The distribution industry is turning to new strategies and technologies that can increase efficiency and worker productivity. Customers are demanding faster turnarounds and correct orders – in most cases you get one shot to earn their dollars. Warehouse managers have to stay up-to-date on the latest trends and technologies that are shaping the industry. What does this mean for NetSuite customers and how do you know if your operations are ‘best in class’ or have room for improvement?
There are many metrics than can be used to measure DC performance. One industry-leading source is the DC Measures annual benchmarking study conducted by the Warehousing Education and Research Council (WERC). This study is done every year and examines the 30 key operational warehousing and distribution metrics.
In 2018, five of the top 12 metrics focused on employees, a sign of the tight labor market and wanting to squeeze as much efficiency into your workforce. There was shift in 2019, with operations prioritizing quality and capacity instead, a sign of e-commerce growth and the challenge DCs face around order fulfillment.
So, what are the key warehouse metrics you should be measuring in your distribution operations?
One thing that is clear looking at these metrics is technology is only going to become more important to distribution centers as they look to meet high benchmarks. According to Logistics Management, in 2018 the use of a WMS reached 93%, the first time it topped the 90% mark. But at the same time, nearly half of all warehouses are still relying on paper-based (spreadsheets or paper) picking methods to fulfill orders.
In the WERC survey, to be considered “best-in-class,” performance levels must fall within the top 20% of all respondents. “Performance management truly thrives on consistency— In most cases for best-in-class operations, the only way to achieve higher performance is to commit to significant investment and risk.”
Implementing a cloud-based ERP like NetSuite with a Built-for-NetSuite mobile WMS like RF-SMART is one way to to modernize your supply chain. For more than 20 years, Oracle NetSuite has helped organizations grow, scale and adapt to change. RF-SMART helps NetSuite users manage inventory, assign work and measure performance and productivity. Real-time transactions update NetSuite ERP for an accurate picture of your operations.
Here are a few examples of how our customers are using NetSuite and RF-SMART to be best-in-class.
Allied Hygiene was able to increase their inventory accuracy from 75% to 99.6%.
Allied Hygiene found it impossible to maintain an accurate count of their inventory due to their manual paper-based method. Once implementing NetSuite and RF-SMART, they now experience less errors. Coupled with real-time data, this means a rapid improvement in accuracy and efficiency for their operations. “Now, if a customer rings and asks for an estimate on when they’re getting their order, sales admins can look at their screen and see if it’s picked and packed already.”
Skin Script was able to double their order picking, picking 500+ per day and offer same-day shipping with confidence their customers are getting the correct order.
Skin Script uses NetSuite + RF-SMART to complete sales order picking and packing. While Skin Script did not have bins prior to RF-SMART, as they moved to a new warehouse, they set it up to mirror the flow of transactions in RF-SMART. The result was a more logical warehouse. “I no longer have employees asking where items are, RF-SMART prompts them to the right location.”
Prior to RF-SMART, Skin Script employees were packing boxes immediately after they were manually picked, but the shipping label was not applied until later in the process, which resulted in errors. With RF-SMART controlling the picking and packing, orders are picked, packed and labeled in succession, with RF-SMART prompting users to scan at every step to ensure accuracy.
Furtex has increased their on-time picks from 73% to 99%, and is completing 25% more orders.
Furtex moved to NetSuite to leverage a cloud-based ERP, but poor visibility of their stock led to a search for a mobile solution to enable better inventory control. Now the operations manager has a dashboard that provides KPIs, that previously he has no visibility into. This includes how much work his team has done and what is pending – from detailed purchase orders of inbound stock to how many replenishments his team needs to complete.
Want to learn how other NetSuite customers are measuring warehouse success?
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