Key Performance Indicators (KPI’s) are critical to keeping track of inventory, accuracy shrinkage, inventory turnover and your inventory to sales ratio. A WMS KPI evaluates a specific 3PL warehouse operation and how it is measured against certain operating benchmarks.
You can have a wealth of data information ;however, it can be daunting if you do not have an understanding of what it means and most importantly realizing how this information is critical to ensuring your 3PL warehouse operation is running smoothly and efficiently.
Here are seven KPI Indicators which should be an integral part of your 3PL warehouse performance evaluation audit program.
Receiving and PutAway KPI’s
From speaking with delivery drivers, unloading trucks, counting boxes, and inspecting for damages to placing items on shelves, receiving and putaway’s of items represents on the most important KPI’s in a 3PL warehouse operation.
How accurately your employees put items on the shelf is another key KPI indicator and measurement that is a critical to running a successful 3PL warehouse operation.
KPI’s in this category include order cycle time and how long it takes a customer order to ship once they pace an order.
Storage KPI’s detail how much it costs to keep products on shelves.
Many customers ordering items online are searching for a particular product and if they receive the wrong item it will be extremely frustrating for the customer and will cost you and your customers significant money.
This is a critical component , knowing how efficiently your warehouse equipment is used and correcting and related issues. Keeping a KPI for equipment can save much time and provide cost savings
Return and Process KPI’s
One of the most common occurrences in a 3PL warehouse operation are product returns. Whether someone orders the wrong item, the wrong items is shipped or the item is damaged, this is an urgent issue that should be dealt with as soon as possible.
Core eBusiness Solutions and its Evolve Core Warehouse Management software have an abundance of built in KPI indicators. Evolve CoreWarehouse 3PL software is a Tier 1 cloud based software.
Core eBusiness Solutions is headquartered in Fairfield, NJ and can be reached at 201 836-8900