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Internet basedDataEnvelopmentAnalysisforWarehousing Outline TheproblemThecurrentsolutionTheneedAnewsolutionHowitworksInternetdeploymentandresultstodateFuturedirections PerformanceAssessment Howwellareyouperforming Doyouhaveopportunitiestoimprove WarehouseOperations ReceivingFunction inbound Unload Inspect PutAway StorageFunction ShippingFunction orderfulfillment Load Pack OrderPick StorageFunction StorageFunction SingleFactorProductivityMetrics Productivity TraditionalPerformanceMetrics FillrateInventoryturnsLines hourOrders hour line order Workokwhen RequirementsarenotchangingTechnologyisnotchangingCompetitionisnotchanging It sveryhardtointerpretasinglefactorproductivitymetricwhentheenvironmentissubjecttorapidchangeinproducts customerrequirements technology orcompetition Butinadynamicworld Can tcompareovertimeCan tcompareacrosslocationsCan tcomparetoothercompaniesAtleastnotwithoutalotofadditionalexplanatorydataandinformation Benchmarking Relativeperformancelevel Best effective practices INPUTS OUTPUTS System orientedPerformanceMeasure TheNeed Resources Services Activities TotalFactorProductivity Can tsolvethepricingproblem INPUTS OUTPUTS ONEPERFORMANCEINDEX DataEnvelopmentAnalysis Resources Services Activities System basedassessmentmethod Resources capital labor overheadActivities inbound orderfulfillmentServices lines qtyshipped fillrate etc Comparetootherwarehouses AllotherwarehousesAllotherwarehousesinyourindustryAllotherwarehousesinyourcompanyYourwarehouseinthepast ProductionFunctionTheoryforoneinput oneoutput Resource Input Production Output SystemEfficiencyConcept Resource Input Production Output O B A SystemefficiencyofwarehouseBistheratioOAOB DEAModel Charnes Cooper andRhodes ConstantReturnstoScale DataEnvelopmentAnalysis Allowsustoconsidermultiple inputs Allowsustoconsidermultiple outputs Determinesthereferencepointontheproductionfunctionbyconstructingahypothetical bestpractices warehouseusingrealwarehousedataBestpossible notaverage fromdata DEAPerformanceScore ContributiontoProfit Input OutputSpecification theFrazelle Hackmanmodel Efficiency Warehouse LinesShipped StorageFunction Accumulation TotalStaffing Equipment Replacement Cost Warehousearea Htmldocuments Solver Database Atyoursite GTServer Web basedTool Overtheinternet Over150qualifiedusers ResultstoDate Experience ExistingdatabaseMorethan150warehousesNotsegmentedbyindustry yet No descriptive datatouseforsegmentingCansegmentbasedoninputsandoutputs OutputSegmentation brokencase 49fullcase 32pallet 13mix 65total 159 Input oriented all159together BrokenCase InputEfficiencyComparedtoAll 49 159 BrokenCase InputEfficiencyComparedWithin 49 49 PickRateforBrokenCasePicking Ave 17SD 27 Fullcase InputEfficiencyComparedtoAll 32 159 Fullcase InputEfficiencyComparedWithin 32 32 PickRateforCasePicking Ave 14SD 27 7 Pallet InputEfficiencyComparedtoall 13 159 Pallet InputEfficiencyComparedwithin 13 13 PickRateforPalletPicking Lines Laborhour pallet 0 2 4 6 8 10 0 0 10 0 20 0 30 0 40 0 50 0 100 0 150 0 200 0 More lines laborhour Frequency Ave 25SD 27 7 Mixed InputEfficiencyComparedtoall 65 159 Mixed InputEfficiencyComparedWithin 65 65 PickRateforMixedPicking Lines LaborHour mix 0 10 20 30 40 50 60 0 00 20 00 40 00 60 00 80 00 100 00 lines laborhour Frequency Ave 10 6SD 23 AggregatePickRateforAll159 Wheredowegofromhere ManyOpportunitiestoImprovetheBenchmarkingTool Enhancethebasicinput outputmodelEnhancetheabilitytobenchmarkfortechnology practice requirements SomeSuggestedMetrics InputsSpaceCapitalLaborInventory ofskusturns OutputsInboundreceiptmixreceiptvariabilityreturnstimetoavailabilityFulfillmentpickvolumepickvariabilitypickaccuracyfillrate but Sorta Marker Analysis Performance Marker Attribute DEAPerformanceScore Performance Marker Practice DEAPerformanceScore Results Biggerisnotalwaysbetter atleastwithregardtoequipmentandlabor Thereis however someevidencethatmorewarehousespaceleadstobettersystemefficiency Laborhourswasnotfoundtobeasignificantfactor byitself inpredictingsystemefficiency However theinteractionoflaborwithinvestmentwasfoundtobesignificantinthesensethatlaborhoursmitigatestheeffectofinvestment inotherwords thoughhighinvestmentwarehousestendedtobelessefficientthanlowinvestmentwarehouses thedifferencesbecomeslessprominentthehigherthelaborhours MoreResults Theinteractionofinvestmentandareawasfoundtobesignificant Thismeansthathighinvestmentwarehousesareevenlessefficientiftheyarealsolarge Nomatterhowwesegmentthedata averylargeproportionofwarehousesareoperatingatorbelow50 systemefficiency Whilethismayreflectseasonalfluctuationsincustomerorders itstillrepresentsaverysignificantopportunityforimprovement MoreResults Theopportunityforimprovementseemslargestforthesegmentofwarehousesdoingpredominantlyfullcasepicking Inthatsegment asmallerproportionofthewarehousesare efficient thaninanyothersegment andalargerproportionareoperatingbelow50 efficiency OtherDataRequirements Type wholesale retail manufacturing Industry pharma auto electronics OrdervolumeSkuspreadOrdersizedistributionPallet case eachdistributionPlanninghorizonDegreeofautomationPushvsPullPickingstrategy Sorta StillMoreDataRequirements PracticesWMS Compliantshipping Spaceutilization VelocitybasedslottingetcDiagnosticscost
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