After working with a leading ecommerce fulfillment operation, we reviewed the key drivers for savings that led to a 15-month ROI, $8.5M net cumulative savings and some unforeseen benefits, too. Here are five savings drivers that one of our customers experienced – that just might be drivers for your operation, too.
1. Increased Pick Rates
The operation, which replaced manual pick carts and RF guns, saw a 252% increase in their pick rates in the first year. This increased efficiency enabled the operation to fulfill 15% more orders in 67% fewer picking hours.
2. Reduced Training Time
Picking associates at the operation were able to reach performance standards within hours instead of days or weeks thanks to Chuck’s intuitive user interface. As a result, they saw a consistent drop in training time: 80% to be exact. Translated into monetary savings, this amounts to more than $1000 in training costs per new hire.
3. Reduced Licensing and Hardware Costs
Because of the Chuck’s on-board RF scanner, the operation saved around $2000 per user annually on the cost of repairing and replacing RF scanners and WMS license fees connected to the scanning capabilities.
4. Reduced Packout and Replenishment Costs
5. Reduction in Picking Errors
By switching to a directed picking approach using optimized picking paths, put-to-light technology and a user-friendly digital interface, the site reduced their picking errors by 30%, leading to an estimated savings of $500,000 across internal order auditing and rework costs in the first year alone.
Download the white paper to read about the full economic impact of collaborative mobile robotics as well as four more savings drivers that one site experienced after implementing 6 River Systems in their operation.