Start by Measuring What Matters

When discussing a WMS with prospects, the question often comes up: Does your WMS have this function or that function? My response is simple: Don’t focus on functions if you haven’t measured your baseline metrics.

What baseline metrics are you measuring today?
When prospects reach out about implementing a WMS, the conversation often focuses on features and workflows. However, the real starting point should be your current performance metrics. Understanding what you want to improve ensures the WMS you choose aligns with your goals and delivers measurable results.

Identify Key Metrics for Improvement
What areas of your operation need enhancement? Here are a few common metrics businesses look to improve:

• Order Accuracy: Is your current accuracy level sustainable, or is it costing you time and money?
• Inventory Accuracy: How reliable are your stock levels, and do discrepancies create delays?
• Pick and Pack Times: Are inefficiencies in these processes affecting your order fulfillment speed?

Define Your Current Baseline and Target
Start by quantifying your current performance and setting measurable goals. For example:

• Order Accuracy: If your current accuracy is 92%, and your target is 98%, that’s a 6% improvement goal.
• Pick Rate: Moving from 50 lines per hour to 70 lines per hour represents a 40% improvement.
• Dock-to-Stock Time: Reducing it from 8 hours to 4 hours is a 50% improvement.
• Cost Per Order: A drop from $5.50 to $4.00 equates to a 27% reduction in cost per order.
• Returns Processing Time: Cutting it from 4 days to 2 days yields a 50% gain.

These measurable goals provide clarity on what you’re trying to achieve with a WMS and help prioritise features and functionalities that address these areas.

Go Beyond Data Capture — Think Holistic Solutions
Achieving these improvements often requires more than just a basic scanning application. You need a comprehensive WMS that addresses all aspects of warehouse operations, from picking and putaway to packing and shipping.

A WMS like TBO4 from The RIC Group goes beyond data capture to deliver:

• Increased pick rates and accuracy.
• Reduced returns processing times.
• Lower cost per order.
• Streamlined workflows for faster dock-to-stock and order fulfillment.
• Reduce cost per pick.
• Shipping consolidation.

Evaluate Automation Opportunities
Once baseline metrics are defined, you can then establish further automation opportunities, such as:

• Picking Metrics: Evaluate lines picked per hour, pick accuracy, picker travel distance, and order fulfillment time.
• Post-Automation Targets: Compare current performance against the expected improvements after implementing automation with a WMS.

Looking at the metrics will guarantee that your investment in a WMS delivers measurable results—and ultimately, a solid Return on Investment. I’m frequently asked to create a business case to show potential ROI. My response is often, you will be surprised by the ROI, and that’s because your business hasn’t been tracking the right metrics. To unlock true value, companies need to view the supply chain as a key area for cost reduction and efficiency improvement.

A proven WMS like TBO4 from The RIC Group can deliver transformative results. If your WMS provider isn’t offering real-world business cases that showcase how they’ve helped customers double pick lines per hour, reduce cost per pick, increase order accuracy, or cut processing times, then they may not be the right supply chain partner to future-proof your business.

Want to understand warehouse metrics and how it can help your business? Call us at +61 466 368 934 and build a better bottom line.