Warehousing or Warehouse Management is one aspect of the supply chain for which a myriad of KPIs can be indentified and monitored. As most of these don’t have to be real-time, I have tried to call out those which I believe could be monitored real-time via a Dashboard:
The aim of most warehousing operations is to be able to fulfil an order when it arrives, and complete an on-time delivery. Seeing how orders are on or off track, in terms of picking and packing, is one way to ensure that any backlogs don’t get worse. Additional resources could be put towards bringing the orders back on track if required.
These orders tend to be urgent by their nature and have tight deadlines. The amount of delay tolerable on these are minimal, hence it helps to see how these orders are progressing. Any issues with these orders should be addressed faster than the normal orders.
Order Turnaround Times
The turnaround times of an order can also be monitored via a dashboard. If a trend is noticed during the course of a day, it can be investigated, addressed and brought back to acceptable levels.
Items Running Low on Stock
This is especially important if these items are fast moving. Most ERP/WMS systems these days have rules for automatic order placement, and many warehouses run lean. If not properly managed, orders requiring these items could hold up progress in a warehouse.
An incident could be anything from a jammed conveyor belt to an injury to a staff member. Being aware of the incidents and how that affects the warehouse operations could in turn help management decide how to change the processes/priorities of what needs to be done.
Monitoring these incidents also helps to identify blackspots within the warehouse and to address them in the long run.
Warehouse Space Utilisation
Monitoring this measure would indicate if the warehouse is likely to run out of space (or reach set thresholds) anytime soon.
Being aware of how much space is available or being used is also important for operational decisions such as how to make more room (e.g. focus on completing the current orders before receiving any more good in), or which area of the warehouse floor should be used next.
The unit of space could be measured as a single tray or rackspace, a shelf, a bay or a whole warehouse.
Total Warehouse Metrics
Depending on where the warehouse is, what it is constructed from, and other criteria, there may be limits as to how much weight can be placed on the warehouse floor (or on a shelf). Dashboards could be used to monitor and alert on any of these breaches.
Various incidents, delays, etc have a cost associated to it as there could be fines or penalties imposed on the business. It should be the goal of any business to reduce or eliminate such incidents, and in turn reduce costs or expenses. A dashboard can help flag issues as they happen, or in some cases before they happen.
All businesses would be insured for the total stock it carries at any one time. However knowing the actual value of goods in a warehouse at any one time will also identify if the business is under insured or over insured. A dashboard should be able to show this information real-time.
Again, a good starting point to identifying what to include on a dashboard would be KPIs for the organisation/business unit.
As always, I’d love to hear from you with any examples you wish to share.
Following on from my previous blog about dashboards titled Dashboards are a great way to know how you are tracking, below are some examples from a Transport Company’s perspective. These list some of the information being monitored via dashboards and how they help the business operations on a day to day to basis:
Monitor Delivery Performance
This helps determine if deliveries are on schedule, are tracking within their variances, or if any action required to be taken to assist the driver or delivery destination.
Monitor Driver Fatigue
This helps ensure compliance, but also provides the ability to understand exceptional circumstances and how they could be avoided into the future.
Monitor Delivery time SLA’s
This could be based on different customer or product segments. If high value customers are regularly receiving deliveries late, remedial action could be taken or SLA’s adjusted accordingly.
Monitor load volumes & profitability
This helps understand which loads during the course of the day are not profitable and if anything can be done to the load or delivery schedule to improve the situation.
Monitor compliance & driver behaviour
This help ensure that drivers stay within the legal limits for speed, weight, and size on their designated routes
Monitor vehicle performance
Helps the driver find a mechanic or workshop enroute, should there be a problem with the vehicle
A whole suite of dashboards could be generated with financial information such as profitability of loads, routes, customers, products, etc, the use of third-party or sub-contractor drivers and associated costs/savings
A good starting point for what to include on a dashboard are existing KPIs for the business. From here, these dashboards could be fine-tuned and improved. The beauty of dashboards is that they are real-time (or near real-time). The same information could be generated from operational reporting, but there is nothing like a “here and now” viewpoint and dashboards are a great way to covey this information.
Are there any examples from your experience that you would like to share?
Dashboards are great way to keep an eye on things to ensure what’s important to you is on track, and if not, to highlight areas that need attention or help. I’ve always been a massive fan of dashboards and encourage most companies I work with to consider some form of dashboards that help operational and strategic decision making.
What are a dashboards?
As we all know, cars have a dashboard which show about 15-20 different pieces of information about the state of the car at a particular time. A flight deck on the other hand has hundreds of little indicators that provide information on a range of measurements which are all useful to ensure the plane stays on course.
For all intents and purposes, think of dashboards as being similar to a car’s dashboard or a flight deck but for your business or personal life. With a business, a dashboard could say how the business is tracking against budgets, the cashflow position, the success rate of meeting customer orders on time, productivity in the manufacturing plant, etc. In personal life, a dashboard should show information such as your current financial position, how you are tracking against life goals, etc.
How do I create a dashboard?
Dashboards can be simple and developed using tools such as spreadsheets, or be complicated and developed using specialist software applications. Or, they could be a combination of both!
For the simple variety, you could have a series of data or information in tables on one worksheet and summarise it on another to provide you with the high level information you require. For the more complex ones, there are enterprise grade software applications that talk directly to a range of databases and provide real-time information. With these applications, you can configure alerts to be sent should exceptions occur and the like. But for now, let’s keep this topic simple!
Dashboards in my life
Personally, I use a combination of spreadsheets and software including web-based applications, google finance & iPhone applications to monitor personal finances, projects and goals. For business, I use spreadsheets for some aspects and software applications for different information such as finance, projects, sales, marketing, analytics, etc for others. One day I hope to be able to bring all of these information onto one portal to make my life easier, but this isn’t high on my list of priorities at the moment.
In future posts, I will write about examples of dashboards that I have come across in various industries. If there is anything specific you would like to read more about or wish share with our readers, please feel free to comment on this topic. As a starting point, do you use dashboards in your life? What do you monitor and how do you monitor it?
As someone recently converted to the world of podcasts, I thought I’ll share with you one that I have found great value in – not just for business but also personally.
Michael Hyatt is the former Chairman and CEO of Thomas Nelson Publishers and an author who regularly blogs and podcasts on the topics of Leadership, Management and Personal Development. If you’re interested, his blog ishttp://michaelhyatt.com.
You can also subscribe to his podcast titled “This Is Your Life” athttps://itunes.apple.com/au/podcast/this-is-your-life-michael/id502414581?mt=2.
PS: Let me know if you have a favourite podcast. I might just end up subscribing to it, and recommending it as well.
A couple of days ago I saw a medical practitioner for a regular treatment of my back. During the conversation he mentioned that they were dumping their software application and going back to paper based record keeping. He also mentioned that the professional association he and his colleagues belonged to actually recommends that paper records be kept!
This really surprised me. Firstly, in this day and age, all medical practitioners use electronic record keeping of their patient details and patient notes. Why would ANY professional body advice against using a software application? I am no legal person but there is greater protection for collecting and storing information in digital form than ever before.
Secondly, these same practitioners had a nasty fire last year where they lost a lot of their belongings. Given the losses and the insurance challenges they’ve had, collecting more paper is probably the one direction they should avoid taking!
Given that I’ve been working in the space of Document Management & Electronic Record Keeping as well as being an advocate for going paperless, I couldn’t help myself but try to convince him that it wasn’t a great idea in the long term. It appeared that he and his colleagues had already made up their minds.
The Public Record Office Victoria website provides some guidelines on retention and disposal of documents for anyone who is interested.
Have you experienced similar situations where businesses are so fed up with their software applications that they would rather go back to paper? Let me know if you have any advice I can pass on.