11 Sep 2023

What is Warehouse Productivity?

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What is Warehouse Productivity?

If you’re working in the logistics business, then warehouse productivity is one of the most important statistics that you can measure your warehouse efficiency by. Warehouse productivity defines your output, and has a direct impact on how well your business functions in comparison to competitors. Large companies like Amazon or Wish put a lot of time and work into keeping their warehouse productivity up: that’s why they’re at the top when it comes to quick and convenient delivery.

What is Warehouse Productivity?

Here’s how warehouse productivity works, broken down into the various elements that make it function better.

Financial Turnover

The first way to measure warehouse productivity is by considering your financial turnover. The higher your level of productivity, the higher your potential turnover is going to be. While that’s not true for every situation, a sudden dip in your turnover is a great indicator that you should try to increase your levels of productivity in the warehouse.

Accuracy of Orders

It’s important for a warehouse to make sure that orders aren’t just high-output, but also maintain a high accuracy rate. Productivity only counts when the system is doing what it’s supposed to: otherwise, you’re going two steps forward and three steps back.

The higher your accuracy rate, the better your productivity.

Labor Productivity

The effectiveness of an entire supply chain depends on its workforce, working together as a unit – but also working hard individually to achieve that magical synergy as a group. How well workers are able to function has a direct impact on how well the entire warehouse will work together. The better your workforce collaborates, the higher your potential turnover could be.

Reward employees who are doing their best, and have employee initiatives in place that can motivate the group as a whole. Incentives can improve the quality of the workplace and also improve the quality of the work.

Warehouse Capacity

Warehouse capacity has to be applied in the right ways for warehouse productivity to be consistent. A warehouse that isn’t using the available space to the maximum (or using it wrong) could be eating into its productivity.

Make sure that your warehouse is best-used, and located in the best possible place. Productivity isn’t just about pushing out orders from the warehouse, but also about effective use of long-term storage.

On-Time Shipments

Once accuracy and the workforce have been talked about as elements in the supply chain, it also matters to make sure that all of your shipments are on time. On-time shipments guarantee that there’s more time for further work – and this is a sure way to increase your productivity in almost any business.

What makes on-time shipments happen with ease?

A coordinated workforce using the most updated equipment and the best processes at their disposal. Assess the state of your warehouse operations often if you notice a slip in shipment times or a change in warehouse performance.

Health & Safety

The health and safety of your employees should never be an afterthought: warehouse productivity relies on the health of your human resources, and safety should be the first thing on any warehouse manager’s mind.

When employees feel safe in their work environment, it can have a positive impact on your warehouse productivity. A potentially unsafe workplace doesn’t exactly inspire anyone to do their best on the job!

Make sure that all employees are aware of safety regulations, and that these regulations are well enforced during work hours by a trained supervisor.

Embracing Digital Solution

The rest of the world (and many of its industries) have gone digital. Almost no warehouses should be trapped in the paper age – and if yours is, it’s time to make some serious changes.

Embracing digital solutions can increase your productivity, and helps a lot for ease-of-use.

Find the most updated warehouse management solutions to increase your warehouse productivity.

Nebraska Warehouse One-Stop-Shop | Technology Enabled 3PL Value-Added Services Warehouse | Freight Broker | Logistics

Nebraska Warehouse doesn’t just help to facilitate your shipments, but we are truly a one-stop-shop solutions provider. Our services include: