How to Measure Warehouse Performance

Warehouse Performance, Cost & Value Measures

21

Productivity

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Safety

Storage Density

3

3

2

3

4

Warehouse Order Cycle Time

Inventory Accuracy

3

Current World-Class

4

Dock-to-Stock Time

Shipping Accuracy

Figure 24. Example Warehouse Performance Gap Analysis In the example, the warehouse performance indicators are productivity (lines per hour), storage density (case storage capacity per square foot), inventory accuracy, shipping accuracy (% lines shipped in error), dock-to-stock time, warehouse order cycle time, and safety. In the example the annual savings opportunity for attaining world-class warehousing is $3.7 million per year, leading to a justifiable investment in a RightChain™ Warehousing initiative of $7.4 million.

© Dr. Ed Frazelle, Author, World Class Warehousing | ALL RIGHTS RESERVED