It wasn’t too long ago that warehouse managers were only concerned with the stability of their dock boards and the status of inbound and outbound shipments.
As we push forward into the era of big data, one thing is becoming apparent: metrics matter regardless of what industry your work in. Data collection has become such an integral part of running a warehouse that many managers are beginning to take advantage of its uses.
But not all data metrics are created equal. In order to avoid wasteful expenditures of time and resources, it is important to recognize what metrics matter to warehouses and why they should be used to improve operations.
Swimming in Mounds of Data
Before buying up every piece of software that you can find, measuring every action of every employee and trying to figure out how this all can help you save money, know that there is such a thing as too much data.
You can spend hours pouring over numbers and going crazy trying to connect the dots. Meanwhile, none of it even has anything to do with your operational processes. So, what data does matter to you?
Know Your KPIs
It is useless trying to measure anything that isn’t related to you key performance indicators. Using metrics for self improvement starts with you ascertaining exactly what it is your are trying to improve.
Are you trying to decrease warehouse accidents? If so, try recording what time of day in which they occur, what part of the warehouse that they happened, what equipment was involved, etc.
Each piece of data that your collect, whether it is for the purpose of saving money, time or reducing errors, should coincide with what you are trying to improve upon. Anything outside of these areas is a waste of time.
Common Metrics for Warehouses
Among the many types of metrics that are commonly measured by warehouse managers are:
Perfect orders (in which customers receive that right merchandise on time and undamaged)
Timeline of order fulfillment
Customer retention and return rate
New customer rate
Cost to ship
Returns (and reasons why)
Seasonal peaks and slow times
In the end, you have to find out what metrics are important to your warehouse. Once you do, it will only be a matter of keeping track of them so that your can learn where you can improve.
When Everything Falls Into Place
There is nothing better than the sight of an efficient, well-operating warehouse, and everything from metrics to new equipment plays a part in making this happen. If you are in need of quality new and used warehouse equipment, contact us today.