At The Logistics Business we have developed a structured Warehouse Performance Management programme that has been designed to re-introduce the Industrial Engineering techniques of observation and measurement, and combine these with strong Operations Management experience.
Our approach is split into four stages:
1. Scoping – We carry out a simple benchmarking exercise to assess the scope for improvement. Results are delivered to clients within five days.
2. Warehouse Model – Working with clients, and using rated activity-sampling techniques, we develop a model to measure performance and accurately assess potential areas for improvement. Different options can be tested and client priorities incorporated. The result is an action plan which includes a credible calculation of savings and benefits. Typically, this exercise takes around four weeks.
3. Performance Management Programme – The action plan to deliver improved performance could include:
- Regular reporting to measure individual and overall productivity
- Workload planning to assist and support operational decisions
- Cost-to-serve reporting
- Process improvement programmes to find the most productive ways of working
- Coaching for individuals and teams.
Improvements start almost immediately, leading to reduced costs in year one of the new operation.
4. Continuous improvement – Good performance will become a priority and a shared responsibility. The change in culture means that the Performance Management Programme will continue to deliver benefits year after year. To ensure its success we offer a Performance Management Service to keep activity times up to date and adapt processes to meet our client’s changing needs.
The benefits of this approach are:
- Any challenges or opportunities are managed locally and thoroughly
- Allows you to monitor progress and feel confident that results are being achieved
- Enables your management team to sign off one stage before work starts on the next stage
- Offers you more opportunity to influence the course of the project as it develops
- From our point of view, the staged approach allows us to work more closely with our clients and fit the programme around their individual needs
These improvements will continue to reap rewards well into the future as a result of the innovative philosophy behind our Warehouse Performance Management System. Our experience is that organisations who follow our four-stage plan can typically expect warehouse performance to improve by between 20 and 30%.