Business visionary Peter Drucker once said, “If you can’t measure it, you can’t manage it.” This certainly holds true when it comes to warehouse operations.
The question is, how do you measure DC Performance?
A recent infographic from DC Velocity identifies a number of key metrics that help to benchmark and evaluate DC performance.
If it seems like measurement is easier said than done, you might consider outsourcing. A third-party provider can give you the resources to address a number of these issues:
- On-time shipments – With state-of-the-art transportation management systems (TMS) and shipment planning tools, 3PLs provide real-time visibility and identify opportunities for efficiency through route optimization and pool consolidation.
By leveraging a 3PL’s network of strategically located facilities, you can typically reach more than 98 percent of the U.S. within two business days via ground service – helping to ensure timely and cost effective deliveries.
- Warehouse capacity used – With warehousing costs on the rise, it is increasingly important to pay for only the space you actually need. That can be challenging if your inventory levels fluctuate dramatically. A 3PL offers the flexibility to scale operations to fit your requirements – whether they change seasonally or even from week to week.To further manage space requirements, many companies move product configuration closer to their customers to help control inventory levels. Using a 3PL for services such as assembling rainbow packs or shrink wrapping gift sets gives them the flexibility to be responsive to customer demand with less inventory.
- Dock-to-stock cycle time – Experienced 3PLs are able to identify the most efficient processes for receiving and putting away goods in the warehouse. They can ensure that incoming products are compliant (i.e. correctly bar-coded, packaged), so they can be put into stock quickly for a speedy turnaround.
- Order picking accuracy – Technology such as pick-to-light and RF scanners helps to ensure order accuracy. With a 3PL, you can access this state-of-the-art technology without the overhead cost. If they have sophisticated warehouse management and inventory management systems, you will have visibility to current inventory and real-time availability across all channels.
- Order cycle time – Knowledgeable 3PLs can applying best practices and custom engineer solutions for your particular product, so orders can be processed more quickly. Leveraging automated solutions such as motorized conveyors and labelers helps to keep things moving.
Check out the DC Velocity infographic to learn more about what to measure. If you need help in determining how to put metrics to work for you DC operations, our experienced associates are happy to help. Contact us.