specialreport
BY JOSEPH TILLMAN, KARL MANRODT, AND KATE VITASEK
On the up
and up
Our 10th annual study of
distribution center metrics
shows that despite some
bumps in the road, DC
operations continue to improve.
IN THE DECADE THAT WE’VE BEEN TRACKING
distribution center performance through our annual study
on metrics, one trend has stayed absolutely constant: DC and
warehousing operations continue to show slow and steady
improvement. That remains true this year.
In spite of the sluggish recovery, companies are working to improve
their DC performance with an intense focus on the velocity of inventory
flowing through their facilities. This year’s survey found that respondents have been paying particular attention to their inbound operations, and performance against those measures is showing marked improvement as
a result. That’s especially true of the so-called “major opportunity” respondents—those whose performance
ranked in the bottom 20 percent of survey participants and therefore, have the most to gain.
The annual research, performed via an online survey earlier this year, was conducted among DC VELOCITY
readers and members of the Warehousing Education and Research Council (WERC). Respondents were asked
both what metrics they use and how well their operations performed against 44 key DC and warehousing
measures in 2012. (For purposes of analysis, the measures have been grouped into five categories: customer,
operational, financial, capacity/quality, and employee.) The study is jointly sponsored by DC VELOCITY and
WERC with support from Kenco and Kronos.
The study aims not only to determine which metrics are important to DC and warehousing professionals, but
also to understand the underlying trends and changes in performance from year to year. In addition, the research
provides valuable benchmarks against which managers can gauge their own facilities’ performance within the
company and against their competitors. (The full results will be incorporated into a report written by Tillman and
Manrodt and will be available at www.werc.org after the annual WERC conference in Dallas April 28–May 1.)
WHICH METRICS MATTER MOST?
When it comes to the performance metrics used by DC professionals, the survey showed that the top choices
don’t vary much from year to year. A number of this year’s most frequently cited metrics—including “on-time
