𝑾𝒂𝒓𝒆𝒉𝒐𝒖𝒔𝒆 𝑺𝒖𝒄𝒄𝒆𝒔𝒔 π‘΄π’†π’•π’“π’Šπ’„π’”

Its always said that “What you can’t measure – You can never improve it”. Same goes true withΒ #warehouse_managementΒ as well.

This week in next couple of posts let’s look at some of the key performance indicators for warehouse management and how they impact the bottom line of the organisation.

Warehouse KPIs determine how efficiently we turn a profit. We probably already have a software package that compiles data & analyzes information. What we do with that information may determine the success or failure of our business.

1. π‘°π’π’—π’†π’π’•π’π’“π’š 𝑻𝒖𝒓𝒏𝒐𝒗𝒆𝒓 – This measures how many times per year the warehouse goes through its entire stock. A high turnover rate means you’re doing something great. Products flow in & out readily and without any hitches. A warehouse management system lets you figure out weak points in your inventory before things start to sit there for a long time.

2. π‘©π’‚π’„π’Œ 𝑢𝒓𝒅𝒆𝒓 𝑹𝒂𝒕𝒆 – Back order rate shows how hard it is for you to fill orders. When demand spikes, you may see temporary back orders. If back orders become a long-term problem, you have to figure out why – before you have unsatisfied customers.

3. π‘°π’π’—π’†π’π’•π’π’“π’š π‘¨π’„π’„π’–π’“π’‚π’„π’š – Inventory accuracy is extremely important if you want to fill orders properly. If your accuracy isn’t high, you might lose a lot of customers because you don’t have anything in stock when your computer says you do have something there. Items connected wirelessly update your computers instantly to keep your inventory accurate. Large operations need technology to produce accurate numbers.

4. π‘°π’π’—π’†π’π’•π’π’“π’š 𝒕𝒐 𝑺𝒂𝒍𝒆𝒔 π‘Ήπ’‚π’•π’Šπ’ – Your inventory to sales ratio changes depending on the economy and how your company gets through disruptions. Predictive analytics software lets your managers figure out a way to get through cash flow problems in the future. An inventory to sales ratio can prevent back orders as well.

5. 𝑢𝒓𝒅𝒆𝒓 π‘·π’Šπ’„π’Œπ’Šπ’π’ˆ π‘¨π’„π’„π’–π’“π’‚π’„π’š – Inaccurate orders leads to more returns, dissatisfied customers and less sales because clients go elsewhere. In today’s high-tech world of online ordering, a world-class accuracy order rate is 99.9 percent.

6. π‘»π’“π’–π’„π’Œ π‘»π’Šπ’Žπ’† 𝒂𝒕 𝒕𝒉𝒆 π‘«π’π’„π’Œ – Also called as turn around time. Everything within your warehouse needs to leave your unit to be profitable. If a truck spends too much time at the, dock it identifies possible staffing problems, low inventories, infrastructure or some kind of handling difficulty. Trucks should spend the least amount of time at the dock as possible so another truck can come in and load or unload.

We shall continue discussing theseΒ #warehouse_KPIsΒ and till then for all your warehouse operational efficiency related issues do reach out toΒ Synergeze Consultants Private LimitedΒ and we shall be glad to assist you. Till then followΒ #gccoach

Small businesses at times seems to be ignoring many a thing, by just treating them as one more jargon in this new age of super complicated words and synonyms. Process Re-Engineering can be a game changer to businesses, as it can perform miracles on a failing or stagnant company and open new doors for a company on steady path of growth. However, the process is tricky and needs some pain-killers to supress the pain of change and pain of tearing down what we are used to and feel comfortable with. If ignoring this was a mistake, the next big mistake could be to settle for a cheap and basic process re-engineering tool in absence of an expert guidance. It could be that you tried saving a cent and lost a dollar. We atΒ Synergeze Consultants Private Limited, help businesses to implement the changes in an ongoing manner without effecting the current operations in any way and yet delivering the desired results. To learn more about our standardised approach which is customized for every single business please reach out to us. If you wish to be more profitable and save on all forms of costs – Your destination is our name – Synergeze Consultants Private Limited.
Share
Linkedin

Related Blogs