Key Performance Indicators (KPI) Leads to a More Efficient Warehouse

 Key Performance Indicators - KPIs

KPI  (key performance indicators) is used to implement sufficient goals, and thereby communicating these specific goals to employees more effectively is a crucial part to a more productive warehouse. Many retailers fall short the understanding and importance of communicating results and objectives to their employees – knowingly or not, upper management often keeps this information secret and away from warehouse workers. Smart retailers need to keep their employees, both aware and motivated. While most employers do not need to disclose everything, they should make it quite clear why achieving certain goals and objectives is important to warehouse effectiveness. Doing this will not only provide some rationale for major changes, but as a result, KPI transparency will also help employees understand where they fit into the company and how important their job is to the overall success of the business.

The Value of Reporting

When implementing KPI, (key performance indicators), reporting is crucial for helping retailers stay on track with their warehouse operations while also keeping employees motivated and moving forward. Reporting should be done on a daily basis, with weekly, monthly, quarterly and annual reports acting to consolidate all the different information.

Giving Employees the Tools they need to Succeed

KPI, key performance indicators include coaching, training and other tools to make their employees’ jobs easier and more efficient. Some questions that may need to be asked are, do employees understand how to pick, pack and ship products as quickly as possible? Are they efficient in their ability to offload trucks and log products in and out? Mobile picking tools allow employees to checkout items straight from the shelf instead at a standalone station to do so. Ultimately, the right KPI and the proper training tools can go a long way.

KPI, key performance indicators,and Warehouse productivity are important, and with the right goal making, reporting, training and tools, retailers can improve their aspect of operations.

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Key Performance Idicators - KPIs
Ed Romaine
Ed Romaine
Romaine has spent over 30 years involved with organizations looking to optimize their distribution, manufacturing, and warehousing operations. Focusing on customer’s processes, systems and business model, Romaine has helped dozens of organizations improve profitability by reducing labor, floor space, errors and inventory while improving accuracy, inventory turns and cut-off times.Within the industry trade association, MHI, Romaine has taken numerous leadership positions over his 18 year membership including: Chairman of the Automated Storage & Retrieval (AS/RS) Group, Chairman of the Order Fulfillment Council of America, Chairman of the Warehouse Execution Systems Group and was one of the originators of the Carousel and VLM Product Section Group.Romaine is a frequent editorial and information contributor to hundreds of publications, blogs and online publications and has been a speaker at dozens of Supply Chain, Logistics, Lean and Facility organizations and functions.

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