Does Your RFP include Scanning? Can you say $66,300
Of course it does. Scanning is as much a part of the pool distribution induction as the actual cartons coming off the truck. Induction scanning creates an inventory log, identifying each carton as it enters the warehouse. From there, each scan allows for tracking throughout the course of the delivery. For most 3PL’s the number of scans will be determined by the retailer. In a perfect world this scan would create an OS&D, track movement, and provide delivery information. Again, in a perfect world this would lead to better invoicing and better account receivable processing.
But does it really and what are the costs associated with scanning?
Using general knowledge, scanning costs add greatly to the cost of handling. Did you know if you direct the 3PL to scan, the cost of the software adds about 9 cents to each carton cost. If you have 2500 cartons in a trailer you will add $225.00 to each load. Now add labor. A warehouse associate will spend on average two hours scanning at induction. Or a cost of Two cents per carton. So, scanning at the pallet level, scanning at the outbound level, and scanning at the delivery will add about twelve cents in labor to each carton. The math reads like this: 9 cents to the software company, plus 8 cents to labor per carton. $.17 per carton, or $425 per trailer.
If you induct 7500 cartons per week, the associated cost will add $66,300 to your transportation costs.
Let’s work together and reduce costs where they can be reduced, be more efficient and improve accounts receivable. Now that is a win-win.
Please check out Rebel Logistics and let’s talk efficiencies and costs. There are savings to be realized.
