KPI Improvement Plan PDF

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KPI Improvement PlanWarehouseandDistributionChannels" I declare that in submitting all work for this assessment I have read, understood and agree to the content and expectations of the Assessment Declaration. "Table of Contents Excutive Summary...........................................................

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KPI Improvement Plan

Warehouse and Distribution Ch l

"I declare that in submitting all work for this assessment I have read, understood and agree to the content and expectations of the Assessment Declaration."

Excutive Summary: VinaTalks Corporation provides mobile phones in Vietnam market at a reasonable price to compete with other phone brands which users are familiar with. This business is looking to reduce warehouse costs to increase competitiveness. Therefore, this report will go through the Key Performance Indicators (KPIs) data provided by the company to analyze and make plans to develop the warehouse to reduce logistics costs and increase efficiency. Some problems have been identified: -

Dock-to-stock time too long may cause damage to the inventory by moving too much. Besides, dropping from movements to each area leads to damage inventory and may cause injury to workers.

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The long distances between areas, forklifts have to be used a lot, leading to high transportation costs and higher rates of damaged inventory. Hence the cost per order also increases.

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Workers who are not trained and are not provided with adequate protective equipment are also the causes of accidents. This leads to inventory delays and increases costs.

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Unable to deliver on time due to long pick-up times, long delivery times, highly damaged inventories and lack of worker training have prevented information consistency, slowing down flow in the warehouse. Low on-time delivery rates and high Damaged inventory lead to low perfect order completion.

However, as a warehouse manager, three recommendations were made: -

The first is the redesign of the warehouse in a U shape; with two receivers and interfaces located in the same direction will save dock-to-stock time. The finished product storage area will be switched with raw materials, it will be closer to the packing area, saving travel time and increasing productivity.

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Use Single-Deep Pallet Racks to minimize inventory damage. Warehouse management systems (WMS) will also be applied to reduce the time to find goods, improve productivity, and reduce costs for information technology systems.

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Training staff improves their safety consciousness. When employees masterly use machines, WMS, understand their position, warehouse productivity will be improved. Also, raising worker safety awareness not only maintains the safety of the warehouse but also reduces costs due to the reduced number of occupational accidents. Moreover, providing adequate protective equipment will help employees not worry about safety, focus on more expertise, which can help warehouse productivity improve.

Table of Contents Excutive Summary..............................................................................................................1 I.

Introduction:.................................................................................................................2

II.

Analysis:.......................................................................................................................2 A.

KPI: Inventory Management:....................................................................................2

B.

KPI: Warehouse Performance:.................................................................................2

C. KPI: Order Fulfilment:...............................................................................................2 III.

Recommendation:....................................................................................................2

A.

Restructuring Warehouse Layout:.............................................................................2

B.

Technology:..............................................................................................................2

C. Staff Training:...........................................................................................................2 IV.

Conclusion:...............................................................................................................2

V.

Reference:...................................................................................................................2

VI.

Appendices:..............................................................................................................2

I.

Introduction:

The warehouse is an important link in the supply chain, it is a steppingstone to adapt to changing demand, creating competitive opportunities for businesses (Jinxiang 2007). Efficient warehouse operations, increasing competitiveness. To be able to know whether the warehouse has effective or not, a key performance indicator (KPI) introduced into the supply chain is the perfect order metric (Gwynne 2017). Problems in inventory management, warehouse performance and order fulfilment can be seen from the KPI data of VinaTalks Corporation. This report will be written from the perspective of a warehouse manager, with a plan to develop a 30,000m2 warehouse for mobile electronics, improve KPI, reduce logistics costs, and bring benefits for business.

II.

Analysis:

Key performance metrics (KPIs) cover many of the current supply chain performance metrics and provide everyone using the same metric (Gwynne 2017). The most important KPIs for a warehouse include the KPI for inventory management, KPI warehouse performance and KPI order fulfilment (Elisa et al 2018). So, for a warehouse can operate effectively or not, it can look at its KPIs.

A.

KPI: Inventory Management:

Dock to stock is a receiving method whereby the material is passed directly to the customer, skip normal reception check. Often these items DTS has had the requirements on quality and specific packaging before being shipped (Navin 2006, Brian n.d). According to the WERC benchmark, the best Dock to Stock KPI is less than 2 hours (Gwynne 2017). Here VinaTalks take about 1 hour and half for 1 order, it can be considered that the time to complete this step is quite long. The reason is mainly due to the difficulty of quantity, quality control and too long transit time.

According to WERC, the ratio of inventories damaged each month to below 0.01% with an average of 0.25% (Gwyne 2017). In the case of VinaTalks, the percentage of damaged inventories was 4.5%, which is a number greater than 0.25% so it is understandable why the Dock to stock is long - due to much damage. The reason is usually inappropriate pressure packaging, falling during transportation. Also, during storage, to reduce costs, pallets are stacked, and the above weight could damage the bottom part (Edward 2016). Stacking a pallet high without a shelf, in some cases, it is not neatly lined up with a very high chance of falling, not only damaging the inventory but also endanger workers.

B.

KPI: Warehouse Performance:

According to the WERC (2017) benchmarking principle, the best value for Cost per Order is...