Chapter_2_-_Measuring_Benchmarking_Warehouse_Performance.pptVIP

Prepared by Angela Sun for HKU SPACE Suzhou Warehouse and Inventory Management Chapter 2 Measuring Benchmarking Warehouse Performance Reference: Edward H. Frazelle, World-Class Warehousing and Material Handling, published by Mc Graw Hill, 2002 Benchmarking Warehouse Performance Unit Outline Benchmarking Warehouse Operations Warehouse Performance Metrics Warehouse Performance Gap Analysis (WPGA) Do’s Don’ts for Warehouse Automation Projects Benchmarking Warehouse Performance Benchmarking The purpose of Benchmarking: Set world class standards for performance, practice and infrastructure goals for the warehouse operations. The benchmarking and goal setting process permits the quantitative assessment of the opportunity for improvement in: Productivity Shipping accuracy Inventory accuracy Dock-to-stock time Warehouse order cycle time Storage density Benchmarking Warehouse Performance Benchmarking Warehouse Operations Benchmarking-A quantitative assessment of some aspect of performance of an enterprise. It is the process of gathering and sharing those assessments and developing an improvement plan of action based on the assessment. It includes three perspectives: Internal benchmarking: focuses on a single company External benchmarking: looks outside the firm’s industry Competitive benchmarking: looks firms in the same industry Benchmarking Warehouse Performance Internal Benchmarking Example: Gillette External Benchmarking Example: Xerox Service Parts Benchmarking Partnerships – Factors for success Strong in the areas you are weak and vice versa Sensitive to confidentiality requirements Willing to admit weakness and share lessons learned Willing to admit strengths and share successes Open-mined Logistically similar From a different industry and (perhaps) in another country Benchmarking outside your own industry has had a profound effect on many industries. Examples: ECR – efficient customer response, a grocery industry standard, is a development of QR