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Picking with Impact: Best Practices for the Quality Improvement and Cost Minimizing of Consignment in the Logistics of an International Manufacturer
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Author(s): Matthias Lederer (University of Erlangen, Germany), Ferdinand Niedermeier (University of Erlangen, Germany)and Jan Hoppe (REHAU AG+Co, Germany)
Copyright: 2016
Pages: 17
Source title:
Handbook of Research on Global Supply Chain Management
Source Author(s)/Editor(s): Bryan Christiansen (PryMarke, LLC, USA)
DOI: 10.4018/978-1-4666-9639-6.ch027
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Abstract
The picking process in warehouses is an important step in global supply chains because it causes significant costs and has a high impact on customer satisfaction. Especially manual systems may cause high costs and can generate many picking errors such as type and quantity failures. Using the example of consignment at an international manufacturer located in Switzerland, this contribution provides in-depth fundamentals on picking processes. The picking system, typical workflows of manual picking procedures and theoretical considerations of optimal picking quality are given. Using a quality cost as well as a process cost analysis and a cause and effect analysis, the picking process is investigated in this scenario. It turns out that the optimal picking quality is surpassed in the case, which requires a systematic process re-design in order to cut costs. Therefore exemplary technical, organizational and soft best practices are shortly presented. In the scenario a business and technical case of the introduction an innovative weighting system is described.
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