PHASE 3
COMPARE
PHASE 4
ACT
Step 4: Research and Compare Best-in-Class Performance
Numbers only reveal so much. Dig deeper to find out how the DCs you’re measuring yourself against achieve
high levels of service. Measure against internal standards, too. There are no hard-and-fast rules on how to do this.
WERC’s Warehousing & Fulfillment Process Benchmark & Best Practices Guide can help. It identifies 8 warehouse
processes and best practices for each. Practice, practice, practice to perfect the process.
Step 5: Identify Performance Gaps
Define the reasons for low performance.
• Use the measures that best support your priorities.
• Compare your performance to best-in-class companies.
• See where you fall in our benchmarking categories:
o Major Opportunity to Improve: Bottom 20%
o Disadvantage: 20-40th percentile
o Typical: 40-60th percentile
o Advantage: 60-80th percentile
o Best Practice: Top 20%
Where to start?
• Start with the areas where gaps between your company’s
rating and best-in-class performance are largest, then
work your way down to medium and low gaps.
• Concentrate on what’s strategically important to your
organization.
Step 6: Develop an Improvement Roadmap
Establish a target for each metric that needs improvement. Set priorities. Not all targets have to be best in class.
Set the highest targets for the metrics that align with top company goals.
TIP: Targets should include:
Near-term goals (reasonably attainable).
Long-term goals (to mark improvement over time).
HI
MED
LO
Step 7: Close the Gaps, Improve and Refine Processes
Now you're ready to focus on closing performance gaps.
Need help with this step? Take a course on process improvement
from WERC or a local college or university.
DON'T STOP NOW
Start all over from the top. Benchmarking is a continuous process.
To get a copy of our 2015 DC metrics survey, visit www.werc.org/metrics
Chart based on information from WERC’s “Unleashing Best Practices in Your Warehouse: Warehouse Manager’s
Guide to Benchmarking,” 2nd edition, ©2010 Supply Chain Visions and WERC. All rights reserved.
