Part Three of The Importance of Measuring and Utilizing KPIs in Warehousing

This article is part three of our six-part KIPs in Warehousing series. Click here to read part one: The Importance of Measuring and Utilizing KPIs in Warehousing

Put-Away:

Once receiving activity is completed, the accepted merchandise must be stored in a location that is convenient to retrieve for further action. This process is called put-away which can consist of several different types of functions:

• Direct Put-away – Put-away directly to primary or other locations.
• Directed Put-away – Put-away directed by Warehouse Management System.
• Batched and sequenced Put-away – Received material sorted and put-away processed in batches to maximise the efficiency.
• Interleaving – Combine put-away and retrieval to avoid empty travel.

Evaluating put-away through key performance indicators gives you a clear picture of potential inefficiencies in the process. Recognizing snags such as inaccuracies or insufficiency of labor will help you to optimize and streamline the process.

The KPIs for this activity could include the following:

1. Putaway Cost Per Line
   Expenses incurred for putting away stock per line, including labor, handling, and equipment costs.
2. Putaway Productivity
   Volume of stock put away per warehouse clerk per hour.
3. Putaway Cycle Time
   Total time taken during the entire process of each put-away task.
4. Putaway Accuracy
   Percentage of number of items put away accurately at the designated location.
5. Labor and Equipment Utilization
   Percentage of the labor and material handling equipment utilized during the
6. put-away process.

Tips for improving put-away efficiency

• Organise and set up your warehouse in a logical way. Maximize the floor layout to speed up put-away. Arrange warehouse space with popular items stored near the front rather than at a distance. Place like items together to make items easier to find
• Assign each SKU to a specific warehouse bin location for quick put away.
• Adopt a digital put-away system with the use of a barcode scanner.