Skip to content
Search AI Powered

Latest Stories

inbound

Performance against DC metrics may be starting to plateau

Preliminary results of the annual DCV/WERC metrics study show improvement in fewer areas than in past years.

What goes up must come down … and based on what we're hearing from respondents to this year's study of distribution center metrics, that may well be the case when it comes to warehouse and DC performance.

The 2015 research—our 12th annual study—was conducted among DC Velocity readers and members of the Warehousing Education and Research Council (WERC). Respondents were asked what metrics they use and how well their facilities performed against more than 40 metrics in 2014. We'll detail the results in DCV's May issue, but in the meantime, here are a few highlights. When it comes to how facilities are performing against the metrics tracked in the study, improvement seems to have stalled after last year's peak. In the 2014 study (which asked about performance in 2013), respondents reported that they had improved (or at least maintained) their performance on a year-over-year basis across a majority of the metrics. For instance, both the "best-in-class" respondents (the top-performing 20 percent of survey participants) and the "major opportunity" respondents (the bottom 20 percent) improved or maintained performance on 32 of the 44 metrics tracked. The "median" performers (the middle 20 percent) made even greater strides, improving or maintaining performance on 36 of the 44 metrics.


The 2015 survey (which covers performance in 2014) indicated that both the "major opportunity" and "median" performers had lost some of that momentum, with the "major opportunity" companies improving or maintaining performance against only 21 metrics, and the "median" performers just 26. Of the three groups, the "best-in-class" performers made the best showing, improving or maintaining performance on 29 metrics. Where did they make those improvements? In the case of "major opportunity" performers, much of the progress was made against metrics associated with the "Perfect Order"—order completeness, timeliness, condition, and documentation. Interestingly, the "major opportunity" performers were the only group that improved against all four of these measures. The survey results also pointed to improvements in operational performance. Both "best-in-class" and "median" performers made gains against what the study categorized as "operational" metrics—measures used to assess internal performance, such as order fill rates and lines received and put away per hour.

In addition to the upcoming DCV article, the study results will be presented at WERC's annual conference, scheduled for May 3–6 in Orlando, Fla. For more information, go to www.werc.org.

The Latest

More Stories

person using AI at a laptop

Gartner: GenAI set to impact procurement processes

Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.

Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.

Keep ReadingShow less

Featured

Report: SMEs hopeful ahead of holiday peak

Report: SMEs hopeful ahead of holiday peak

Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.

That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.

Keep ReadingShow less
retail store tech AI zebra

Retailers plan tech investments to stop theft and loss

Eight in 10 retail associates are concerned about the lack of technology deployed to spot safety threats or criminal activity on the job, according to a report from Zebra Technologies Corp.

That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.

Keep ReadingShow less
warehouse automation systems

Cimcorp's new CEO sees growth in grocery and tire segments

Logistics automation systems integrator Cimcorp today named company insider Veli-Matti Hakala as its new CEO, saying he will cultivate growth in both the company and its clientele, specifically in the grocery retail and tire plant logistics sectors.

An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.

Keep ReadingShow less

Securing the last mile

Although many shoppers will return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.

One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.

Keep ReadingShow less