Ideally, performance metrics in warehouses and distribution centers should reflect a company’s strategic objectives, but research reveals that this is rarely the case. Here’s a look at those findings, with some recommendations on how to bring metrics and strategy into alignment.
Every day, in every warehouse and distribution center, managers must answer questions about performance. For example, “We’re missing our target for percent of orders shipped error-free. How do we increase that number?” or “We haven’t shipped a perfect order in six months. What should we focus on to improve?”
To solve problems like these, we typically consider mapping the current process, implementing lean principles, and working to continuously improve processes. Once a solution has been implemented, we use metrics to benchmark our results against prior performance and that of the best performers.
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Published by Supply Chain Xchange, December 27, 2015
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