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【Company Introduction】
Tingtong Logistics is a comprehensive third-party logistics company, relying on Master Kong’s high-density domestic logistics network and ITOCHU Corporation’s advanced logistics management experience to provide customers with high-quality warehousing, distribution, logistics consulting and logistics processing services. At present, Tingtong Logistics has established regional independent companies in East China, North China, South China, West China and Northeast China, and has 59 logistics distribution centers nationwide, providing high-end and professional logistics for nearly 100 well-known domestic and foreign customers. Serve.
【Project Background】
Business development encounters bottlenecks
With the rapid development of the logistics industry, Tingtong Logistics has established two major service systems, platform type and customized type, on the basis of standardized and efficient operation based on its unique management style.
As the business volume continues to rise, the problems have become more prominent. More and more orders, more and more shipments, but lower and lower profits; more and more items in inventory, more and more operating modes of self-operated stores and franchise stores, and more and more shipments and exchanges. How to ensure the accuracy of shipments becomes more frequent; warehouses are getting larger and farther away from the city, and how to maintain the timeliness of shipments has become a significant problem. At the same time, it cannot be ignored that my country’s logistics costs are still maintained at around 18%, in sharp contrast with the 12% or even lower costs in developed countries in Europe and America.
【solution】
Vocollect voice picking system
Tingtong Logistics Group has jurisdiction over 59 logistics distribution centers in 54 cities across the country. The company’s average monthly shipments exceed 20 million boxes. With a huge distribution network and business volume, high-quality operation cannot be guaranteed without an information platform.
In response to the high logistics costs, Zhang Yu, sales director of Tingtong Logistics, pointed out: “For warehouse operations, sorting is the focus of cost control.” However, Tingtong’s important customers have a strict set of warehousing operations. Requirements, especially for sorting efficiency and shipping accuracy. At the same time, in the face of the continuous increase in labor costs in my country today and the high mobility of logistics personnel, Tingtong has decided to reduce labor costs and ensure the consistency of work efficiency and accuracy between new and old employees after comprehensive consideration. The pick-by-box and pick-by-piece processes of Shanghai Huangdu Logistics Center are introduced into the Vocollect voice picking system.
Huangdu Logistics Center, located in Jiading District, Shanghai, was established in 2006 with a warehouse area of approximately 60,000 m2 and 300 employees. It is a comprehensive logistics center that provides warehousing and distribution services for fast-moving consumer goods, cosmetics and e-commerce businesses.
【Customer benefits】
The effectiveness of the voice picking system
1. Increased accuracy
The Vocollect system requires that the product’s serial number and expiration date be confirmed before issuing a picking instruction. The operator can confirm what to pick and how many items are picked according to the voice prompts, thus effectively avoiding wrong picking and random picking. After instructing the operator to pick the product at a specific location through voice commands, the operator will first read the product’s serial number to the system, and then read the expiration date to confirm that the selected product is correct and meets customer needs. When the serial number or validity period returned by the operator does not match the data of the background system, the system will prompt the product to be incorrect, which effectively avoids the error and improves the accuracy of employee sorting.
Tingtong made a comprehensive comparative analysis of the accuracy of manual sorting and voice sorting: only two months after the introduction of the voice system, the sorting accuracy has reached 99.87%, and the error rate has been significantly reduced by 88%. Because the cosmetics retail industry needs to guarantee deadlines and improve accuracy, Tingtong can better meet the strict requirements of many well-known customers for warehousing operations.
2. Enhanced operability
In the past, training for new employees ranged from familiarization with warehouses to picking operations, ranging from weeks to days. Since the introduction of the Vocollect voice picking system, the training of new employees only takes half a day, and independent operations in the library can be achieved (recording template 30min, picking exercise 2h). According to the actual situation, the work efficiency of new and old employees can even be basically equal. The staff responded well to the voice sorting system, which not only improved the work efficiency, but also made it easier and lighter to work.
3. Speed up picking
The introduction of the Vocollect voice picking system has greatly improved the work efficiency of employees. According to Tingtong statistics, the number of picking lines per capita has increased by 59.89%, the number of picking per capita has increased by 35.66%, and the efficiency of the number of shipping boxes has increased by 11%. Nowadays, we will no longer see such a scene in Dingtong’s warehouse: employees hold the sorting receipt in one hand, make manual records at the same time, and move the goods with the other hand. If the goods are relatively heavy items, it will be more difficult and the speed will be higher. Very slow, even causing damage to the goods.
Using voice picking only needs to listen with ears, and both hands can move the picked goods freely. As the employees’ hands (no need to hold the phone, keys or write) and eyes (no need to look at the screen and paper) are liberated, the work of the employees is easier, and the work efficiency is also greatly improved.
4. Real-time operation and real-time management
The voice system can accurately track the completion of each operation and instruction, so that the manager can grasp the operation of each employee in real time. Now, managers can accurately point out the order by whom, when, where, and in what quantity. Managers not only have an accurate understanding of the manpower required to complete daily orders, but the extensive information of each operation is an excellent tool for them to do business guidance and management.
Quick return on investment
Regarding the return on investment of the voice picking system, Director Zhang Yu said: “The operational efficiency and accuracy of the Vocollect voice system after it went live has reached the original forecast. We plan to recoup the investment by saving employment costs within two years to create greater benefits. “In order to improve service quality, Tingtong has been committed to cost improvement and efficiency improvement. According to the sound actual application of the voice picking system, Tingtong plans to gradually apply the voice picking system to other logistics centers to better achieve business docking.
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