Tracking Performance in the Supply Chain

In business, we all strive to be highly efficient and productive, but how do we know if we are actually achieving these goals? We really can’t know – unless we employ comprehensive performance tracking processes.

In distribution, we are measured on how quickly we can accurately deliver goods to the client. This can be tracked through the number of lines picked and packages shipped within a given timeframe. Data for warehouse performance tracking is typically gathered through computer monitoring and RF (radio frequency) guns, which are used to store electronic barcode information from packaging, labels and bin ID tags. With electronic tools, each core task in the warehouse – such as picking, labeling, packing and shipping – can be monitored in real time for speed and accuracy at both the department and individual employee level.

With this type of visibility, warehouse managers can easily identify specific areas and processes that need improvement as opposed to an educated guess, which could ultimately lead to ineffective changes. Managers can also use performance data to adjust scheduling and ensure staffing levels are sufficient at peak times.   All of this information can be used to maximize efficiency and control costs, while pinpointing top achievers and possible weak links.

Employee incentive programs and evaluations can also be driven off this analysis.  At Encompass, we use television monitors to post performance data for each task so employees know how they’re doing compared to co-workers.   This creates a competitive environment in which we reward those who exceed hourly goals in stocking, picking and packing each month.  Baseline goals are set based on historical data. It’s a great way to keep our team from getting complacent and provides a little friendly competition, while also helping to improve our operations.

No matter what role your business plays in the supply chain, it is essential to have clear visibility into the performance of all aspects of your operation.  Establish specific expectations and metrics to analyze execution and then plan enhancements. And you don’t need to pay an expensive consultant or earn an MBA to measure and improve your operation.  Local schools often provide process improvement training like lean Six Sigma, which can also be taken online. It’s well worth the investment, time and effort to educate your team on best practices to enhance your operations and track the outcome.