Benchmark Your Distribution Center or Warehouse Online
Every warehouse and distribution center is different but, for all, the key to success is effectively using resources to deliver required services. Benchmark your facility's performance with a new online self-assessment tool developed at Georgia Tech with the cooperation of MHIA's Logistics Execution Systems Association (LESA) and Order Fulfillment Council
(OFC).
What Is It?
This is a system based assessment tool. System based assessment goes beyond conventional single-factor productivity metrics (picks/hr, cube/line) to provide a "system view" of warehouse performance. It computes a single "efficiency score" based on a set of resources used, and a set of operational results achieved. In addition, the self-assessment tool indicates where you may have an opportunity to reduce resource usage or increase operational results.
In April, 2002 the first warehousing/distribution center report was published based on the findings from the first 15 months of the benchmarking service being publicly available. Readers interested in a free copy may download it now*.
*You will require Acrobat Reader on your computer to see the Benchmarking free download (pdf format).
Is It Just For Warehousing?
The tool currently being offered is specifically for warehousing, but the same ideas and methods can work for other applications as well, such as transportation, point-of-use storage, or distribution.
How Was The Model Defined?
The current version of the tool is based on a study originally conducted at Georgia Tech by Messrs. Frazelle and Hackman and uses the resources and operational results developed for their study. Their study captured data for more than 50 warehouses.
What Data Do I Need?
Resources:
Inventory of warehouse equipment
Headcount
Floor space
Number of broken case pick slots
Number of pallet rack slots
Square feet of floor stacking
Results:
Total orders shipped (per year)
Broken case lines shipped
Full case lines shipped
Pallet lines shipped
In addition, you will be asked to provide some information about your company and your warehouse. Company information is needed so we can contact you to clarify data, or verify that it represents an actual warehouse. Warehouse information is required in order to do the analysis.
Who Sees My Data?
Your data will not be available to any other user of the benchmarking tool. From time to time, Georgia Tech may perform statistical studies of the database, but no specific company information will ever be released.
What Does It Tell Me?
Your warehouse information is compared to information from all other warehouses in the database. A "system performance index" is computed to indicate, considering all inputs (resources) and outputs (results), how you compare. An index of 1 indicates that your warehouse is at least as good as any other warehouse in the database. In an "input" oriented analysis, an index less than 1.0 indicates you might be able to use fewer resources to produce the same output. In an "output" oriented analysis, an index greater than one indicates that you might be able to produce more output with the same inputs.
How Much Does It Cost?
At the present time there is no cost to use the benchmarking tool.
Can It Do Anything Else?
The self-assessment tool can be customized to allow internal benchmarking for users with multiple sites and different input and output measures can be defined to reflect the specific business and requirements of the user. A customized version of the tool would be relatively easy to implement, but only makes sense if the user has several dozen locations.
Another possible use for a different version of the tool is budgeting, planning, and internal benchmarking over time for a single location. This would require a significant development effort.
How Do I Get Started?
Try out the self-assessment tool online.
About The Partners
The online benchmarking tool is an ongoing project of the Keck Virtual Factory Lab and The Logistics Institute at Georgia Tech. The cooperating partners in developing the benchmarking tool include:
Logistics Execution Systems Association (LESA)
LESA is a product section of the Material Handling Industry of America (MHIA)
Order Fulfillment Council (OFC)
OFC is a council of the Material Handling Industry of America (MHIA)
The Progress Group
The Progress Group is a member company of the Logistics Institute at Georgia Tech