Distribution Centers (DCs) and warehouses run on efficiency and productivity. These two metrics can make or break profits for a typical DC, but they are not the only important ones. There are also other metrics that if not properly managed, can lead to sub-optimized processes. A study sponsored by Intermec found that an average warehouse worker can lose 15 minutes a day due to process inefficiencies. That translates to 3000 Labor hours lost to inefficiencies every year!
How does one begin to reduce those inefficiencies? The principle is simple to understand but sometimes difficult to achieve without the right visibility. It involves leaning out the most frequent processes and chipping away at it day by day, activity by activity until all your operations are predictable when faced with processing work. It begins with measuring and defining certain metrics, and we review a few of the most important in our latest Infographic Using Labor Metrics to Drive Employee Performance.
For some additional benefits to tracking these vital metrics, read on.
Benefits of Using Performance Metrics for Your DC
There are various benefits to using performance metrics for your DC. These include –
Improved Productivity
With improved visibility to processing power by area, and right sized planning from more accurate data, comes reduced cost per piece, overtime and carry over work. This also makes your warehouse predictable, and you can confidently staff leaner, knowing that they will complete the day, shift or wave of work on time.
Increased Retention
With a greater utilization of performance metrics, you can improve overall employee retention by paying employees commensurate to their labor effort. It provides a basis for fair pay for fair work and incentives for extra effort. This will help define you as an “employer of choice” and reduce the overall cost of acquisitions and recruitment, thus leaving more revenue for expansion and improving efficiency.
Reduced Overtime
With the right performance metrics at hand, you can utilize resources more efficiently and understand the ROI from overtime and use it only in the cases where it benefits your warehouse goals. This effective utilization can multiply overtime and give you compounded results far greater than if you would simply institute efficiency measures in a single department. It places overtime back where it should be, as a customer service mechanism that is used only when needed.
TZA Provides Optimal Labor Management System With ProTrack BI
With ProTrack BI, you can track and store a great wealth of real-time performance data to improve your overall performance by 10-30%. You can improve performances for packaging, manufacturing, assembly and kitting processes across the board at your distribution center. What’s more, our ProTrack BI system can utilize performance visibility data for accurate labor planning and progress evaluation.
In essence, these metrics can give you an accurate picture of your current labor resource management.
Using this information, you can aim for continuous improvement and boost your daily performance, day by day.
There’s no time to lose. Every second counts. And with ProTrack BI, you can make it count.
REQUEST a DEMO today of the ProTrack Labor Management System Software.
Check out more TZA resources and TZA Infographics for valuable information on the issues facing the industry
Reach out to us to learn more about our Labor Management System Services that can help you assess performance, establish best practices, and manage performance standards.
Call TZA and speak to our Labor Management System team to discuss your challenges. (800) 229-3450.
