Yesterday, I was fortunate enough to join a tour of the Port of Melbourne, thanks to the Australasian Production and Inventory Control Society (apicsAU) and the Port of Melbourne Corporation. I also hear that the Port is part of the 2014 Open House Melbourne program and there will be tours then.
Many of those who know me are aware of my curious interest in all things to do with Supply Chains and how they function. I have watched to this talk by Rose George twice in two months and thought I’ll share it with you as there are a few key messages in here worth considering about the industry but also about global trade.
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?
The Victorian division of the Supply Chain and Logistics Association of Australia is hosting the Annual Awards on the 31st of October 2013 and are calling for nominations for these awards. Nominations close on the 14th of September and can be made in the following categories:
- VIC Industry Excellence Award
- VIC Supply Chain Management Award
- VIC Training, Education & Development Award
- VIC Future Leaders Award
- VIC Environmental Excellence Award
More details of the awards and nomination process can be found at the SCLAA Website.
Roshan being interviewed at the CeBIT conference in Sydney last week (Part 4)
What’s impressed you at CeBIT Australia 2013?
See Part 1 of the interview here.
See Part 2 of the interview here.
See Part 3 of the interview here.