Pillars of Warehouse Efficiency

1. Order
Accuracy

8. Employee 2. Inventory
Productivity Accuracy

Key factors
7. Dwell impacting 3. Cycle
Time warehouse Time
efficiency

4. Turn
6. Capacity
around
Utilization
Time (TAT)
5. Pick-and-
Pack
Accuracy
Metrices impacting each pillars
1. Order Accuracy 2. Inventory Accuracy
 Order accuracy rate  Inventory accuracy rate
 Order cycle time  Inventory turnover rate
 Error rate  Stockout rate
 Returns rate  Order lead time
 Customer complaints  Carrying cost
 Cost of errors  Obsolete inventory
 Order fill rate
5. Pick-and-Pack Accuracy 6. Capacity Utilization
 Warehouse capacity
 Order accuracy rate utilization rate
 Picking accuracy rate  Order lead time
 Packing accuracy rate  Labor productivity
 Error rate  Inventory turnover rate
 Order cycle time  Stacking Efficiency
 Inventory accuracy  Order cycle time
 Return rate  Inventory carrying cost
 Capacity utilization by
product
3. Cycle Time 4. Turn around Time
 Lead time  Loading and Unloading
 Order fulfillment rate Time
 Throughput time  Transit Time
 Inventory turnover  Dwell Time
 Fill rate  Vehicle Idle Time
 Order accuracy  On-Time Delivery
 Backorder rate  Order Accuracy
 Vehicle Turnaround Time
7. Dwell Time 8. Employee Productivity
 Units picked per hour
 Average Time Inventory
 Units packed per hour
Spends in the Warehouse
 Equipment utilization
 Lead Time
 Safety incidents
 Order Fulfillment Time
 Attendance and punctuality
 Back Order Rate
 Work Quality
 Inventory Accuracy
 Efficiency/Productivity
 Turnover Rate
 Training and Development
Some Automation in Warehouse
Here are some examples of automation that can be implemented in a bread warehouse:
• Conveyor systems: Conveyor systems can automate the transportation of products throughout the
warehouse, reducing the need for manual labor and improving efficiency.
• Robotic order picking: Robotic order picking can automate the process of selecting products from the
warehouse shelves and placing them in containers, reducing the need for manual labor and improving
accuracy.
• Automated inventory tracking: Automated inventory tracking systems can track inventory levels in real-time,
reducing the risk of stockouts and overstocking.
• Automated order processing: Automated order processing systems can streamline the process of receiving
and fulfilling orders, reducing manual errors and improving efficiency.
• Barcode scanning: Barcode scanning systems can automate the process of identifying products and tracking
inventory levels, improving accuracy and efficiency.
• Automated packaging: Automated packaging systems can package products in containers or bags, reducing
the need for manual labor and improving efficiency.
• Automated labeling: Automated labeling systems can label products with barcodes or other identifying
information, improving accuracy and reducing the risk of errors.
• Automated temperature control: Automated temperature control systems can regulate the temperature of
the warehouse and refrigeration units, reducing the risk of spoilage and ensuring product quality.
Quality of Bread

Key metrics to measure the quality of bread in a bread warehouse:

• Appearance: The appearance of the bread is an important factor in its overall quality. This includes
characteristics such as color, shape, and texture.
• Taste: The taste of the bread is another important factor in its overall quality. This includes
characteristics such as flavor, aroma, and mouthfeel.
• Texture: The texture of the bread is an important factor in its overall quality. This includes
characteristics such as softness, chewiness, and crustiness.
• Shelf life: The shelf life of the bread is an important factor in its overall quality. This includes
characteristics such as how long the bread remains fresh and how quickly it becomes stale.
• Nutritional value: The nutritional value of the bread is an important factor in its overall quality. This
includes characteristics such as the amount of fiber, protein, and other nutrients in the bread.
• Consistency: Consistency in the quality of the bread is important in building customer trust and
loyalty. Consistency can be measured by conducting regular quality checks on samples of bread.
• Customer satisfaction: Ultimately, customer satisfaction is the most important metric for measuring
the quality of bread. This can be measured through customer surveys or through tracking customer
complaints and feedback.