𝑾𝒂𝒓𝒆𝒉𝒐𝒖𝒔𝒆 𝑺𝒖𝒄𝒄𝒆𝒔𝒔 𝑴𝒆𝒕𝒓𝒊𝒄𝒔

Its always said that “What you can’t measure – You can never improve it”. Same goes true with #warehouse_management 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. 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 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. 𝑩𝒂𝒄𝒌 𝑶𝒓𝒅𝒆𝒓 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. 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑨𝒄𝒄𝒖𝒓𝒂𝒄𝒚 – 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. 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝒕𝒐 𝑺𝒂𝒍𝒆𝒔 𝑹𝒂𝒕𝒊𝒐 – 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. 𝑶𝒓𝒅𝒆𝒓 𝑷𝒊𝒄𝒌𝒊𝒏𝒈 𝑨𝒄𝒄𝒖𝒓𝒂𝒄𝒚 – 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. 𝑻𝒓𝒖𝒄𝒌 𝑻𝒊𝒎𝒆 𝒂𝒕 𝒕𝒉𝒆 𝑫𝒐𝒄𝒌 – 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 these #warehouse_KPIs and till then for all your warehouse operational efficiency related issues do reach out to Synergeze Consultants Private Limited and we shall be glad to assist you. Till then follow #gccoach