Creating a Warehouse Replenishment Efficiency Improvement Plan
Every warehouse wants to be as efficient as possible, but most managers admit that there is room for improvement, particularly when it comes to replenishment. The secret to improving warehouse replenishment efficiency is having the right measurements of activity on which to base decisions. Warehouse management systems can help by offering trends and statistics all in one place.
First, you’ll need to determine which metrics will have the greatest effect on the warehouse’s success. It’s a good idea to single out three or four metrics to keep track of every month. If you track too many, you might find yourself overwhelmed with data. Focusing on just a few helps you see the situation more clearly. Ensure that one of your metrics is accuracy as improving this area typically leads to improvements in many other areas at the same time.
You’ll also want to set some goals for your metrics. You should aim to be realistic here, but you also need to choose set numbers. For accuracy, you’ll want to aim for 98 percent or even more. Other metrics that can help a replenishment team improve efficiency include fill rates, on-time delivery and inventory buildup.
Once you’ve made the desired improvements, it’s not time to rest on your laurels. Congratulate yourself, but keep monitoring the situation to make sure thing don’t start to slip up. If you find that you’re beating your goals handily on a regular basis, it might be time to set new milestones and work on different metrics. Choose carefully, and avoid changing your goals too suddenly or you might lose all that great progress you’ve made on the initial set.
Monitoring warehouse replenishment activities with a view to making improvements is not a difficult task as long as you have a good plan and the right data readily available.
This blog post was based off of an article from Archon Interactive. View the original here.