the high cost of errors

The High Costs of Errors

It just happened again. Different company this time. A package was delivered to my door, but it wasn’t for me. And I wasn’t even sure of the location of the house. It wasn’t close by. Upon reaching out, the company told me to keep it or donate it. So it went in the donation pile for the next time I make a drop off.  The people are always nice through the process. But, it’s clear that the cost of picking up the package and returning it or redelivering it is more than just sending a new one. Errors are costly.

Some companies keep a close eye on errors and try to reduce them. But many companies don’t. And the cost gets buried in cost of sales. Whether it is rework for a services business, manufacturing errors, damage in shipping or shipping to the wrong place, those errors can add up fast. If you don’t already, why not keep track of error rates and work on getting them down.

Posted in Customers, Financial Management, Leadership, Strategy.