Uncategorized

KPI’s for a warehouse customer.

At a customer we have implemented a role center, so that all resources can see company the KPI’s for maximizing the throughput.  I wanted to share with you the KPI’s and the results achieved.
We decided to focus on 4 roles, with up to 6 KPI’s per role.  We also decided to have 6 KPI’s for role.  Here is what we implemented :

Customer service :
– Open sales orders : Total number of open sales orders
– Open orders where customer is stopped :  Worklist to get in payments from past due customers.
– Delivered not invoiced sales orders : Worklist to make sure as much as possible is invoiced as soon as possible.
– Reserved ordered sales orders : sales orders that depend on a purchase or a production.
– Delayed sales orders in relation to confirmed date: Worklist for setting focus on delivery time

Purchase :
– Not sent purchase orders : Worklist of purchases that has been created, but not sent to the vendor
– Open purchase orders : Just a total
– Not confirmed purchase orders – Worklist to get confirmation dates from the vendors
– Received but not invoiced – Worklist to pay vendors
– Received today
– Planned purchases : How many purchase order lines have the master planning recommended that is firmed today.

Order processing
– Invoiced today (# and sum) : A KPI to make awareness of that invoicing is the final measurement of the company, and critical important that this goes smoothly.
– Invoiced yesterday (# and sum) : KPI to measure if we are better than yesterday .
– Packingslips today : How many packing slip updates have been done sofar today
– Ready for picking : How many picking routes are complete reserved and can be printed and picked
– Picking Now : How many picking routes are currently being picked ?
– Picked sales orders : Hos many picking routes are completed, and awaiting packing ?

Production
– Productions ready for picking : Number of productions, where all BOM-items have been physically reserved, and just waiting for picking the BOM-items.
– Ended productions today : How many productions has been completed so far today
– Started productions : How many productions is currently started ?
– Delayed productions – How many productions are delayed according to the production finishdate(Delivery date)
– Planned productions : How many productions should be created from master planning today.

Since much of the order processing is automated, and sales picking routes are released automatically, the workforce can focus on the KPI that leads to that the system can generate as many picking routes as possible.  Then the workforce is focused on the physical work, and focus is always to maximize the productivity.
The result is a reduction of internal lead time with 2 days, No more add-hoc overtime, and a much more focused workforce.  Visibility is the key to success.

I appreciate that I can be a part of this worldwide blog community—as a consultant working from Norway, the blog lets me share more than 20 years of experience with Microsoft Dynamics 365. Along the way, I participated in developing retail, PDA/RF, barcoding, master data, kitting and WMS-solutions for Dynamics. My blog focuses on my deepest interests and expertise: along with a 360 degree view of digital transformation topics, I welcome opportunities to dive into retail and intercompany supply chain automation, logistics, and production—everything that is moving around in a truly connected enterprise. As Enterprise Architect on Dynamics 365, I specialize in strategic development and planning for corporate vertical solutions and works to build international networks that increase knowledge and understanding for Dynamics 365. As an advocate for both providers and customers, I'm committed to ensure that customers constantly changing needs are meet, and I see community as key for increasing expertise. I welcome you to connect with me.

0 comments on “KPI’s for a warehouse customer.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: