fewer steps to complete

tasks throughout the day – less fumbling or

struggling with other forms of information –

reduces lost time, leading to faster warehouse

throughput.

Secondary Financial BenefitsLabor efficiency – the use of voice and

the subsequent increase in overall worker

productivity lead to additional savings including:

reduction in overtime, the need for fewer

inspectors to check order accuracy, less reliance

on temporary or seasonal staff, and the ability to

cross-train employees to perform more voice-

directed tasks.

Safety – the hands-free and eyes-up nature of

voice creates a more alert and aware workforce,

helping to decrease the chance for injury. This

also leads to less damage and breakage, which

can ultimately lead to other incidents or injuries.

Regulatory – achieve cost-effective compliance

using voice for real-time material tracking and

traceability, to comply with evolving government

regulations without burdensome process or cost.


Inventory and downstream savings – reduced

inventory holding costs are a direct result

of the ability to create a more efficient

fulfillment cycle from the receiving dock to

the outbound shipment, reducing mis-picks

and moving product at the right time to meet

customer demand.

Green – savings from going paperless and

reducing the reliance on labels can go a long way

to reducing not only the cost of paper, but energy

efficiency by using fewer printers and waste

related to paper and other supplies.

Each of these topics is discussed, establishing

the financial impacts derived from voice-

enabling the warehouse. For most companies,

only the Primary Benefits are necessary to state

a positive business case, with the Secondary

Benefits representing incremental upside

and accelerated financial rewards. Using

fewer benefits to “state the case” for voice-

directed solutions makes the business case

easier to understand (simplifying consensus)

while setting a comfortable level of project

expectations. However, today’s supply chain

leaders realize the potential impact of all

warehouse voice benefits and have been

accurately tracking their impact across all

technology investments, and expecting their

vendors to provide the same information.

Voice solutions from Honeywell Intelligrated

typically provide paybacks in the 3- to 12-month

range. While every company’s situation is unique,

the combination of innovative, affordable

Honeywell Intelligrated technology with rigorous

financial analysis is a proven winner.

The ROI of Voice PickingPicking is the most labor-intensive operation

within the warehouse, making it one of the most

popular supply chain processes to improve with

voice technology. Much of the impact to the

business comes from four key criteria:

• Reduced operational costs

• Increase workforce productivity

• Improved customer satisfaction

• Enhanced operational agility

The majority of benefits for using voice-directed

solutions in picking operations come from the

hands-free, eyes-up nature of voice technology.

By using a headset instead of a screen or piece

of paper, the worker is able to keep their eyes

continuously on the task at hand. By being free

of holding a keyboard, a scanner, or reaching for

a piece of paper, both hands can be used to carry

out a range of tasks.

Hard-dollar savings are typically derived from a

number of areas, including but limited to:

• Accurately filling orders the first time

• Increasing picker efficiency (e.g., more lines

picked per hour; less overtime)

• New hire training and onboarding (meeting

productivity expectations faster)

• Reducing QA staffing (fewer audits required)

• Decreased staff churn

• Increased safety (lower insurance costs)

• Efficient regulatory compliance

• Inventory optimization (reduced holding costs)

• Fewer administrative, fixed asset and

consumable overheads

• Real-time visibility and integration to business

system decision making


This white paper focuses on the hard-dollar

impacts of automating order fulfillment picking

by voice.

Improved Operational AccuracyWhen end-customers or stores receive orders

with items missing, incorrect quantities,

“extra” (unordered) items, damaged goods or

incomplete/inaccurate paperwork, inefficiencies

ripple throughout the supply chain. Labor and

transportation costs increase, repeated pick

and delivery activities interrupt and reduce

productivity, order fulfillment falls behind

schedule, and payments are slowed. The

penalty for not getting the order right the first

time is significant.

Depending upon the value of goods and process

costs, errors in the picking process can cost

anywhere from $10 to $250 each. For sizable

operations, this can translate into millions of

dollars in hidden costs.

Typical reductions in the number of errors,

through the use of voice-direct picking:

• 50–90% improvements for paper-based

operations

• 1–15% improvements for pick to-light

operations

• 8–25% improvements for RF scanning

operations

Reducing ErrorsOperational processes involving people

are filled with bountiful opportunities for

human error. Items can be picked from the

wrong slot, in the wrong quantities, etc.

Common order fulfillment errors include:

• Item not received (out-of-stock)

• Too few received (or delivered damaged)

• Too many: more items received than ordered

• Wrong item received (e.g., wrong version)

• “Extra” items (not on the PO)

• Proper quantity received but paperwork does

not match

• Items not labeled correctly

• Paperwork not matching expectations

• Items not received within the committed

time frame

Companies use voice-directed picking because

of its ability to greatly reduce such errors,

resulting in order accuracy approaching 100%

accuracy. By leveraging a voice-directed,

hands-free/eyes-up technology, order error

rate is typically reduced by 50–90%.

When orders are delivered correctly the first

time, costs are avoided in many areas of the

value chain, including administrative changes,


re-picks, re-delivery and cost of lost sales. For

a more comprehensive perspective on items

which contribute to the “per error cost,” please

refer to the section at the end of this document.

Increased Worker ProductivityImproving warehouse productivity results in

companies being able to service increased

product selection (growth in the number of

SKUs) and higher order volumes without growing

square footage or staffing.

By combining hands-free picking operations

with WMS (or similar) software, voice-directed

picking productivity improvements can reach*:

• 10–35% for paper-based operations

• Up to 30% for pick-to-light operations

• 10–35% for RF scanning operations

* Please note that every warehouse operation is unique in type of goods, number of SKUs, blend of fast/slow movers, size of inventory, density and related travel times, business processes, etc., so each company’s experience can differ.

Picker Efficiency (Measured in Lines per Hour)Real-time connectivity with warehouse workers

provides the necessary visibility to optimize

operations with warehouse management

systems (WMS). Voice picking enhances WMS

use in reducing order cycle times through

new optimization strategies in warehouse

layout and item selection (picking). For

example, an operation performing discrete

order picking might use voice technology to

move to batch picking to multiple orders.

Effective designs reduce travel time between

pick locations and the handling of exceptions

(shorts, damage, etc.). A WMS capable of task-

interleaving can permit a worker to perform

multiple roles dynamically, based upon

location, skills and current business priorities.

For example, blending a cycle-counting task

while performing a replenishment activity.

Hands FreePicker productivity is gained from the

hands-free, eyes-up capability with voice-

directed technology. Workers avoid the need

to handle paper or devices multiple times

during each pick, resulting in work being

accomplished with fewer motions and steps.

Environmental conditions also add to the

difficulty in using technology in many

warehouse processes, but more frequently

in picking. For example, workers in cold

storage wear gloves, making it hard to

operate keyboards for data input. These same

workers can easily use voice to enter data

such as items picked and catch weights.

Voice picking is typically well suited to the

following environmental situations:

• Protective clothing in use (gloves in cold

storage, protective suits in chemical

storage, etc.)

• Motorized equipment (e.g., both hands

occupied when operating a lift truck)

• Climatic extremes (e.g., outdoor data

collection during stormy weather)

• Special manufacturing processes (such

as hazardous materials where worker

concentration is paramount)

• Situations where both hands are required to

safely move goods


Rapid “New Hire” EffectivenessOften staffed as an entry-level position,

warehouse picking is subject to significant

staff churn, resulting in costly training

and onboarding expenditures. Typically

a warehouse sees rapid turnover in new

hires, as workers (and the hiring company)

frequently use a short assessment period to

determine whether the work is a mutual fit.

Prior to voice-directed picking, new workers

are frequently brought up to speed by working

alongside an experienced worker (with a slight

detriment to the “trainer’s” pick performance).

It is not uncommon for it to take months for a

new worker to know the layout, products and

optimized processes that result in meeting

corporate productivity expectations.

Honeywell Intelligrated’s approach accelerates

the learning curve for new workers, achieving

corporate production metrics within the first

few hours or shifts of use. By focusing on the

right combination of software and hardware

technology, Honeywell Intelligrated’s unique

approach to voice enabling warehouse

processes helps drive even greater savings.

• New hires already know and are comfortable

using the rugged smartphones featured in

Honeywell Intelligrated voice solutions. There

is no time wasted on the longer learning curve

associated with special purpose devices or

handheld computers.

• Guided training is provided via three-way

conference calling, with local or remote

trainers. The trainer is actively on the same

transaction with the new worker, and is able to

interactively model proper behavior, allowing

the new hire to take over the transaction piece

by piece. Since the Honeywell Intelligrated

solution is speaker-independent, either party

may speak the necessary phrases to the WMS

at any time, helping provide a more interactive

and efficient learning process.

• Honeywell Intelligrated voice solutions do not

require use of a display, avoiding potential

second language or reading skill issues.

• Users control when they wish to migrate

from a “novice” prompt interface to normal

or advanced modes. Users also choose the

language in which to work.

• When changes in process are introduced, on-

line audio tutorials can be used to run workers

through samples of the new work scenarios.

This innovative approach to how Honeywell

Intelligrated delivers voice solutions, including

new innovations for training, enables new

hires to work at 95% or better corporate

efficiency from the get-go, and quickly

exceed 100% of their target metrics.

Seasonal Labor or Temporary WorkersIf integral to your business or staffing

requirements, the simplicity in adding new

workers to a Honeywell Intelligrated voice

solution makes it easy to include temporary or

seasonal workers within the automated voice-

directed picking solution. A temporary resource

can be brought up to speed the first day on

the job, without sacrificing accuracy of work.


Reduced OvertimeImproved picker efficiencies – a greater number

of line items being accomplished per worker,

per hour – reduce the exposure to (more

expensive) overtime hours. Because of the

ability for voice solutions to improve not just

the average worker, but to bring up even the

bottom performers, voice enablement can

help provide greater flexibility when it comes

to staffing your warehouse operations.

Get “In the Zone”Years of voice picking deployments have

uncovered that worker behavior changes and

actually enhances picking processes and

leads to greater efficiencies. Observations

reveal pickers who receive instructions via

a headset get into a “picking zone” (a work

rhythm), becoming less distracted, and

thereby increasing their hourly output.

Timely ReplenishmentWhen integrated with other key applications

like cycle counting and replenishment,

voice-directed picking enhances real-time

replenishment notifications and subsequently

reminds the pickers to return to unpicked

items as they become available. This

minimizes the need for backtracking at the

end of a shift, or shipping incomplete orders

and expediting additions/missed items.

Incentive ProgramsAnother positive factor influencing productivity is

the enablement of incentive or bonus programs

based upon personal production. With the real-

time visibility voice-directed picking provides to

individual performance, companies can track

and reward each worker for performing at or

above corporate metrics. At any time, pickers

can simply ask for their current performance

status, ensuring that they are aware of their

own performance level. This drives improved

efficiencies and decreases order-cycle time.

Accuracy Aids ProductivityImprovements in pick accuracy (as discussed

herein) provide tangential benefits to warehouse

staffing levels and pick productivity. For example:

Reducing Auditing Reduces Labor CostsWith a significant improvement to pick

accuracy, the number of order auditors –people

in a quality assurance (QA) role – can be greatly

reduced. The time each picker spends validating

accuracy can become far more selective.

Dedicated QA staff can be redeployed to other

warehouse tasks.

ASN PrivilegesIncreased pick accuracy is a key qualifier for

participating in Advance Ship Notification

programs. ASN programs include entitlements,

which can result in downstream delivery

efficiencies, including:

• Dock door delivery prioritization (“go to the

head of the line”)

• Drop and go without inbound delivery audit (or

token audit only)


These special privileges – extended only to

high-accuracy suppliers – can easily reduce

delivery times by two-thirds, permitting each

driver to execute more deliveries every day.

On Time: Fewer Job InterruptsPicking orders correctly the first time helps

all orders stay on track for timely delivery.

Companies with high accuracy avoid losing

time repeating picking and re-shipping orders a

second time. This avoids de-prioritizing existing

pick work in order to correct prior errors through

high-replacement orders.

Staffing Improvements and Labor Savings

Reduced Staff TurnoverVoice picking contributes to a reduction in

staff churn and turnover in a number of ways:

• Increasing the productivity of more senior

workers reduces the need for entry-level or

inexperienced workers (where churn rates tend

to be higher)

• Increasing the productivity of new hires

improves their effectiveness (success) and

thereby their impact on the business

• Workers see the company investing more

strongly in them and have an increased sense

of value

• The “cool factor” of using modern technology

(which also reduces the attraction to

jobs at other companies not using similar

technologies)

• Non-native speaking workers use the voice

system as a way to build language skills in

the predominate local language, increasing

promotion opportunities (and their overall

value to the company)

• Incentive programs (as previously mentioned),

where individual performance can be

recognized and rewarded

Simplified HiringVoice-directed solutions simplify hiring, as

there is less emphasis required on spoken

or written language skills. The multilingual

capabilities of voice solutions enable

workers to work in the dominant local

language, or a non-native language/dialect.

Honeywell Intelligrated voice solutions offer

the following multiligual capabilities:

• System speaks to workers in 46 languages/

dialects in 85 different voices

• System understands workers in 68 different

languages/dialects

Improved Safety and Reduction in Lost Time

Safer Work EnvironmentHands-free and eyes-up technology increases

worker safety by removing distractions

(such as looking down at paper or a device

screen), enabling workers to be more aware

of their surrounding environment. Increased

awareness leads to fewer injuries and

deaths, stabilizes staffing predictability

and reduces legal liabilities while – over

sufficient time – lowering insurance costs.

Most safety benefits are realized outside the

initial project payback period, but have valuable

business impact nonetheless. For example:


• Reduces worker injuries caused by moving

goods: both hands are free to handle items and

workers are more aware of their surroundings.

[Note that using two hands has also showed a

reduction in product damage.]

• Worker awareness helps avoid injuries from

lift trucks. (In the United States, OSHA reports

that 95,000 injuries annually from accidents

involving powered industrial trucks).

• Heavy equipment and lift trucks can lead to

major injuries and in some cases, even death.

According to the U.S. National Institute for

Occupational Safety and Health (NIOSH), a

person is killed once every three days in an

accident involving a lift truck. This is traumatic

to all involved, and has also resulted in

$1–2 million legal settlement.

• The reduction in injuries, repetitive stress

claims, and accidents has a cumulative effect

on the cost factors (rating basis) for insurance

taxes such as Workman’s Compensation rates.

On top of contributing to other factors such

as Green Initiatives, becoming a paperless

operation – removing paper clutter and

debris – creates a safer work environment.

Note: With the introduction of headsets, companies should follow safety best practices. This includes using single-ear headsets to maintain workers’ environmental awareness, ensure cables have quick disconnect capability, and issues each worker their own headset for good hygiene practices.

Greater Regulatory ComplianceAnother form of safety is the tracking of products

and their sources (frequently driven by public

health safety regulations such as the U.S.

Bioterrorism Act of 2002). Recent examples

of tainted foods and dangerous lead levels in

toys have accelerated government involvement

and increased the requirement for traceability.

Industry organizations are also promoting similar

safety initiatives, such as Produce Traceability

Initiatives (PTI) using global data collection

standards such as GS1.

Voice solutions – at times in collaboration

with other data collection like RF scanning or

Radio Frequency Identification (RFID) – easily

capture, key tracking information (production

batch, lot number, dates, serial numbers, etc.),

enabling companies to be in compliance

with a growing number of local, national and

international regulatory requirements.

Inventory Optimization and Downstream ImprovementsReal-time visibility into product availability

enables companies to optimize inventory

levels, accurately know what is on-hand (and

where), and quickly trigger replenishment

activities. Voice picking plays a valuable

role in inventory optimization by:

• Interleaved or stand-alone cycle-counting,

providing frequent validation of actual

inventory levels

• Tracking storage location moves or transfers

(preventing goods from being “lost”)

• Identifying low or out-of-stock situations

and damaged goods, triggering timely

replenishments – avoiding incomplete orders

or unproductive wait times, preventing

backtracking or later re-picks, and optimizing

lift use

Companies can leverage this information to

reduce the level of warehouse safety stock,

greatly reducing inventory holding costs.

Staffing costs associated with periodic physical

inventory counts may also be reduced, as

existing staff can be equipped via voice to

perform cycle counting while doing other tasks.

If erroneous deliveries are being made to

company-owned retail outlets, then the absence

of expected items becomes lost company

revenue. Items not present are items that are

not sold to meet existing demand. If un-ordered

items are received and sold at a special

discount – to avoid return costs – margins are

also negatively impacted.


Going GreenVoice-directed technology can even help enable

more paperless operations, which can lead to:

• Reduction in fixed assets

• Reduction in material costs

• Less support staff time and costs

Voice technology enables work to be

accomplished with fewer workers. This can

reduce the capital requirements for lift trucks

and related fixed assets which support

picking operations. Optimized routing of lifts

further reduces the replacement cycle for

consumables such as batteries and propane.

Voice can also remove the need to print

orders, reducing consumables (paper

reams, toner, drums, etc.) and the need

to replace printers as frequently.

Migrating to paperless operations (save for

labels) also reduces administrative staff time.

No longer does the office staff need to spend

hours creating and distributing paper orders, or

subsequently keying in pick confirmations, pick

amendments and order details like catch weights.

Improved Operational AgilityToday’s consumers have increasing expectations,

and these have tremendous impact on the

warehouse. As consumers desire more choice,

the number of products (SKUs) increases. As

customers’ product loyalty becomes more

transient, slotting for high movers versus slow

movers is ever-changing.

To meet such demanding supply chain dynamics,

companies increasingly invest in advanced

warehouse optimization software. These systems

guide the best placement of goods given current

demand, provide the most efficient picking

routes and pick strategies, handle replenishment

and inventory control, and interleave staff tasks.

Voice technology has a key role in these

advanced strategies, providing real-time

visibility and voice direction to workers across

the warehouse. As operational strategies

change, much of it is transparent to workers

as they merely continue to respond to voice

directions. For example, a worker may be

unaware that pick strategies have shifted from

batch to zone picking. Their work remains

constant – they hear where they are to go and


Payback ExampleAs pointed out in the Introduction, most

business cases are stated using the fewest

number of benefits necessary. This approach

is popular, as it sets very achievable

expectations and makes the project story

easy to understand and support.

Voice-directed picking is no different. Most

business cases are built solely on three

Primary Benefits, as illustrated by:

USING PRIMARY BENEFITS ONLY

SAVINGS

Fewer Ship Errors $450,000/yr

Faster Picking $850,000/yr

Fewer Checkers $200,000/yr

Annual Benefit $1,500,000/yr

Monthly Benefit $125,000

Year 1 Cost $475,000

BREAK-EVEN 3.8 MONTHS

Not only is this a simpler case to state, but

contains the bulk of the financial benefits.

Examining the contributions of secondary

areas in comparison, holding costs constant,

shows that the break-even impact is

incremental and not as impactful (or as often

quantifiable) as with the primary benefits:

PRIMARY BENEFITS SAVINGSPERCENT

OF ROI

Fewer Ship Errors $450,000/yr 24%

Faster Picking $850,000/yr 45%

Fewer Checkers $200,000/yr 11%

SECONDARY BENEFITS

Effective New Hires $75,000/yr 4%

Faster Deliveries $210,000/yr 11%

Reduced OT $45,000/yr 3%

Reduced Inventory $35,000/yr 2%

Insurance $2,000/yr 0%

Annual Benefit $1,867,000/yr 100%

Monthly Benefit $155,583

Year 1 Cost $475,000

BREAK-EVEN 3.1 MONTHS

pick the items as directed. This transparency

suits the dynamic nature of warehouse

operations by allowing managers to better:

• Change pick strategies

• Change SKU locations

• Introduce new SKUs

When companies want to introduce new

processes to workers, the Honeywell

Intelligrated voice picking solution simplifies

training and provides ever greater flexibility to

not only extend voice to improve operations,

but extend bottom-line savings.

SummaryA range of financial analysis methods can be run

on a voice project. The most popular and most

effective include:

• Breakeven on year 1 investment (in months)

• Return on investment (ROI)

• Net present value (NPV), at a given

discount rate

• Internal rate of return (IRR)

• Project income statement (accrual basis)

• Project cash flow statement (excluding

depreciation)


Typically, all are built upon real-world

quantification of each voice benefit (those

discussed in this paper). It’s important to identify

the method that not only best fits your corporate

requirements, but also allows you to track the

necessary metrics to truly determine the success

of your implementation.

With the availability of more applications

using voice, companies can realize more

incremental gains in ROI and quicker payback.

Interleaving operations and expanding across

the warehouse are just two of the intangible

benefits of utilizing voice technology in more

and more applications. Being able to track

accurate inventory location and levels at any

point in time fully drives velocity and efficiency

in your fulfillment process and aligns your

operations with your customer demand, without

sacrificing service levels. Voice has proven

its value and over-delivered in its results time

and time again. The time to invest in voice

technology to improve your bottom line is here.

A Best Practice to Keep in MindBuild the business case for voice-directed

picking on fewer (primary) cost justifications,

which are sufficient to make a simple yet

compelling financial case. Track both

primary and secondary benefits following

deployment, to enjoy an upside and an even

faster path to investment payback.

Innovative, With the Most Forward-Looking TechnologiesWhile this white paper has been narrowly

focused on the use of voice for picking, you

should not think of limiting the technology to

just warehouse tasks inside the four walls. Blend

voice with scanning, lights, keyboard/display,

RFID, RTLS and GPS. Voice solutions provide

value to mobile employees whenever hands-free

operation proves advantageous over other user

interface methodologies, including:

Receiving – The accuracy of the receiving

process is increased as the receiver focuses on

one thing: receiving the product. The rate

of receiving also increases as the receiver is

not interrupted with stop and start steps in the

process.

Put-away – Can be automated to meet the

specific needs of the WMS and match the

demands of each environment. Using voice

provides advantages and benefits, regardless

of whether an operator is performing driver– or

system-directed put-away.

Replenishment – Workers focus on the timely

moves of pallets or cases being dispensed, as

well as the location where the work is being done.

Voice enables multi-tasking, so the worker can

carry out the replenishment and confirm the

activity, all at the same time. This results in better

performance and real-time data collection while

increasing task accuracy.


Cycle-counting (inventory) – Whether it’s

integrated as part of the picking process in order

to update low-quantity items, or as an ad-hoc

or stand-alone application that helps maintain

more accurate inventory levels, cycle-counting is

one application that has hard and soft payback

benefits. Inventory no longer requires bodies and

days to get counts; now you can have real-time

updates every day to ensure you warehouse is

moving at top speed.

Temporary moves – Moving product from a

reserve location to a pick slot or from a storage

location to a reserve location may be necessary

to increase operational efficiency. The workers

need to know where the product is moving from,

how much needs to be moved, and where it’s

being moved. This can be easily managed with

voice and provide real-time updates to pickers

without creating skips or mis-picks.

Packing – By voice-enabling specific

instructions or priorities for packing, the process

can be integrated directly into the selection and

delivery process in order to maximize worker

efficiency and keep the orders moving from start

to finish.

Staging/Loading – Another peripheral

application for voice that can help to utilize

worker efficiency in the warehouse. Providing

voice direction to lift drivers to stack and stage

lanes as part of the inbound/outbound side of

fulfillment can help minimize errors and stops

and starts due to reading screens. Direct loading

can also be managed by voice, for operations

desiring to skip staging.

Cross-docking – Moving products from the

dock to the point of activity (e.g., piece putting) is

critical to sustaining the flow of product through

the warehouse and out to the customer. Integral

activities that are powered by voice can help

keep up with the needs and schedules of the

outbound processes while helping drive worker

efficiency and productivity. As with put-away,

cross-docking can help get the right products in

place for the next step of the fulfillment process,

helping better utilize your operators who can now

do more in less time.

Returns – An integral part of many warehouses,

managing returns can be a labor-intensive

and slow process. With voice, quickly breaking

down, assessing and delivering returns to

the right step of the process can help to

quickly update critical system information

and reduce the cost of handling returns

to help margins on those products.

Value-added services – Quickly incorporate

value-added services like tagging or labeling into

your picking or fulfillment process to maximize

efficiency and keep up with order velocity. Create

more consistent processes, eliminating the stops

and starts and removing non-value add touches.

Time and attendance – Help improve your

employee morale and eliminate time-consuming

start and end of shift operations; voice-enable

time and attendance as part of the voice

experience and get faster, more accurate data in

real time.


Determining the Cost of an Error No two companies determine the cost of an

error or the definition of an error in the same way.

Some need to retrieve, inspect and re-inventory

improperly delivered items, where others may

simply write off the incorrectly delivered goods.

Some are sensitive to the cost of downstream

lost sales, as deliveries are being made to

company-owned retail outlets. Others calculate

their costs per order (per delivery) instead of

accuracy per line item. The following information

illustrates examples of frequently reported

expense categories. While not exhaustive, they

serve as a good model of cost areas relating to

order errors that can add up and account for

large buckets of operating costs if not tracked

or improved. Many of these directly impact the

workers using the voice systems and can more

easily be measured.

Some are upstream or downstream impacts that

can provide additional savings opportunities but

may not be as easy to track. Nonetheless, they

are all examples of the further impact of voice

across the enterprise.

Administration Costs• Time is spent working with clients, validating

errors and determining the proper course of

correction

• Time spent re-issuing orders to correct errors

• Time spent adjusting existing invoices, issuing

credits and documenting account actions

• Time spent administering the return material

authorization (RMA) process

Warehouse Costs• Time spent re-picking an order

• Time spent re-packing an order

Transportation Costs• Time spent re-delivering an order

• Time spent collecting RMA items

• Return freight expenses for RMA returns, as

applicable

More Warehouse Costs• Receive returned items, updating RMA

information

• Inspecting returned items and deciding

re-inventory status

• Put-away (return to inventory)

• Update inventory information

Lost Margin and Revenue• Lost profitability from selling mis-delivered

items at an unusually deep discount

• Lost sales downstream at company retail

outlets, due to lack of product

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ROIWP | 12.17© 2017 Honeywell International Inc.

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the roi of voice picking - intelligrated · 2018-08-22 · the roi of voice picking | 2 inventory...

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