WAREHOUSE PERFORMANCE MEASSURES

The performance indicator or key performance indicator (KPI) is a measure of performance of the warehouse that shows how efficient and effective it is. If the products do not move smoothly within supply chain, business would face serious service related challenges.
Hence, it is necessary to drive the performance of the warehouse through key performance indicators.

KEY PERFORMANCE INDICATORS

People, Cost, Space and Systems drive the performance inside the warehouse. KPIs are based on the above mentioned drivers and focused on activity. The following activities are common in any warehouse: 1. 2. 3. 4. 5. Receiving Put-away Storage Pick-n-pack Shipping

Receiving: Unless the merchandise is properly received, it will be very difficult to handle all other subsequent functions. Receiving process could include goods physically received at the warehouse and stored or directly delivered at customer. The relevant KPIs for receiving function should include the following: Cost Cost of Receiving Productivity Volume received per man-hour; Utilization Receiving Dock door utilization Quality Accurate receipts %; Cycle Time Time taken to process a receipt.

Put-away: Once receiving activity is completed, the accepted merchandize has to be stored in a location that is convenient to retrieve for further action. This process is called put-away. The KPIs for this activity should include the following: Cost Cost per put-away Productivity Put-away per man-hour; Utilization Utilization % of labour and equipment; Quality Perfect put-away %; Cycle Time Time taken for each put-away.

Storage: Broadly we have two types of storage systems and they are manual storage and the second one is automated storage and retrieval system (AS/RS). The KPIS for this activity would include: Cost Storage cost per item; Productivity Inventory per sq. foot; Utilization % Location and cube occupied; Quality % Location without inventory discrepancies; Cycle Time Inventory days on hand.

Pick-n-Pack: The relevant KPIs for this activity would include: Cost Cost of picking Productivity Inventory picked per man hour; Utilization Picking labour and equipment utilization %; Quality Perfect picking lines %; Cycle Time Order Pick cycle time per order.

Shipping:

Shipping is the last step in warehouse activity in handling shipping goods to the customer or handling stock transfers. This process is the origin to moving product from point A to point B. The KPIs for this activity could include: Cost Cost of shipping per order; Productivity Order process for shipping per man hour; Utilization Utilization of shipping docks in %; Quality Perfect shipping %; Cycle Time Shipping time per order.

MACRO LEVEL PERFORMANCE MEASSURES

Inventory Turn Ratio or Stock Turn Ratio (ITR)
Inventory Turn ratio is being used to measure the movement of the inventory from warehouse. This ratio is a relationship between the rate at which goods move through the system over particular period of time in relation to the average inventory level. The higher the inventory turn ration the better it is.

The ratio indicates the number of time the stock has been turned over during the period and evaluates the efficiency with which a firm is able to manage its inventory.
Inventory Turn Ratio = Annual throughput/ Average inventory level

Space utilization (Occupancy rate)

There are two different but related elements of space utilization, specifically 1. The storage capacity of the building itself, that is directly a function of the physical aspects of the layout, the width of the aisles, the storage methods, the types of storage aids, etc.; and 2. How well the storage capacity is being utilized, that is directly a result of how the resources are managed. To optimize the storage capacity of each warehouse requires an understanding of the unique mix of inventory that will be stored in it, and the level of activity expected within it.

Financial Performance
Maintenance Packing Equipment and other resources Building and site Insurance (Safety features) Staff Pallets and Pallet repair etc

Warehousing in India

Central Warehousing Corporation

A premier Warehousing Agency in India, established during 1957 providing logistics support ranging from agricultural sector to sophisticated industrial products. , is one of the biggest public warehouse operators in the country offering logistics services to a diverse group of clients.

469 Warehouses across the country with a storage capacity of 10.04 million tonnes and 5,449 trained personnel.
Warehousing activities of CWC include food grain warehouses, industrial warehousing, container freight stations, inland clearance depots and air-cargo complexes. Scientific storage and handling services for more than 400 commodities including hygroscopic (Absorbing moisture) and perishable items .

Import and Export Warehousing facilities at its 36 Container Freight Stations in ports and inland stations.

CWC is operating 4 Aircargo Complexes at the International Airports of Amritsar, Goa, Singanallur and Virugambakkam.

CWC is presently operating container trains transporting containers between Loni (Delhi) - J.N.Port (Navi Mumbai) and Loni - Mundra. CWC runs about 300 trains in these sectors and handles about 26,000 TEUs annually.

Kerala State Warehousing Corporation

Came into existence on 20th February 1959. KSWC is a statutory Corporation having 50% Share Capital by Central Warehousing Corporation and 50% share capital by the Govt. of Kerala. 60 Warehouses scattered all over the state. All types of agricultural commodities and other commodities notified by the Government from time to time are accepted for storage in a Warehouse. Trivandrum 12516 MT Kollam 24506 MT Ernakulam 28397 MT Thrissur 11450 MT Kozhikode 590 MT Total (60 warehouses) 197740 MT

GATI
Gati Limited is Indias pioneer in Express Distribution and Supply Chain Solutions.

Operating since 1989

Annual turnover of Rs 12094 Million Gati operates a fleet of 4000 vehicles on road, 3 marine vessels and over 7000 plus business partners across India.