3PL Logistics Company fixed issues with product item master data that were holding back automation.

ISSUE
40% of daily orders going to hospital repack station

SOLUTION
Perfect Item Master

”Getting our item master data right was the key to everything else working. Our automation investment finally started delivering the ROI we expected.

Cole K.General Manager

CASE STUDY

A 3PL logistics company site had bad product dimensions. Most items showed 1 x 1 x 1 dimensions in their product item master. This put a big strain on their automation investment with Locus Robotics.

The company experienced a 40% hospital repack rate on daily orders. Cancel-and-reallocate orders also exceeded 20%, pushing their two-year payback period past ten years.

We ran a workflow analysis and placed a vMeasure Ultima Pro at the warehouse’s repack station. Then, over a three-month period we helped staff capture dimensions for every product. This work created a Perfect Item Master in packchain, and accurate product dimensions fixed the core issue.

Hospital repack rates dropped from 40% to under 1%. Cancel-to-reallocate orders also fell below 1%. The 3PL reduced four full-time labor equivalents through normal attrition and unlocked their investment in robotic pickers.

Efficiency Gains

97

%
Reduction in daily orders sent to repack station

Annual Savings

$

240,000

Four full-time employees via attrition