Today we live in a time when reducing expenses becomes a very important task. That is why in logistics, optimizing the order preparation system is essential to save on hidden costs in distribution.
The review of workflows and the commitment to new technologies and automation are necessary actions. So that warehouse performance is improved. Also as a measure to reduce errors in picking processes. These with some of the content that you can study in our logistics course.
Another important fact is that the distribution centers lose an average of 291,000 euros due to errors in order preparation. The automation of the distribution center and the adoption of new technologies would make the facilities more profitable by reducing hidden costs in distribution.
Examples of hidden costs in distribution
One of the main errors we have found is that each worker (per 8-hour shift) can lose an average of 15 minutes. This due to inefficient processes. Figures that in a medium-sized warehouse with 50 workers, means losing 3,000 hours a year. A figure that can increase in work centers with more staff.
Thus, if a program is established in which workflows are reviewed, these wastes of time could be efficiently reduced. It is, for example, to reduce the number of tasks of the operator. Consider replacing batteries halfway through or using a device for a variety of tasks.
On the other hand, we can talk about reverse logistics as another trend to reduce hidden costs in distribution. It grows in popularity as companies seek to manage return merchandise within the supply chain. Always looking for speed to reduce the impact on the bottom line.