HOW TO MEASURE WAREHOUSE PERFORMANCE

It pays to measure…. to a point.

We monitor the number of performance measures our clients and research participants track in various categories of metrics including finance, productivity, quality, cycle time, and safety. We recently correlated the number of metrics monitored with the performance of the warehouse relative to the other warehouses. In each case, the categories the correlation was the same; the greater the number of metrics monitored, the better the performance ; up until the monitoring itself yielded too many and therefore meaningless metrics. The “ideal” number of metrics for any category of metrics seems to be SEVEN ; which, like pre-area code phone numbers, is not coincidentally the number of numbers that humans can remember about anything.

RightChain™ Incorporated | Supply Chains. Solved.

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