Improving DC metrics Best practices to optimize distribution center operations and lift truck fleet utilization Abstract Whether replenishing retail locations or facilitating direct-to-consumer deliveries, you’re tasked with moving inventory more efficiently than ever to meet growing demand, making accuracy and flexibility imperative. And in order to perform as a modern supply chain operation, metrics are critical to help you identify latent inefficiencies and power through daily work and peak challenges. But what distribution center (DC) metrics are most valuable? What should you lean on to shape business strategy and ultimately drive customer satisfaction? The top 12 DC metrics in the 2020 Warehousing Education and Research Council (WERC) DC Measures Report reflect the demands of customers in the era of e-commerce - and how distribution and fulfillment operations are serving them. This white paper presents top metrics from the 2020 WERC DC Measures Report, and highlights best practices to help best leverage lift truck fleets for best-in-class performance. Read the full PDF The 2020 WERC Report revealed a new top 12 metrics reported from warehouse professionals. Top 12 warehouse operational metrics Average warehouse capacity used Shipped complete per customer order Order picking accuracy Percent of orders with on-time delivery Peak warehouse capacity used Shipped damage free On-time shipments Correct documentation Inventory count accuracy by location Dock-to-stock cycle time Order fill rate Part-time workforce to total workforce Order and customer-centric metrics like on-time delivery, complete orders shipped, damage-free orders and correct documentation were listed in the 30’s last year, but have made their way to the top 12. Lift truck operations and best-in-class Lift truck operations identified several of the top DC metrics ranked as most important in the WERC Report, including average warehouse capacity used, on-time shipments and dock-to-stock cycle time. The table below summarizes what the 2020 WERC Report revealed as best-in-class performance for these metrics. Metric Description Best-in-class measure* Year-over-year trend Average warehouse capacity used Average amount of warehouse space used over a specific interval, such as a monthly or yearly window. >=90% Slight decrease from previous year, indicating more challenges using warehouse capacity to its fullest potential. On-time shipments Percent of orders shipped within a planned time, meaning off the dock and in transit to the customer. >=99.7% Best-in-class performance remained consistent with previous year, indicating a continued focus on reaching goals for on-time shipments. Dock-to-stock cycle time Time elapsed between the arrival of goods and when they are put away and recorded into inventory management systems. > 2 hours Second straight year this metric made the list after a four-year absence, indicating a continued priority in today’s industry climate. *Best-in-class operations exhibit a level of performance that falls within the top 20% of all respondents. Rising to best-in-class DC performance Achieving best-in-class performance requires both the attention and resources for continuous improvement. Top DCs strive to constantly improve velocity and accuracy, while fostering a culture of self-examination that enables warehouses to identify and remove inefficiencies. For a deeper conversation about achieving best-in-class performance, contact a solutions expert Contact your Yale® dealer Read the full PDF Fill out the form below.