In warehousing, you are juggling competing priorities on any given day: staff scheduling, transportation management, inventory forecasting, and third-party vendor agreements, to name a few.
“To run an effective warehouse, you need to evaluate your current performance and take action to improve your overall operations, and once you’ve done that, repeat,” says Exegistics Director of Supply Chain, Rimon Malik.
As a leader in supply chain innovation, Exegistics knows that efficient warehousing and distribution operations are essential to supply chain management. To optimize your current operation, start with these three steps.
Define and Focus Your KPIs
“Initially, it can be daunting to start defining and measuring key performance indicators (KPIs),” says Malik, “but if you don’t measure it, you can’t fix it. Once you identify areas that need attention and then fix them, that trickles down to other areas of operation and you begin to reap the rewards.”
Common warehousing KPIs to consider:
- Inventory turnover
- Cost of carrying inventory
- Receiving efficiency
- Inventory accuracy
While KPIs differ depending on supply chain management practices so, note your starting point, and set your target for each KPI and partner with a 3PL partner to define and optimize results.
“Once you know what is running smoothly and what needs fine-tuning, you can create a plan for enhancing productivity and efficiency,” adds Malik.
Implement a Warehouse Management System
A warehouse management system (WMS) tailored to your particular needs can transform your operational processes. Research new developments in warehousing, and pinpoint technologies and procedures that will help you optimize workflow, save time, and reduce expenses.
If this task is too challenging to tackle on your own, partner with a company specializing in warehousing innovation. Work with a team of experts to audit your existing operations and implement changes that will boost your efficiency, reduce your costs, and maximize your profitability.
Find the Best Talent
How can you keep your most valuable employees, giving them opportunities to keep building their skills and growing within the organization? How can you resolve labor inefficiencies or recurring problems? Which staffing needs are still not being met? Work with an operational staffing services provider that will help you recruit and retain talented operators to create the next best version of your business.
Interested in improving your warehouse performance? Contact Exegistics for expert warehouse and distribution solutions.