Select Key Performance Indicators (KPI's)
Receiving
- Dock to Stock hrs
- $ Value per unit received
Inventory
- Paid Inventory Ratio
- Inventory Accuracy %
- Inventory Days on hand
Order Fulfillment
- Order Accuracy
- Order Cycle Time (Hrs)
Operational
- Cost labor hours
- Utilization %
Productivity
- Units per labor hour
- Sales per labor hour
Events
ProMat 2009
January 12-15, 2009
McCormick Place South
Chicago, Illinois
Booth #'s 2303 & 2603
RILA Logistics 2009
February 8-11, 2009
Gaylord Texan Resort &
Convention Center
Dallas, Texas
IntelliNews
Spotlight on…Operational Efficiency
Companies spend millions of dollars annually to design, build, and operate distribution centers, warehouses, and fulfillment operations. These operations will experience changes to their business that will impact their customers, peers, and financial bottom line. The challenge is identifying these change indicators early and addressing them before the facility is completely out of control.
The most common indicators are present in the data analysis and trends being tracked daily, weekly, and monthly. Others are identified thru product flow observations, customer complaints, and returns. Front line associates and team members are another excellent way to identify changes early through periodic interviews and daily feedback. Finally, understanding the facility design and capabilities will aid in identifying future problems before they occur.
What are some of the common operation challenges that may be experienced? Lack of available, reliable, and qualified labor is very common. Many operations are great at training new hire associates but struggle to keep these associates long term. Poor accuracy and quality may be related to high turnover of labor and inadequate training of the new hire labor.
Where do you start?
Intelligrated® can point you in the right direction with steps to get control of an out-of-control warehouse.
Perform an operational and mechanical audit to determine if your operation is performing the way you thought. Compare operating metrics or key performance indicators (KPI’s) to others performing a similar operation or operating in a similar sales channel. Accurate measures generate useful data and are an excellent way to identify areas to reduce costs, provide insights to improve customer service, track performance on meeting or exceeding organizational goals, and improve profitability.
Look into your building's future. Identify what your operation must look like several years from now and start to address changes that need to be made today. Review what programs you have in place to improve processes. Addressing the short term goals and creating a long term plan that addresses forecasting, training, hiring, and retention is critical to creating a flexible and agile operation. Where are your opportunities for improvement – look around, they are always there and addressing them will not only keep your operation moving successfully forward but may provide you with a competitive advantage against your competition.
Copyright © 2008 Intelligrated Inc.