KPI Warehouse Design

Table of Content

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KPI Warehouse Design - At present, almost every company in both industry and service and other industries has a certain room used to store goods. The room can be large or small size depending on the number of items contained in the room. In the room, there are valuable or worthless items but obviously, the goods have value. Whether the value is still economical or not.

The room is usually called a warehouse. With such conditions, a warehouse is a very important place for the company, because there are warehouses of the company stored that will affect the company's operations.

Therefore, the warehouse is very important to be laid out and seen its performance every given period so as not to cause losses or obstacles for the company.

In its development, the current storage can be done within the company as well as outside the company and even some are given management to the third party.

This is done so that the assets stored in the warehouse can be controlled in terms of the amount or value so that it can be determined how much amount or value needs to be stored. These restrictions are in place to clarify the capital that the company must provide or play.

Core Processes in Warehouses

Managing a warehouse can be referred to as an easy job because the process consists of only 4 processes, namely:

Receipt of Goods
Luggage Storage
Delivery of Goods
Logging or reporting

The four processes seem simple, from the existing word but if viewed from the consequences will jeopardize the continuity of the company.

1. The first is the process of receiving goods. In the process of receiving that occurs in the warehouse is the warehouse personnel receive goods handed over by the other party to the warehouse section. Very simple is not the process of receiving a stunning happening.

However, if in the process of receiving such an error of goods received related to:

Type
Specifications
Amount
Brand
Size
Recording

If this happens it will result in problems in the next process that require the goods.

2. The second is the process of storage of goods. After the first process as an advanced process, storage becomes very important if:

Availability of goods
Advantages or disadvantages of goods stock
Difficulty finding stored items
An error occurred in placing the goods
mixed that could result in damage to stored goods
Difficulty picking up stored items

Incorrect storage logging :

a. Location

b. Number of

c. Age

As a result, the following will happen:

Damage to stored goods
Loss of stored items

The result of the second process is the value of the assets stored and the smooth running of operational activities.

If the value of the stored asset cannot be controlled it will result in the company's financial turnover not smoothly and settle in the form of goods. The longer the goods settle or are stored in the warehouse the more detrimental the company will be, unless the goods are stored in the warehouse when the acquisition is long enough.

3. The third is the process of delivery or delivery. In principle, the warehouse will not hand over goods, issue goods, or deliver goods if there is no request or order from the owner of the goods or authorized.

In the process of delivery or delivery of goods preceded by the process of:

Request for goods or goods delivery orders
Pick up
Follow-up process before goods is delivered or shipped, such as; packaging, labeling.
Recording of goods to be handed over or shipped

As with the first process, in the third process of submission or delivery, there can be errors related to:

Type
Specifications
Amount
Brand
Size
Recording

The result of the third process is the smooth running of operational activities, especially if the goods will be carried out for advanced processes.

4. The fourth is the process of logging, logging, or reporting. In this fourth process, it can affect the previous 3 processes. For that in logging, logging or reporting must be 100% accurate.

If the logging, logging, or reporting process is inaccurate it will result in:

The value of the company's assets becomes pseudo
Shortage of oversupply
Deadstock is not controlled

Seeing the importance of the role of warehouses in the company's operations as well as the performance of the company, the warehouse needs to be carried out performance assessment. Assessing performance is not easy because the assessment should be based on the objectivity of the warehouse's work.

Sometimes in assessing warehouse performance often place more emphasis on the subjectivity that occurs, for example; Human resources are not able to because they are less thorough or can not work on the processes that are in the warehouse, while that HR is not informed about the provisions or rules that must be implemented. To assess warehouse performance we can use the Key Performance Indicators (KPI's).

Key Performance Indicators

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Key Performance Indicators is an indicator used to measure the progress of work compared to a set target. Determining the size of performance should be in common with the vision, mission, objectives, and objectives of the company.

Currently, KPI's is one thing that is very important for the company so that its performance can be known by the agreed size. So it can be seen whether the personnel or HR or team in the company are performing well or not, supporting or not with the vision, mission, objectives, and objectives of the company. That measure is expected to judge teams, HR, or organizations more objectively.

It is important to understand and know that creating a performance measuring instrument is not easy and needs clear research and study so that the measuring instrument is not a story only.

Therefore the measuring instrument must be:

Specific, meaning a KPI must be clear
Measurable, Meaning a KPI must be Measurable
Achievable, Meaning a KPI must be achievable
Relevant, Meaning a KPI must be under the work done
Time Base, meaning a KPI must have a time size
Thus, the measuring instrument can be objective

Also, in making or designing measuring instruments (KPIs) must be:

Relevant to the goal. The point is that the measuring instrument has a connection to the targets and targets that have been set by the company. So if the measuring instrument is not under the target then the measuring instrument cannot be used
Easy to control. Measuring instruments should be easy to control. The control tool that can be used is data or documents. So if we are going to create KPI's but no data or documents or data and the document cannot be created, then the measuring instrument shouldn't be used
Follow-up can be done. The intention is to achieve the KPI's can still be done improvement activity or improvement to the process, but if we set KPI's but the KPI's can not be achieved even though we have made changes then better KPI's are not used
Simple. Such KPIs should be easy to explain or understand by each team that will be measured in performance. If the KPI's can give rise to different perceptions then the KPI's cannot be used
Credible. KPIs are compiled, it should not be easy to manipulate and can be controlled or cross-checked, so it is believed to be true to the results of such assessments. If the KPIs are easily manipulated and cannot be controlled, it is better not to use them.

Steps To Structure KPI's

Compiling KPIs's need clear steps because it is not as easy as saying KPI's. Here is an overview to compile KPI's to be a guideline in the manufacture of it.

1. Defining Goals and Targets

Keep in mind that goals are steps to achieve goals. While the target is the final result that must be achieved from the target or the result of the work done.
Here the most important thing is the availability of data or documents to see the results of the work. If it does not exist or cannot be created do not be included in the KPI's.
Determine which target or target, whatever is easiest to work with, can target first or target first.

2. Create a KPI's

As mentioned above that KPI's is a measuring instrument than in the KPI's is conveyed how to measure its work. For example; number, ratio, percentage, and another else. And indeed the information is available data and documents
Determining Weight
Determining the weight to note is the difficulty level to achieve it has a greater weight. If there are interconnected or interconnected assessments then it is advisable to have the same weight

Thus an article about KPI Warehouse Design. Hopefully it will be useful to you.