So much of what we do centers on becoming more efficient. We call out “Hey Google” (or Alexa or Siri) so we can queue up music we like, navigate to a new place, or read the next step in a recipe without having to stop whatever else we’re in the middle of doing. We buy fuel-efficient vehicles so we can travel farther on fewer gallons of gas. So, it comes as no surprise that our work should be more efficient, too—not only to benefit the workers, but the bottom line of the company as well. After all, the more we can do in less time, the better.
Warehouse efficiency is no different, although measuring it can sometimes be more of a challenge. Take a look at these three types of metrics that can help you measure efficiency in your warehouse. How many are you implementing today?
Covering It All With Umbrella Metrics
When it comes to an incorrect order, the customer doesn’t care what went wrong where in the process, they just want it fixed. But, in order for your team to reduce the likelihood of the error happening again, it’s important to uncover just what needs to be corrected.
Warehouse management systems can track all orders as a big umbrella. From there, each order can be broken down and tagged with more information on the specific error, including accuracy issues, out-of-stock products, late deliveries, or damaged products. The big umbrella statistic lets you see the error from the customer’s experience, but fix it from the internal perspective.
Make Improvements Through Productivity and Labor Metrics
Warehouse management systems are great at tracking productivity and labor metrics. Some of what you can expect your system to track include:
- Fill Rate: How many items are being picked compared to the number of items ordered?
- Order Accuracy: How many items are correctly scanned in and out of bin locations?
- Shipping Timeliness: How many orders are filled and shipped according to promised delivery dates?
- Downtime: How much time is there between items picked, and is this based on bin location?
Not only do these metrics tell you how your team performs under a variety of workloads, they also reflect how well the warehouse is organized. Misscanned products, shelf IDs, and purchase orders can cause accuracy errors, while excessive downtime or orders that are waiting too long to ship after being completed may indicate where improvements can be made in the warehouse’s organization.
Track Non-Staff Complications With Stock Metrics
Some order issues have nothing to do with your staff and
everything to do with your stock. The right warehouse management system will
look at complications from items that are:
- Out of stock. Backordered items can cause a customer order to get held up.
- Expired. Looking at how long products are in your warehouse and whether you’re holding to FIFO or other policies can prevent expired products from accidentally being shipped.
- Missing. If an item is not where it is supposed to be, your system may reflect there is inventory when the bin location is empty. This also falls under accuracy measurement.
- Seasonal. Product demand ebbs and flows along with the seasons. Your WMS can look at trends according to season to ensure the right items are in stock to match the timely demand.
Boost Efficiency Measurements With ASI
Measuring warehouse efficiency moves from the top down, starting with how your customers are experiencing your services. Having the right warehouse management system in place can be key in measuring the right metrics for efficiency. ASI has more than 30 years of experience pairing businesses with the right software services and support to measure metrics and improve efficiency. We’ll take the time to get to know your business in order to understand your exact needs and how to meet them with a customized software solution plan. With ASI, you can be confident that you are getting the right expertise in place to measure all your warehouse efficiency needs.
Get started tracking your warehouse efficiency metrics today. Contact us for a FREE consultation!