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Measuring Your Warehouse Efficiency

Filed under: Productivity, Logistics, Supply Chain

There is only a limited amount of space in your warehouse and you will need to ensure that you are making best use of this space to make the highest profit. Your business profits will be very closely linked to the efficiency of your warehouse, so analysing all of these key efficiency factors in detail is a very prudent move to make.

Measuring the time it takes to complete each of these processes will help you to determine how efficient your warehousing system is. Delays in any of the steps listed below, can significantly impact the efficiency of your business because it will hold up the other processes within your warehouse.

Product turnover time:

The product turnover time is basically the amount of time that it takes for a product to be sent out of your warehouse to a customer after it has arrived.

If your product turnover time is too slow then you will be losing money and limiting the amount of products that your company can process through the warehouse. 

Unloading and recording the product:

When a delivery first arrives in your warehouse, you will need to unload the goods and record what you have received.

The time it takes to unload the delivery is important as if it is slow you will create a bottleneck of goods and will be unable to process them.

The efficiency of this process will depend upon the organisation of your warehouse and the lifting device that you have available for the job.

Organising and storing the delivery:

Once you have unloaded the delivery and determined what it is that you have received, you need to organise and store the products. How you do this depends upon your storage setup and will be a significant factor in overall product turnover time.

The racking systems and picking processes put into action will impact the speed of product turnover.

Processing orders:

Final stage in warehouse product turnover is the receipt and processing of orders.

The time is takes in receiving an order and it being sent to the warehouse will impact turnover times and the organisation of product picking processes will too.

Hysters efficiency in warehouses

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2 comments

Processing orders is definitely one of the most important components of increasing warehouse efficiency.   

Outsource Equipment
April 03, 2015 - 2:25 am

Great tips!! All the above points are important for doubling the efficiency of warehouse.

Sophia Humphreys
April 28, 2017 - 10:23 pm

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