Any business person running a warehouse ought to know the essential key performance indicators that achieve lean management. The indicators are also measures of success and progress. They will identify areas requiring improvement while recognizing those that are doing well.
Most warehouses are mainly attentive to external factors such as shipment and customer service. While these are critical areas as well, an in-depth measurement is crucial. Here are 3 Key Performance Indicators (KPIs) for warehouse fulfillment that you should monitor.
1. Accuracy
Warehouse operations ought to be performed with precision. For instance, picking orders, accounting, punctuality and other duties should be exceptional. Failure to observe accuracy will lead to losses and other inconveniences. It could also affect customer satisfaction and expectations. As the warehouse manager or supervisor, measure these variables and functions. Know their levels and plan how to address critical problems. Consider using whatever tools necessary to increase accuracy.
2. Efficiency
A warehouse seeking to thrive should prioritize efficiency. It entails appropriately receiving and booking inventory. Efficiency is also running warehouse operations and functions competently. It may seem a simple task but gets complex when other activities are involved. There could be customers with returning goods, multiple forms of new stocks every week, stock returning to the vendor or returning damaged items. Efficiency is a fundamental requirement in doing all these things effectively.
3. Rate of Return
Customer satisfaction could be measured through how much goods are returned. Remember customers are an integral part of the warehouse business. When accounting on the rate of return, the records ought to be particular. Different segments assist in understanding the specific problem areas and the reasons. This approach will play a significant role in deducing practical solutions for addressing the problem. Knowing the rate of return may also uncover the underlying issues that could not have manifested in any other way.
If your business is underperforming Specialty Fulfillment Center can help! Give us a call today to learn out we can improve your KPIs!
