In many businesses, success is hard to quantify. The only way a counseling center knows how effective its efforts are is through referrals and the overall happiness of the patients. In warehousing though, there are a number of indicators that show how well the business is functioning. Here are some ways to measure the success of warehousing operations.
Accurate Inventory Levels
Most warehousing operations rely real-time inventory management systems. If they are working properly, these systems will sync inventory levels to the retailer so customers know when items are out of stock. If they are not working properly, orders may come in for out of stock items, thereby delaying the order fulfillment process. If a warehouse consistently has accurate inventory levels, it’s going to be as productive as possible.
Having the Power to Meet High Demands
Warehouses go through seasonal shifts in demand, usually in line with peaks in retail shopping. A good staff of workers can adapt to these shifts and accommodate to the increased workflow. Of course, the warehouse may still need seasonal workers to fulfill their orders, but the core staff members are usually happy to train/help them. As long as employees feel valued and motivated in the workplace, they will make sure it operates at maximum efficiency.
Returns, Or Lack Thereof
Warehouses that offer order fulfillment services can measure their success by their return rates. If they have a high rate of returns, there may be an issue with their picking or packing warehousing operations. Distribution centers with a low rate of returns are using the right technology and systems to keep customers satisfied. That is a mark of success.
Quick Truck Times
If a truck is delayed at the dock, it creates an even bigger delay with other trucks. The cycle continues until the entire fleet is off schedule. Trucks should be loaded and unloaded in a timely manner in order to ensure that warehousing operations are moving at optimal efficiency. If there is a noticeable lag in this part of the warehouse, steps should be taken to identify the problem and come up with an appropriate solution.
Low Order Cycle Times
The order cycle time measures the amount of time between the moment the customer places the order and the moment the customer receives the order. The lower the time, the more efficient the warehouse is operating. Some delays are unavoidable, but most can be handled with an adjustment in technology, warehouse organization, or order processing.
Most people are quick to blame the shipping company when an order does not arrive time. This may indeed be the issue, but the warehouse may also be to blame. If an issue arises, such as slow truck times mentioned above, the entire shipment may be thrown off. That’s not the shipping company’s fault. Warehouses must own-up to the delays they create and rectify them for future shipments. A couple delays may not be a big deal, but repetitive delays need to be addressed as soon as possible.
Feedback Warehousing Operations
Your customers can tell you how successful your warehousing operations are. If they complain about the same issues time and time again, something needs to be done about them. If you’ve already tried to resolve the issue, clearly the solution wasn’t the right one. As long as warehouses pay attention to feedback from their clients, they can keep their operations running smoothly in all areas of the facility.
For more information about warehousing, Contact Overflo at 1-800-626-0616