Warehouses help businesses meet their storage needs. However, modern-day companies have added some value to their common perception. They are now offering additional services to their customers that help optimize the entire supply chain system. A warehouse service provider in Kolkata helps trader track their raw materials, finished goods, and other storage needs.
Warehouses have roles in improving the daily operations of an enterprise. You must make effective tracking of their performance. The performance of a warehouse system affects the accuracy of fulfilling orders. It also influences the speed at which each of the orders gets over.
Performance Indicators of a Warehouse Management System
The leading performance indicators of a warehouse management system include:
It means the company staff’s average time to receive and deliver the orders. Efficient receiving will help to better the retail result of a company. Therefore, companies maintain timestamps for new stock delivery, deliverable stocks, and the stocks that the warehouse team has sent out. Company management can track the fault from the records.
Improved Purchasing Decisions
Warehouses with an effective inventory system help the management with accurate data. You can decide when to replenish your stock with new ones or purchase supplies for a vacant warehouse.
The order history provided by the warehouse manager helps identify fast and slow-moving products, respectively. You can also specify the seasonal products. Meticulous follow-up of the data will enable you to make effective purchase decisions.
Rate of Return
Your stock-house also helps you to keep a good track of the goods that the customers have returned. The warehouse operations manager must ask the customers the cause of returning the goods and record those in a separate data record system. From the record, you become aware of the reasons. The knowledge will enable you to ponder over strategies to mitigate the faults on your part. Consulting the operation team before sitting with other director board members should also help.
You should work more on tracking and properly segmentation the goods returned to the warehouse. Methodical search helps the company management understand picking accuracy. You can assess the picking accuracy for a period as you find the incorrect item returned by the customers.
Companies can adopt any of the following strategies to improve picking accuracy.
- Zone Picking, where you assign a zone to every order. Company staff will realize order picking within this zone.
- Batch picking is where a picker can pick multiple orders at a given time. It helps minimize the number of trips to the respective location, thus minimizing cost.
- Wave Picking: Your Warehouse service provider in Kolkata can help you with space where you can pack the consignment. You can engage sorting staff to rack the consignable by the ordering provider’s name or the date of shipment. These actions can help reduce the flow of returning goods.
Order Lead Time
Order Lead Time refers to the average processing time for an order or the time after which the customer had received the order physically. Companies divide the order lead time as per geo-locations, types of products, and online orders. Try to keep the order lead time low. It means that the customers receive the goods fast. The company can enjoy a satisfied and loyal customer base too.