Rooting out the root causes of order fulfilment errors: a multiple case study

Abstract

ABSTRACT While recent technological advancements have enabled improved performance in warehouse operations, companies still struggle with eliminating errors such as incorrect/damaged items or the wrong quantity sent to customers. Such errors result in inefficient resource use, costly returns handling, and customer dissatisfaction. Despite the importance of errors, current knowledge of the underlying causes is limited. This paper addresses the gap by investigating error causes through a relatively new technology – intelligent video analysis (IVA), an additional tool for analysing warehouse operations. A multiple case study involving companies that have implemented IVA in their outbound warehouse operations (i.e. order picking, packing, and sorting) was conducted. This study is the first to investigate implementations of IVA, offering novel empirical insights into error root causes. It shows how many errors reported by customers are actually not made by humans in outbound warehouse operations but are attributable to faulty customer claims, inbound warehouse operation errors, and malfunctioning technology. This study offers interesting insights into the interaction of various technical, organisational, and human factors, thereby contributing to the literature on sociotechnical systems and the human-centric Industry 5.0. Finally, the study outlines a way forward for managers to address and further reduce errors occurring in warehouse operations.