HOW TO MEASURE WAREHOUSE PERFORMANCE

Perfect Order Percentage • has the right amount of the right products • is damage free • arrives on-time • arrives at the right location • is filled completely on the first call • is entered correctly • has no invoice/collections errors

• 97% • 98% • 93% • 96% • 72% • 94% • 93% 48%

IS PERFECT:

There are many lessons in this little exercise. First, you may not even track performance in the nine activities described above. It is difficult to improve something that you don’t measure. Second, you may not recognize the interdependence of these activities. They all contribute to the ultimate logistics objective of filling a customer order. Revenues flow from filling customer orders. An integrated view and assessment of these activities is one step on the path to world-class logistics. Third, you may not believe how low the number is. Though there is not a published industry standard for perfect order performance, most companies fill 50% or less of their orders perfectly. If you want to know why your customers always seem dissatisfied, here’s the reason.

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