What are the most common shipping and receiving metrics used in warehouse operations?

In warehouse operations, tracking distribution metrics is crucial for efficient management. These metrics help monitor various aspects of inventory handling process, from receiving to shipping and last mile delivery. Below are some metrics to considered. Inventory Turnover Rate Order Accuracy Order Cycle Time Order Picking Accuracy On-Time Shipping Rate Carrier Performance (Own or 3PL) Packing Efficiency Packing Accuracy Time Taken to Process a Receipt of shipment. If these metrics are put in place, shipping and receiving will be efficient.

The order cycle time is a very important business metric that directly impacts customer satisfaction, and gives rise to increased sales. A low number shows that your operations is very efficient with the fulfilment of customer orders. Here are a few tips to keep this metric low. 1. Make sure this metric is tracked and visible, with regular management reviews that identify and eliminates blockers to achieving a low order cycle time. 2. Optimise your entire supply chain by implementing a Produce to Demand inventory model, ensuring that only goods demanded for by your customers are what production or your importation team is supplying to inventory. 3. Lean warehouse operations by identifying and eliminate all non value added tasks.

Order cycle time is a collaborative metric that needs to be constantly monitored in order to remove bottlenecks, managers/Supervisors need to have collaborative meetings to see which KPI can be adjusted in order to balance other KPI I.e if picking efficiency is 2hrs and it's always is 100% we might need to reduce it to an hour for urgent deliveries. From my experience the Receiving, picking and dispatch metrics can be on point but customer complaints are numerous because the order time from Purchase Order placed to delivery time took longer than expected due to external factors.

Fully agree, adding for enhanced for riding just in time perfectly. That's impact for value of money contribution for the next improvement

In warehouses, we use simple measures to check how well we're doing. These include making sure we send the right orders on time, keeping track of how quickly products move in and out, and being efficient in tasks like stocking shelves and picking items for orders. Other metrics include how fast we can get new products, how well we fill orders from what we have, and how often customers return items. These measures help us improve and run things smoothly.

Having the right item, in the right quantity at the right time delivered without shortages to the right customer without damage.

Uma alta taxa de atendimento de pedidos sugere que você está gerenciando seus níveis de estoque com eficiência para evitar falta de estoque. Você está prevendo a demanda com precisão, reabastecendo seu estoque no prazo e contando com um estoque de segurança suficiente. Assim, você pode atender aos pedidos dos clientes prontamente. No entanto, uma alta taxa também pode mascarar um cenário de excesso de estoque. Embora o percentual alcançado mostre o quão bem você está atendendo aos pedidos dos clientes, ele não sugere um nível eficiente de estoque para minimizar a obsolescência, perdas ou danos. Essa métrica também não oferece uma ideia sobre quais linhas de produtos são mais vendidas e quais são falhas.

The percentage of customer demand that is met directly from stock without backorders. A high fill rate indicates a well-managed inventory system, while a low fill rate may lead to customer dissatisfaction and potential order cancellations.

Measuring this in an automated way is usually a challenge as these kind of discrepancies might be noticed at external sites and are reported in customers' or other sites' standard format. Plus a certain grey area which is not reported. An approach might be to do self auditing and data capturing before despatch.

Order accuracy rate can also trace back to proper training and layout management if a picker isn’t properly trained or the layout has recently changed they are more likely going to pick the wrong product out of muscle memory due to the high speed environment of picking. Double checking your order is always recommended to ensure accuracy when an order gets rejected and returned that puts it going through at minimum 3 more channels before returning to stock, that’s 3 more potential miscounts and damage opportunities

This metric evaluates the percentage of orders that are shipped without errors. It includes factors such as picking accuracy, packing accuracy, and the correct labeling of packages. A high order accuracy rate is essential for customer satisfaction and minimizing the costs associated with returns and corrections.

During high volume times dock to stock time is vital, if you have product on the dock that is empty in the stock and a replenishment team has a set route with their duties then as a receiver you need to at the very least have that product in the system before replenishment gets to it. Circumstances don’t always allow this but practicing it will always lead to faster dock to stock time

Il est également possible d’anticiper la charge de quai pour optimiser le rangement et l’effectif (sur-staffing/ détachement pour d’autres opérations). Le temps de cycle peut ainsi être optimisé car les taches de réception et rangement sont facilités afin de libérer la zone.

This metric measures the time it takes for received goods to be available for order fulfillment. It includes the unloading of shipments, inspection, and placement into inventory. Reducing dock-to-stock time helps in maintaining optimal inventory levels and meeting customer demand promptly.

Le ratio de rotation de stock permet également de définir les top catégories pour optimiser le temps de picking (les tops références sont rangées à proximité là où les références en rotation lente peuvent être deportées). Une automatisation de la visualisation du stock permet d’optimiser la rotation du stock.

Simplesmente Pareto, é uma ferramenta poderosa para gerir e ajudar analisar de forma precisa seu giro de estoque, super índico.

I partially agree with the part that says " A higher inventory turnover ratio means you have less inventory holding costs" because lead time can forcefully. During COVID-19, companies have revaluated their strategies of holding lower inventories, for they found themselves unable to keep up with the demand in disrupted unresponsive supply chains. In this case not holding inventory was a loss and the same applies to any of the wars and conflicts happening now in the world.

Calculated by dividing the cost of goods sold (COGS) by the average inventory value, this metric assesses how quickly inventory is sold and replaced within a specific time period. A higher inventory turnover indicates efficient use of warehouse space and resources.

La capacité de l’entrepôt doit tout de même être optimiser pour absorber les pics d’activités et répondre à des contraintes organisationnelles extérieures (retard de livraison, interdiction de circuler) ou intérieures (sous-effectif, contrainte technique bloquant la réception).

While I do think this one is important I think it’s more important for your space to be “liquid” especially if you have a product that sales number’s drastically change at certain times. Proper utilization is more on the receiving and lift drivers end of responsibility and with proper training proper capacity management can become second nature.

A general observation is that organizations are accustomed to conventional static racking; maybe because it is the most common type or it has the lowest initial investment. However, there are multiple racking systems that can significantly improve warehouse utilization such as deep-pallet raking, FIFO racking and Drive-Thru racking systems. Those may require careful layout planning and operations but they offer a very dense storage capacity.

Evaluates the efficiency of space usage within the warehouse. Monitoring warehouse utilization helps optimize storage, reduce costs, and enhance overall operational efficiency.

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Operator Productivity. It evaluate how many transaction qty that handled by operator compared with its standard. The Standard can be calculated based on history which show maximum qty that can be handled by each operator.