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Don't Be a "Fulfillment" Settler: Metrics, ROI & Reporting

by Robert Hartley on 2016-03-29 16:05:11

When it comes to your ecommerce or omnichannel order fulfillment, you don’t have to settle for a mediocre KPI report card. It's hard to believe that anyone would sacrifice their service just to stay with their current 3rd party fulfillment provider. But unfortunately, this happens. These metrics directly affect your bottom line, so make sure you, and most importantly your customers, are being well taken care of.metric_ruler.jpg

We have touched on why KPIs are important in some of our past blogs. They give you the ability to evaluate the warehouse, measuring their performance in order to benchmark against the competition and explore the possibility to improve in order to gain a competitive advantage. Costs, time, space, people and systems drive the performance inside the warehouse.

These areas should be reported on weekly, monthly, quarterly and yearly to your customers who need to make sure your warehouse is not only keeping up to your benchmarks, but exceeding them. This is the service you get with IDS Fulfillment.

KPIs for warehousing focus on receiving, put away, storage, pick and pack and shipping. Detailed reports regarding inventory accuracy, dock-to-stock, productivity and on-time shipping are a must. For transportation, you should be tracking on-time final delivery, cycle time and delays or detention percentages. When choosing your 3rd party fulfillment provider, do your homework to ensure the 3PL understands the level of performance you need to see.

Make sure that you are not settling on performance and be sure that your 3PL offers accurate and detailed reporting capabilities. Whether that is through an online portal or a weekly/monthly spreadsheet, a 3PL should be open with this information for each customer and metrics for the entire warehouse. Make sure to put these metrics in the contractual agreement and enforce the warehouse to maintain these standards.

Remember that KPIs are significant for continuous improvement and increasing the efficiency of your operations and directly affect your ROI. Don’t settle for poor performance from your 3PL!

For more information on IDS or questions you should be asking a 3PL partner, please contact us at www.idsfulfillment.com/.

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