Sample calculation
A company sends several shipments around the world everyday. Due to human factors, three erroneous deliveries are sent to customers everyday. Correcting one shipment and making a credit note takes about one hour from different people. This means that the company spends annually 720 hours on erroneous deliveries, which means €18,000 measured in money (labour costs and incidental costs €25).
If the average price of cargo in one direction is €50, extra cargo costs are generated annually in the amount of €72,000.
Cutting down even one erroneous delivery would bring the company savings of €30,000 annually!