Our very own Bryan Jensen recently published an article about improving distribution processes in Modern Materials Handling. He discusses tracking key metrics, addressing inefficiencies, evaluating warehouse layout, and empowering personnel. Use the link below to read the article!
First, from a service perspective, several key questions need to be asked. Have orders been consistently filled on time (per your promise to your customer)? Have you maintained or improved your fill rate from previous years? Do you even track your fill rate and on-time fulfillment performance? Are orders arriving at your customer in good condition and with minimal amount of returns due to errors or damage? Answering these questions will lead to several areas of inquiry.
If you do not track your fill rate such that you can answer the questions above, start. You can’t manage what you don’t measure. If you have and it is below acceptable levels (which are industry and channel specific) evaluate the cause. Curing out of stock issues is a very different remedy than addressing continually missed order deadlines for in-stock product.
The former will likely require the involvement of your procurement team, while the latter probably needs attention directed to your layout, processes and personnel within the distribution center. If missed order deadlines are reducing your fill rate, examine the processes and layout in your facility, and in particular your picking area and, if one is present, your packing area.
Enhancing the productivity in either of these areas should serve to increase fill rate, while lowering cost per order. Late orders should be reduced through the reduced order cycle time (the time between the point when an order drops to the warehouse floor and the point when it is packed and ready for shipment), which is a productivity increase driver.
Click here to read the article!
