Executive Briefings

Measuring DC Performance

Performance metrics for warehouses and distribution centers have steadily improved since 2003, when the Warehousing Education and Research Council first conducted its annual "DC Measures" study, says Joe Tillman, senior researcher at Supply Chain Visions and co-author of the study. Moreover, the gap has significantly narrowed between best-in-class companies and those lower on the performance scale, he says.

While the performance improvements are good news, the upward curve has little room left to grow and is noticeably flattening out. "In the last two years, performance has plateaued for best-in-class companies," Tillman says. These companies are maintaining performance at 99 percent or better, so there is simply little more that they can do. Getting to 100 percent is just not worth the additional cost or effort it would entail, he says.

Companies that have not reached best-in-class status still have some room to improve. In 2012, these companies achieved overall performance of 95.7 percent, based on 44 key metrics used by the study.

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Keywords: inventory control, warehouse management, inventory management systems, warehouse management systems, wms warehouse management, wms warehouse management systems

While the performance improvements are good news, the upward curve has little room left to grow and is noticeably flattening out. "In the last two years, performance has plateaued for best-in-class companies," Tillman says. These companies are maintaining performance at 99 percent or better, so there is simply little more that they can do. Getting to 100 percent is just not worth the additional cost or effort it would entail, he says.

Companies that have not reached best-in-class status still have some room to improve. In 2012, these companies achieved overall performance of 95.7 percent, based on 44 key metrics used by the study.

To view video in its entirety, click here


Keywords: inventory control, warehouse management, inventory management systems, warehouse management systems, wms warehouse management, wms warehouse management systems