The costs of NOT having a warehouse system

The costs of NOT having a warehouse system

Have you dismissed the idea of implementing a new, more up-to-date warehousing system in your business because you think it would be expensive? Think again. The costs of not having a warehouse system probably more than you think.

Let’s consider what happens when your outdated, somewhat flawed warehouse system leads you to send out the wrong item to a customer.

On the face of it, there’s just the time and delivery costs of sending out a replacement item, and possibly some additional costs for retrieving the incorrect article.

And what’s the apparent outcome? Seemingly, an unhappy customer is finally satisfied, and although they might have waited longer than they had anticipated, they do eventually receive the correct order.

But, there’s more to it than that.

That customer may not order from you again. They may also post negative reviews about your service on their social media, potentially influencing hundreds or thousands of friends and contacts. After all, it’s well known that we’re more likely to voice our disapproval with a company when something goes wrong, than to praise them when something goes as expected.

Costs of not having a warehouse system

So the cost to your company of having to replace that product isn’t just the costs associated with physically replacing it. It could also be the cost of the loss of a sale; the loss of that customer’s business. And it could likewise lead to the loss of many potential other sales as a result of any bad exposure that customer gave to your organisation or brand.

Accuracy in the first place leads to repeat orders, and to happy customers who are apt to recommend you in person and on their social networks.

Consequently, the importance of IT for warehousing and distribution revolves firmly around the need to supply accurate orders.

So, what’s the moral of our cautionary tale? Having a suitable, accurate and effective warehousing system – regardless of initial cost – could be worth more than you think.

Don’t miss out on future sales. If you would like to find out more about the systems that Balloon One could help your business with, please get in touch.

 

 

 


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