As we mentioned last week whether you own trucks, or use a third party service it is critical that a truck does not move until the paperwork checks are complete. Loading: This is the last chance to catch an error before it leaves your warehouse and costs to correct a mistake skyrocket. If you have been following our study from the beginning you notice that we have set the stage for a quick but thorough check. - Confirm all orders are present – a report of orders to be delivered by route should include a summary of all items to be delivered by that truck. Presenting the driver with a complete list prevents omission of an individual invoice or bill of lading (often occurs when a single customer has two separate "orders" awaiting delivery).
- Check each order to be complete and correct – as the pallet is loaded each order should be checked against the summary list. Item IDs and Quantities (easily checked and verified by the pick labels) should be compared to the route summary list.
Unloading: While correcting an error inexpensively may not be possible on the customer's dock, catching the problem while you have the driver on hand prevents strained relationships caused by the uncertainty of "disappearing" product. - Confirm all orders are unloaded – The most common error reported in unloading is "missing" an invoice while unloading. By comparing to a route delivery report rather than individual invoices a driver can easily see if there are additional orders that should be unloaded before moving to the next stop.
- Confirm Item ID, Quantity, and weights against Customer Invoice (best done with the customer) – Improvements in handling and packing materials have dramatically cut the number of errors from products coming "loose", but thorough inspection of the unloaded merchandise prevents wasted trips and "extra" product sitting in the truck at the end of the run.
In many cases by strictly adhering to route summary verification sheets and conscientiously checking against customer invoices loading and unloading errors can be reduced by 95 to 99 percent. If you use 3rd party carriers one of the major factors in selecting services should be their ability to work with your best business practices for order delivery accuracy. In our thinking inside the box you'll see our savings calculations have been added. By checking for accuracy loading and unloading we have directly reduced the costs associated with the "shipping" errors. We have also completed the best business practice triple check on our order. | 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 Errors from Loading and Unloading.
$1,580 95% improvement from
Completing Paperwork Check
Route Summary Checklists
Detailed Customer Invoice Savings $1,500 Our Progress So Far: Savings Goal: $26,000
Saved so Far: $21,190
$4000 in improved stocking
$2600 in improved order entry
$8250 in improved picking labels
$1050 in eliminated human errors
$3790 with a triple check
$1,500 in improved shipping |
