Metrics for Measuring Warehouse Productivity

Metrics for Measuring Warehouse Productivity

Blog - Metrics for Measuring Warehouse Productivity

Warehouse productivity can be defined by a series of measurements which keep track of performance, like how long it takes to complete specific tasks, cost per unit, throughput and so on. The efficient use of warehouse space is critical to the productivity of any business. By utilizing lean warehousing and storage system optimization techniques, companies can ensure that their warehouse space is used as efficiently as possible.

 This not only saves on operating costs but also helps to improve overall product quality and throughput. There are numerous factors to consider when measuring warehouse productivity. To simplify, we’ve compiled the top 5 metrics you should focus on.

 1. Receiving Accuracy

 Receiving accuracy is one of the first & crucial steps of your warehousing cycle, which is needed to maintain efficient operations in a warehouse. It is achieved through a combination of proper receiving procedures and technology, that include:

●      Maintaining a receiving log,

●      Conducting a physical count of items received,

●      Comparing the count to the receiving documents.

 In addition, all shipments should be inspected for any damages or shortages. Technology can help to improve receiving accuracy by automating the receiving process through barcodes this will update the receiving log automatically and RFID tags to track the shipments.

 2. Put - Away Accuracy

 This is the process of storing materials in their correct respective locations, which can be quite challenging to achieve accurately. There are a few key things you can do to improve your put-away accuracy:

1. Understanding your inventory and knowing what you have in the stock location.

2. Training your staff about the proper SOPs is essential. They should know how to read labels and place items correctly as putting away can be quite complex.

3. Inspect your storage areas. Make sure your storage areas are clean and organized.

4. Usage of barcodes. By scanning items as they’re being put away, you can be sure they’re going to the right spot.

5. Review your SOP’s. Make sure that your procedures are still effective before putting them away.

 3. Order Picking Accuracy

 This activity measures how well a warehouse can pick and ship the right products for customers. A high accuracy rate means that customers get the products they ordered and that the warehouse operates efficiently. A low accuracy rate can lead to customer dissatisfaction and lost sales.

Some factors can affect order-picking accuracy. These include the type of inventory management system used, the number of SKUs stored in the warehouse, and the complexity of the pick paths. A well-designed order-picking system will consider these factors and minimize the errors.

 4. Shipping accuracy (On-time shipments)

 Shipments reaching customers on-time is a critical success metric for warehouses. Inventory management is crucial to any business that ships products to customers. An accurate inventory is essential to ensure that customers receive the products they ordered on time. However, inventory accuracy can be a challenge, particularly in warehousing operations. Several factors can contribute to errors in inventory, including human error, damaged goods, and misplaced items.

 Here are a few tips to help improve shipping accuracy in your warehousing operation:

1. Using scanning technologies to reduce human error in inventory management. Scanners can track items as they move into the warehouse, and this data can be used to update the inventory in real-time.

2. Inspecting goods (can be done through scanning process) before they are shipped to customers. Carefully reviewing items before they are shipped can help to ensure that only quality products are sent to customers.

3. Keeping track of inventory levels in the warehouse. This information can plan shipments and ensure that customers receive the products on time.

4. Investing in warehouse management software to improve shipping accuracy. This software can automate many tasks associated with inventory management, including tracking shipments, updating inventory levels, and generating reports.

 5. Inventory Accuracy

 This is critical to warehousing as a lack of accurate inventory tracking can lead to several problems, including lost or damaged goods, incorrect shipments, and frustrated customers.

There are some ways to improve inventory accuracy, including:

- Using barcodes or RFID tags

- Implementing regular inventory audits

- Keeping detailed records

- Training employees

By taking these steps, you can ensure that your inventory is always accurate and up-to-date.

 These are just a few metrics you can use to measure warehouse productivity. By tracking these metrics, you’ll be able to identify areas where your warehouse could be more productive and make changes accordingly. If you are also looking to improve your warehouse productivity significantly, then Rhenus Group India would be the best choice for warehousing solutions because we hold the expertise, and the experience needed to ensure that your service delivery never gets compromised.