Fundamentally, setting up and operating a warehouse might not be a difficult task but operate the warehouse at an optimal level of efficiency and effectiveness will not be as simple as it may be. The challenges that pose to numerous organizations are to display the right attitude by regularly seeking continual improvements that are known as “Kaizen” (change for the better).
In order to measure the efficiency and effectiveness levels of the warehouse management, Key Performance Indicator (KPIs) system is a tool to be employed. By using the existing collected data as the yardstick against the further collected data to determine the success made at each measured operational area. Therefore, to definitively, the key performance indicators for warehouse performance measurement must be objectively driven and aligned back to the business objective.
Key Performance Indictors (KPIs)
Key Performance Indicator for warehousing is a tool used to measure the goals set by the company and its achievement of warehouse management. The goal setting at the KPIs would require the past evaluated performance of the warehouse performance.