How to Measure Warehouse Performance

Warehouse Performance, Cost, and Value Measures

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Figure 1. RightChain™ Warehousing Scoreboard Summary Screen

2. Workforce Facing Metrics: A Great Place to Work One of the most important features of our RightChain™ Metrics model is to encourage and serve the warehouse workforce with a great place to work. A great place to work is safe, naturally well lit, operates with a high cross functional percentage, operates with a healthy operator to supervisor ratio, and is evidenced by a high retention rate of high-performance workers. 2.1 Safety There are two basic reasons why workers leave for another workplace; they feel unsafe and/or under-valued. Physical safety is the most basic provision organizations should provide for their warehouse workforce. Two very simple measures of warehouse safety are the man-hours worked between each accident, and the man- hours worked between each lost-time accident. We monitor both for each warehouse activity and for the warehouse as a whole. 2.2 Cross Functionalism Another reason workers leave warehouse operations is boredom and injury due to repetitive tasks. By educating and encouraging workers to qualify for and work in multiple functions boredom and repetitive tasks are mitigated and overall staffing requirements are reduced. Cross functionalism measures the percent of operators in a given area that are trained to work in multiple functions.

World Class Warehousing™