So it’s efficiency you want?
Well, that’s exactly what we have for you.
Here are some methods for being more efficient when you pick and pack product for fulfillment:
1. Optimize Employee Travel Time
Around 60-75% of the fulfillment time for any one order is spent by the employee walking to locate the product, and then walking back to actually pack it.
Figure out your sales volume per item. Then, group that into batches of 10%. For example, 50 items make up 10% of your sales, 60 make up the next 10%, and so on.
Then, simply place the highest-volume items closest to your employee packing stations.
And of course, factor in seasonal and market trends as best you can along the way.
That’s your greatest opportunity for savings.
2. Now You Can Optimize Your Packing Materials
Keep that dim weight down! Now that you know what sells most frequently and have placed it nearest your packing stations, optimize the materials for packing.
Have the right-size boxes on hand so you don’t have to fill extra space with dunnage of any sort, which drives up your material costs and shipping costs too.
3. Bulk Material Acquisition
Bulk purchasing always gets you the lowest costs. That’s the obvious thing to do.
But the problem that can lead to is a lack of space in your warehouse.
Can you negotiate just-in-time material delivery from your packing material supplier?
Or, can you acquire or outsource additional storage space to hold those materials at reasonable costs?
4. Reduce Associate Turnover
Replacing the average associate routinely runs $3,000 – $10,000. Skilled and experienced associates often run much more.
Yeah, it’s shipping. And yes, lots of people can do it.
But, you can make the process work best (and save yourself a ton of stress and money) by learning why associates leave and taking the time to create an environment that retains the best associates.
When there’s no conflict between you and your associates, your productivity skyrockets.
5. Where Does Automation Fit In?
Can you use machinery to automate your box assembly?
Yes. It has a significant cost up-front. However, if you calculate the cost of labor for packing, material costs, and shipping costs, you may find a reasonable time for realizing a positive return-on-investment.
6. Hire Consultants
Overwhelmed? Not sure you’re analyzing all the opportunities for efficiency gains?
Then consider finding a consultant you trust to help with your analysis.
You may make a game-changing discovery.
It’s always worth your time to find ways to increase your revenue using growth strategies. But small efficiency gains in packing over time can lead to significant savings over the years as your business grows.