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Warehouse Performance Measurement - Case Study Example

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Summary
Improving the value of the goods stored in such warehouses is likely to lead to a more efficient warehouse. Warehousing managers have adopted several strategies to…
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Warehouse Performance Measurement
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Warehouse Performance Measurement

Download file to see previous pages... Understanding the importance of technology is crucial in value addition. Primarily, much value is lost from damaged goods or expired goods. With scanning technology, it is very easy for an organization to maintain a record of all products, those damaged and those that came in first, ensuring that they are sold earlier than those that come in later.
Secondly, another approach that is heavily relied upon conventional warehouses to add value to goods in stock is to increase efficiency. Although technology is mainly centered on improving the value of goods in warehouses, several other strategies are in use by warehouses to add value to their goods. Maintaining efficiency in the storage and withdrawal of goods from the warehouse could help add value of the goods. Primarily, by recurrently monitoring the stock and assessing its safety is vital to adding value to goods. Broken products, for instance, cannot be identified unless there are constant routine checks. Monitoring stock can be done orally and damaged goods can be eliminated from the warehouse, returned to seller or back the manufacturing unit for servicing or to aid in the creation of other products. Recycling damaged goods is a sure way to save on manufacturing and warehousing costs as otherwise, the damaged goods would be disposed.
There are several measures of warehouse performance have been established. Primarily, the main measure is efficiency. Efficiently managed warehouses perform well. As such, efficiency in the inventory taking process, space allocation and use, and quality and cost control. Successful warehouses not only have good organization, but also save on costs (Richards, 2011). Efficiency helps reduce on costs of managing a warehouse and hence improves the performance of a warehouse. In addition to the proposed strategies pertaining to the performance of warehouses, several measures are used to evaluate warehouse ...Download file to see next pagesRead More
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