Out of all the different tasks you complete in your materials handling operation, order picking is by far the most expensive. When you look at the cost involved with handling 1000kg of goods in different stages of the materials handling process, the contrast becomes clear.
Loading and unloading is quite cheap – in this example, we can put the cost of handling 1000kg at around £1- £2, depending on the equipment you use. Putting away and retrieving goods takes slightly longer, and the cost of handling the same quantity of goods is around £10- £20. However, picking 1000kg of items can cost up to £100, simply due to the amount of labour required.
If you’re looking to make your operation more cost-effective and efficient, it makes sense to focus on improving your order picking.