Efficiency of Warehouse Activities

Do we have enough resources? Correct answer: I don't know!

Efficiency means the extent to which the effort or resources consumed generate value for a process.

How efficient are the activities defined in your warehouses? For the efficient measure in the logistic activities we must first of all have defined the processes and the activities in the warehouses - do we have them?

Are the responsible persons qualified for those activities? Are times defined for each activity (norms) and can measurable indicators be monitored to assess and improve compliance?

In general, work procedures and instructions, norms and measurable indicators are defined for the most important areas of a factory: production, quality, process. But is the warehouse area, or logistics in general, less important? In Automotive it is circulated that from the cash flow of an organization over 80-85% is in the Supply Chain, in the other industries this percentage varies between 60% and 90%. Only based on these figures representing the money in your organization, would you like the processes that consume these amounts to be efficient? Or at least to know the problems and losses that steal this efficiency and that generate costs that decrease your profitability?

Following the route of the money, it seems that the deposit is very important. For this reason we must identify risks and losses and allocate resources to prevent and solve them, otherwise the warehouse and logistics can become black holes in which organizations lose money.

Another aspect to consider in warehouses: who is your best operator? George? And your "best" operator? Vasilica? Please show me with numbers, not opinions, because the opinion is changeable, and these days when we are talking about staff fluctuation of over 10%, the motivation of employees is very important.

Together we can learn and develop the best solution for implementing Efficiency in your warehouses and Logistics activities, to start the path to profit.