How to Measure Warehouse Performance

Warehouse Performance, Cost & Value Measures

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2.3 Operator to Supervisor Ratio Several years ago the crazy idea called “self-directed work teams” crept into business culture. The implementers quickly discovered that all teams need direction. The reason I bring this up is that there is an optimal level of direction for any activity, including each warehouse activity. In our benchmarking research we have found that an operator to supervisor ratio between 8 and 12 yields optimal performance.

Figure 2. RightChain™ Warehousing Scoreboard Workforce Screen

2.4 Retention In our annual survey on concerns for warehouse managers for the last 20+ years the two primary concerns have always been the same – turnover and aging. The impact of turnover on warehouse productivity and quality is grossly under estimated. In our recent survey we correlated turnover rates with our Warehouse Quality Index (WQI). The correlation is strong and unmistakable. Retaining high-performing warehouse operators is one of the common denominators in world-class warehousing operations.

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