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Warehousing Key Performance Indicators

April 5, 2014

order picking cartons at a distribution center

Key performance indicators – KPI’s – are frequently used in general business to evaluate the success of everything from a specific department to an entire enterprise. They focus on strengths and weaknesses. Many warehousing KPI’s tend to be focused on external performance, such as on-time shipments that directly impact customers. This is a good measure, but the need to go deeper and measure the factors that drive those success rates is critical. What are some KPI’s for warehousing operations?

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Benchmarking Warehouse Performance…What do You Measure, and How?

November 8, 2007

For about $110 (or half that if you’re a WERC member) you can buy the Warehousing Education and Research Council Manager’s Guide For Benchmarking. The book details different kinds of benchmarking, why you should benchmark, how to pick appropriate metrics & measurements, and analyze your company’s performance. It’s also got techniques for communicating to get the results you need. The group’s website describes it like this:

“As competition grows for dollars, time and resources, the demand to improve performance takes on greater importance. WERC developed this Guide to Benchmarking to help you unleash the power of benchmarking for your organization. You’ll read about the different kinds of benchmarking, why it’s important to benchmark, how to choose the right metrics, how to analyze your company’s performance, and techniques for communicating to get the results you need. Perhaps most importantly, you’ll learn how to develop a benchmarking strategy specifically for your operation.”

It’s a relatively short, 44-page read. It’s appealing to me because we stress performance measurement at Cisco-Eagle, and the metrics are perhaps the most difficult aspect of that. Get them defined correctly and everything else should fall into place.

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