One of the biggest bottlenecks in any warehouse or stocking operation is the receiving dock. Even with a live inventory system and SKUs in place the labor required to unload, break down, QC, scan in, and ultimately shelve to stock takes up a large chunk of raw time and resources. There are ways, using Pick-to-Light technology, that can not only improve order picking but stocking operations as well. It’s not a one-size solution, but one that is versatile and adaptable to a company’s growth needs.
Meeting KPI for Warehouses
Warehouse costs can be broken down to four basic parts, but each part has an impact on the whole operation. The largest single cost is, naturally, order picking. This takes up to fifty percent of warehouse resources. The other fifty percent is composed of shipping (15%), receiving (15%), and storage (20%). Looking at this, just having stock and picking it for an order eats 70 percent of an operation’s overall resources between items being received and shipped out. Let’s tackle KPIs for a basic warehouse operation.
- Cost per received packing slip line. This means the cost of the item plus the cost in time and resources.
- Lines (not orders) throughput per hour. Orders can vary in quantities and sizes.
- Utilization of staff and equipment per hour of each shift
- Quality, in this case, means the accuracy of the invoices received.
- Cycle time calculates how many orders can be processed per cycle.
- Cost to put away each line of received stock.
- Lines of items put away per hour.
- Utilization of staff per hour to put away.
- Quality of put away measured by accuracy with each item matched per SKU.
- Cycle time in the amount of time it takes to put away once line and start the next line.
Efficiency is more than a matter of speed, it is a matter of accuracy as well. The same light directed picking technology that can improve overall picking KPI can also be used in getting products from the loading dock to the shelves. A cart with the same display can tell a stocker what aisle, and which shelf or bin, or a stocker at large has only to look for the lighted display to know where to stock the item and indicate with the push of a button that the task is accomplished.
Voodoo Robotics can expand your picking and put-away efficiencies with a simple starter kit. The pick-to-light devices operate on standard AAA batteries and require no additional wiring. Messages can be changed to communicate with pickers and stockers, even communicating personalized messages. Software integration is a snap, and can even run off your standard Excel or Google Sheet. Ask us how Pick-to-Light can improve your warehouse KPIs across the board with a cost-effective and easy-to-use system.