Best Business Practices - The Triple Check System. Checkpoint 1 – We introduced the first checkpoint when we discussed Order Entry. An automated email or fax order verification form to be sent to the client. This Order Verification form confirms that the order was correctly understood and properly entered into the system. Without this early checkpoint 49% of common errors cannot be corrected until they are caught by the customer at delivery. Checkpoint 2 – Checkpoint two is our main focus this issue and is a critical point in your business. Your investment in personnel, software, and processes must work together for this to succeed. At this point your employee must: | Confirm Item Pick | Weigh/Record Catch Weights | | Calculate Pricing | Check Catch Weights | | Write Invoice | Adjust for Shortage |
- Step 1) Confirm Item Pick and Weigh/Record Catch Items: There are several options available here depending on your inventory types, volume, and warehouse layout. Whether you use a manual keystroke, checkout style scanner, or integrated weighing station the important point is that the picked items should be checked against the confirmed order in the system NOT a copy of the original pick ticket. By checking against the confirmed order you can discover if there was a late ad, change of spec, or correction to the ticket that might not be reflected on the copy you have.
- Step 2)Check Weights, Calculate Pricing, Write Invoice: A well designed system can take catch weights for each item compare to allowable variances, calculate pricing automatically, and generate an accurate invoice. This step relies heavily on how well you have automated the repetitive mathematical tasks best suited to being done by a computer. Distributors with high levels of catch weights may wish to print individual catch weights on Invoices or Bills of Lading to allow for the third check on catch weights at checkpoint 3.
- Step 3)Adjust for Shortage or Found Errors: We're looking for errors, so you need to be ready when one is found. Employees running the checks must be able to generate missed pick labels, order rush cuts or processing to fill the order, or contact the customer regarding shortage. Procedures to correct the errors should be clear, and when possible include steps to track backward to where the error originated.
Checkpoint 3 – Checkpoint three in our revised system is the truck. The basic rule of this checkpoint is the truck doesn't move, till the paperwork is complete. Whether you own trucks, or use a 3rd party trucking service materials being loaded onto the truck must be checked against a shipping verification form or bill of lading, and materials coming off the truck must be checked against the customer's invoice. We'll look into this a little further as we wrap up the topic next week. By diligently following through with checkpoint procedures you accomplish two important goals. First by putting a second set of eyes on the work you reduce the remaining picking "human errors" by an average of 90%. Second we have eliminated human calculation and lookup errors in our invoicing. Take a look at thinking inside the box to see how this affects our savings goals. | Thinking inside the box:
 Our sample company:
$2.5 million in revenue
15 Orders Per Day
10 Line Items Per Order
Losing $26,325 Correcting Mistakes Human Error In Picking and Cutting and Assembly. $1,052 Remaining Errors $3,159 In Invoicing Errors 90% Improvement from
Triple Check System and
Computer Generated Invoice
= $3790 in Savings Our Progress So Far: Savings Goal: $26,000
Saved so Far: $19,690
$4000 in improved stocking
$2600 in improved order entry
$8250 in improved picking labels
$1050 in eliminated human errors
$3790 with a triple check |
