The warehousing industry has exploded in recent years, and it is set to continue growing at an impressive rate, at least through 2026. It has a CAGR of 10% during the forecast period. Much of this growth has been spurred by the COVID-19 pandemic and the restructuring of how many companies conduct normal operations.
Many companies are now partnering with warehousing experts or building their warehouses to support their business model. Key Performance Indicators, or KPIs, are essential for businesses across all industries. They can measure how effectively a company is achieving its key business goals. They can also help companies determine areas for improvement. When you work with a warehousing management solution, you can get accurate data related to your KPIs to optimize your performance and better meet customer needs and expectations.
The metrics related to inventory control can impact an entire supply chain. Optimizing this performance can ensure your company is functioning at peak performance and not wasting money with too much warehousing space or failing to meet customer demand by having too little inventory on hand. Some of the KPIs that may be positively impacted by partnering with warehousing management solutions include:
- Demand Forecasts: Data rooted in historical trends and current customer preferences can help you close the gap between forecasted demand and actual demand. And this means you won’t be left with too little or too much inventory, which can reduce inventory carrying costs and consumer satisfaction. And when demand forecasts are accurate, they can also give you data about potential growth opportunities.
- Carrying Costs: Another key metric for companies is the amount of working capital tied up in inventory. After all, if the funding is used for inventory, it reduces what is available for other growth-based opportunities. Therefore, having this data available allows you to reduce carrying costs, freeing up more of your working capital.
- Inventory Turnover: Understanding the turnover rate for items in inventory can help you optimize efficiency. You can be sure to keep more on hand for items with a rapid turnover and decrease the number of slow turnover items.
- Accuracy: While perfect accuracy is something we can all aspire to, it is rarely achievable. However, data related to the accuracy of packing orders and shipping them is essential. It can be incredibly costly to fix these mistakes and earn back customer trust. Accuracy data can help you identify ways to enhance your accuracy.
- Order Cycle Time: Order cycle time, also called lead time, is the total time from when a customer places an order and when it is delivered. It can show you how effective your supply chain, inventory management, and product fulfillment operations are. This data can also be useful for identifying areas where you can optimize performance and decrease the order cycle time.
- Rate of Return: This KPI can tell you the total percentage of all returned orders to be restocked. Knowing this figure is helpful as it can help you identify problems in manufacturing or with the supply chain.
- Perfect Order Rate: This metric tells you how many orders are fulfilled perfectly. A high perfect order rate is desirable as it means fewer returned items and more satisfied customers.
This list represents some of the most sought-after data for companies related to their warehousing functions. However, there are opportunities for the KPIs you identify to be tracked and reported to you when partnering with a managed warehousing solution. These warehousing management solutions often have advanced facilities that allow for great performance, satisfied customers, and the availability of data to demonstrate that you are operating more efficiently and with fewer returns and unsatisfied customers.
Dawson Logistics provides warehousing management solutions to a wide range of customers with unique business needs. The many benefits our company can provide to enhance your KPIs include:
- Contract Warehousing: This service is ideal for customized delivery programs.
- Technology: Dawson Logistics uses the best technology available to track and report on data related to your KPIs – and improve your performance. These technologies include an integrated Warehouse Management System (WMS), RF Scanning, EDI, and online inventory tracking. Additionally, you can rest assured that your company’s data is safe and secure.
- Inventory tracking, management, and control: Our superb performance ensures your KPIs related to inventory experience a significant boost.
- Quality Control: The facilities at Dawson Logistics are equipped to ensure every package is packed, weighed, and measured to meet specifications.
To learn more about how Dawson Logistics can enhance your company’s performance and give your KPIs a boost, contact our experts today.