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The 4 Categories to Calculate ROI Pairing a WMS with mobile barcode scanning technology further increases operational efficiency and accuracy by automating data entry. Another cause of mispicks is inaccurate receipts, putaways, and failure to record moves in the warehouse, all of which can be improved with mobile in the warehouse. With a mobile barcode scanning workflow, pickers must scan the barcode of the item they are picking to ensure that they found the correct item without having to read or input long SKUs and/or serial numbers themselves. Mobile barcode scanning drastically reduces picking time, including putaways, and failure to record moves in the warehouse, in addition to creating more accurate receipts faster. Questions to ask: • How many hours a day per employee are spent on picking? • How many mispicks get reported monthly? • How much time does it take to address any mispicks? • What is your average cost of a mispick? • How many hours will picking orders take once implementing a WMS? Picking Savings = Hours Saved Monthly x Average Hourly Warehouse Worker Wage In the example calculation below, we estimate that picking with a WMS – especially a WMS with mobile barcode scanning – reduces the amount of time spent picking from 8 hours a day per worker to 6 for a total savings of 2 hours. We also estimate that using a WMS will reduce your monthly mispicks by half, though the actual savings on mispicks could be much higher. This figure is added as additional mispicks savings in the tables below: extensiv.com | 833.983.6748 6

3PL Guide to Calculating ROI for Warehouse Management System Software - Page 6 3PL Guide to Calculating ROI for Warehouse Management System Software Page 5 Page 7

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