• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Four Steps to Align Qualitative and Quantitative Metrics in the Warehouse

Four Steps to Align Qualitative and Quantitative Metrics in the Warehouse

April 5, 2017
SupplyChainBrain

How do Best-in-Class warehousing and distribution facilities achieve quality and continually improve upon it? They tirelessly, and repeatedly, follow a four-step path to successful benchmarking. Major Opportunity facilities — and everyone in between — can learn a lot from both their metrics and the processes that yield those results. The steps include:

Step 1: Plan

Set benchmarking priorities that align with corporate’s values and future vision. Then, identify the key processes that make the largest positive impact on the firm and its customers.

Step 2: Measure

Collect the data from front-line operational workers and the managerial level. While not every metric matters to every warehouse, the five most popular metrics tracked by survey respondents are: on-time shipments; average warehouse capacity used; order picking accuracy (percent by order); dock-to-stock cycle time (in hours); and internal order cycle time (in hours).

Step 3: Compare

Research what Best-in-Class operations have done, process-wise, as a guideline to achieve similar performance results. Identify gaps and determine why they exist. Although doing so might seem overwhelming, recommendations from resources such as WERC’s recently updated Warehousing and Fulfillment Process Benchmark & Best Practices Guide can be helpful.

The Best Practices Guide provides a list of key qualitative benchmarks parsing them into eight separate chapters — one for each primary functional area within a warehouse: receiving & inspection; material handling & putaway; slotting; storage & inventory control; picking & packing; load consolidation & shipping; shipment documentation; and warehouse management system.

The publication guides the evaluation of internal practices against five sample process benchmarks (poor, inadequate, common, good and best). It also includes a self-assessment exercise and guidance in performing a quantitative benchmarking of a facility’s performance against the industry averages published in the most recent DC Measures Study.

Based on such a comparison, as well as a better understanding of how Best-in-Class operations conduct these tasks, it’s time to develop an improvement strategy based on the priorities identified in the planning phase (Step 1). Set both near- and long-term goals to measure and mark improvements.

Step 4: Act

Implement Best-in-Class practices to improve processes and close the gaps, focusing on metrics with the most value to an operation in terms of supporting the corporate mission, vision, values, and long-term goals. Assess yourself regularly against those targets and adjust accordingly. If near-term goals are being surpassed monthly, the bar was set too low. Then, after a year, circle back and repeat the four steps. Consider an independent, third-party review and assessment for an outsider’s impartial perspective on internal processes and their alignment to Best-in-Class facilities’ performance.

The Outlook

By 2020, the performance gap between the best and the rest won’t close without a conscious effort to improve the processes taking place within operations. Best-in-Class warehouses understand which processes have the greatest impact on corporate goals, and focus tirelessly on improvements in those areas.

    RELATED CONTENT

    RELATED VIDEOS

    Logistics Global Supply Chain Management Quality & Metrics All Warehouse Services
    KEYWORDS All Warehouse Services Global Supply Chain Management Logistics Quality & Metrics Supply Chain Analysis & Consulting
    • Related Directories

      Tecsys, Inc.

    SupplyChainBrain

    Australian Unions Call Off Strikes Against Chevron

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Popular Stories

    • AN ARRAY OF MEDICAL DEVICES LAID OUT ON A GREEN BACKGROUND

      Why the Medical-Device Industry Is Embracing Contract Manufacturing

      Sourcing/Procurement/SRM
    • A TOY TRUCK CARRIES A GIANT BOX WITH A RED RIBBON IN A BOW

      Three Trends to Watch During Peak Season 2023

      Apparel
    • A MANUFACTURING PLANT AT DUSK OR DAWN REFLECTED IN WATER

      Uncertainty is the New Normal

      Data Management (Big Data/IoT/Blockchain)
    • On Demand Webinar_SAP.png

      Optimize your Logistics Pinch Points to Build a Risk Resilient & Sustainable Supply Chain

      Webinars
    • A GIANT CONTAINER VESSEL SPORTING THE LETTERING OF YANG MING PLIES THE SEAS

      Yang Ming Accused of Profiteering During Pandemic by Bed Bath & Beyond

      Ocean Transportation

    Digital Edition

    Scb august 2023 lg

    2023 100 Great Supply Chain Partners

    VIEW THE LATEST ISSUE

    Case Studies

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

    • Convenience Store Client Maximizes Profit and Improves Customer Service

    • A Digitally Native Footwear Brand Finds Rapid Fulfillment

    Visit Our Sponsors

    Antuit Zebra Anvyl AutoStore
    BEUMER Group Blue Ridge Global Brother
    CHEP Cleo Coenterprise
    Data Capture E2open Enveyo
    Eva Air ForwardX Robotics Frayt
    GAINSystems Generix Geodis
    GEP Global Supply Chain Marketing Summit GreyOrange
    Here Holman Logistics Infor
    Inmar Kinaxis Lexis Nexis
    Locus Robotics Logility LogistiVIEW
    Lucas Systems MCA Connect MPO
    Old Dominion OneRail Overhaul
    PartnerLinQ (Visionet) Port of Virginia Ryder E-commerce by Whiplash
    Saddle Creek Logistics SAP Shyft
    Sourcemap SPS Commerce Tecsys
    TGW Systems Thomson Reuters Veho
    Verusen Walmart Workshop
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Your Subscription
      • Newsletters
    • Resources
      • Events Calendar
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing