How to Measure Warehouse Performance

Warehouse Performance, Cost & Value Measures

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assimilates all the warehousing accuracies in a single accuracy perspective. The example of from one of the world’s largest food and beverage companies.

Figure 5. Customer Facing Metrics Screen from the RightChain™ Warehousing Scoreboard.

3.1 Accuracy Our RightChain™ Warehousing Scoreboard tracks at least one accuracy indicator for each warehouse activity and summarizes those into four accuracy indicators; two for inbound handling and two for outbound handling: 3.1.1 Inbound Accuracy Inbound accuracy, for better or worse, sets up the warehouse for outbound accuracy. Along those lines, we recommend two inbound indicators; putaway accuracy and inventory accuracy. Putaway accuracy measures the portion of putaway transactions that are executed to the correct, system directed putaway location. It is difficult if not impossible to recover from an inaccurate putaway. Warehouse inventory accuracy should measure the portion of inventory locations that hold the system recorded level of inventory. High levels of inventory accuracy are achieved through high putaway accuracy, ABC cycle counting, disciplined housekeeping, and real time transactions. Under the drag of poor warehouse inventory accuracy trust in the supply chain breaks down. No inventory

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