Warehouse managers face many challenges due to complexity in warehouse operations and as warehouse stakeholders necessitate optimal performance. Customers need to get their order at the proper time, employees deserve an enjoyable, rewarding work environment and manufacturers need to be informed on the performance of the stock inventory.
Warehouse performance management
It is important that supply chain executives and managers track Warehouse KPIs (Key Performance Indicators) across warehouse zones in order to eliminate losses and gain an efficient supply chain process.
Within a warehouse, a typical activity starts with unloading the goods from a truck. It is important to measure the unloading bay utilization whereby the systems monitor whether the unloading bay is efficiently utilized and alert in case of trucks going to wrong parking / designated locations. Delays happening in unloading/ loading areas can delay the whole warehouse process. Parameters such as truck delays exceeded unloading time, shortage of load man as per the load, timely transfer of cargo from unloading area to storage zone all need to be captured along with incurred opportunity costs to measure the unloading zone performance. Accident alerts are configured and communicated to management on a timely basis. When goods are received, receiving accuracy is an important parameter that calculates the proportion of correctly received orders against purchase orders. Higher scores show a more efficient receiving operation while lower scores show potential problems with receiving that should be investigated.
Goods put away process is a critical step to increasing warehouse efficiency. The initial put away of goods has a direct impact on all subsequent warehouse processes, especially the picking process. Putaway accuracy needs to be monitored to ensure the number of items put away accurately at the designated location. The same is the case with picking accuracy which indicates the number of orders picked without errors. An incorrectly picked order means returned items and paying to correct the mistake.
Improving warehouse performance
A warehouse, that has an excessive number of unutilized space is not economical. Space utilization KPI measures the percentage of space occupied by inventory out of the total space available for storage. It helps to identify improvements that will lead to holding the optimal amount of stock across the warehouse. Indoor air quality with respect to temperature and humidity measurements are critical in storage zones, especially in areas such as cold storage. Digital twin enabled systems to monitor these environmental matrices and alert the warehouse personnel in case of deviations. Historical data like how many times these parameters dropped and how long time kept in non-standard environmental conditions can be easily retrieved.
A perfect order rate is an integral KPI employed by almost all warehouses that indicate the percentage of orders carried out error-free. If you want your warehouse to have a perfect order, you should take into account some aspects i.e., it has to be on time, completed, undamaged, and last but not least- properly documented. Attaining a high perfect order rate should be the goal of every warehouse organization.
Various types of equipment like forklifts, cranes, pulleys, etc are managed within warehouse zones. Usage of the equipment as well as its performance areas need to be traced for effective utilization monitoring. Warehouse digital twin systems monitor wear and tear, total usage, and alert the concerned department for preventive maintenance. Close monitoring of cargo turnaround times ensures cargoes are moving within the specified time itself from unloading – storage – loading – despatch areas. People’s performance is monitored based on their adherence to standard workflows and occupancy in the designated locations.
Contact our digital twin experts to establish standard key performance indicators for your warehouse and gain warehouse efficiency and customer satisfaction.