Measurement inaccuracies causing havoc
There isn’t a company out there that wants to experience revenue loss due to measurement inaccuracies. But with $400 billion worth of goods being sold on the basis of measurement in Australia, there is a lot of room for error and inefficiencies.
Measurement inaccuracies in the Australian transport and logistics industry can severely affect companies’ profits; with the costs involved in the shipping and delivery of goods being entirely dependent on measurements.
While a consumer may not feel the pain of having to pay an extra for a package that has been incorrectly weighted and measured, the financial losses are felt on a much larger scale. Thousands of incorrect measurements like this however will cost distributors and carrier companies who depend on correct measurements to optimise their use of space, number of loads and in turn, reduce costs.
The transport and logistics industry is worth more than $150 billion to the Australian economy, but carrier companies lose hundreds of thousands of dollars in revenue due to inaccurate measurements of packages.
Technology to the revenue rescue
The National Measurement Institute (NMI) regulates measurement accuracy across varying industries in Australia in the hopes of ensuring businesses ‘get what they pay for’ – meaning no loss in revenue or cost. However despite their efforts, they have had to issue 2,388 organisations with non-compliance notices for measurement and labelling accuracy.
A flaw in the system always calls for a calculated solution, and in the world of evolving technology designed to improve productivity, accuracy and efficiency, there is a way to recover this lost revenue – or at least stop it from continuing to occur.
The cost of human error within postal and delivery companies is too great to be afforded in the economy that Australian businesses operate in. Thus, an automated system has been designed to aid revenue recovery, capture data for automated generation of transport documents and provide accurate measurements for load optimisation.
A SICK Solution
SICK’s Dimensioning, Weighing and Scanning systems (DWS VMS 420/520) automatically enable an accurate price to be charged, based on either the weight or the volume. This eradicates the need to rely on inaccurate customer-declared weights and dimensions to calculate charges from. The capture of correct weights and dimensions allow all parties involved to charge and be charged accordingly.
With the ability to reduce revenue loss by $250,000 within 12 months for clients handling thousands of packages per hour using a SICK DWS system, rapid revenue recovery can benefit all sizes of parcel and package carriers.
For more information on SICK’s DWS system and recovering lost revenue within your company, visit www.sick.com.au or download their whitepaper here.