In today’s just-in-time-shipping work environment, downtime and other productivity wasters must be minimized for a warehouse/DC company to survive.
Within the material handling industry, on-time delivery is a must. If a customer places an order with a two-day turnaround expectation, being just a day late could cost you the business relationship (on average about $243 per customer). As more customers demand tighter turnaround times, unplanned downtime must be avoided at all costs.
Research group Information Technology Intelligence Consulting (ITIC) found that the cost of downtime has risen 25% to 30% a year since it began tracking these stats in 2008. Its latest survey data shows that 98% of organizations lose $100,000 for every hour of downtime and 81% of respondents say it costs their business over $300,000 an hour. One-third of enterprises report that one hour of downtime costs their firms $1 million to $5 million.