Your warehouse efficiency software is capable of generating hundreds of complex metrics in real time, but it's up to you to tell it which ones you really want to see. When it comes to getting real answers about how well your organization is running, you need to dig deeper than the surface level metrics that everyone else uses. Here are a few additional metrics to consider:
To begin with, look at metrics that are 100% within your control. These are the things that happen inside your warehouse that your warehouse efficiency software can measure from start to finish. For instance:
- How long does it take to accept the shipment, and get a team en route to unload it after the truck pulls up to the loading dock?
- How long do items sit on your receiving dock before being put into stock locations?
- How long does each item remain in your inventory before it goes back out?
- What is the total cost of maintaining your inventory?
- What is the up time of your internal technical infrastructure that you rely on to run your warehouse?
All of these metrics point to the efficiency of your ordering and restocking processes.
It is also worth using warehouse efficiency software to look at some external metrics. These are questions that usually have to do with your vendors, your delivery systems and the services you are paying for.
- What are the compliance rates for your vendors?
- What are average lead times from your vendors?
- What percentage of trucks are arriving on time for their deliveries and shipments?
- What is the up time of any external systems you rely on to run your warehouse?
Oftentimes, companies sign a contract with a vendor or 3PL and then give those vendors the benefit of the doubt when it comes to following through. By actually measuring their performance, you can find areas where your warehouse efficiency has been impacted. The reality is that there may be ways for you to improve warehouse efficiency by eliminating vendors who routinely cause disruptions to your business.
Warehouse efficiency software is able not just to measure all of these different metrics, but also can put them in context with other related metrics. They can discern large scale trends drawn from a variety of different angles, and give you the opportunity to cut waste across the board. All you have to do is use your software to create a full picture analysis of how your warehouse efficiency is affected by movements internally and externally.