New Study Benchmarks Distribution Centers' Performance Measures

Almost 70% of senior management says metrics are more essential to DC performance than ever, reveals DC Measures 2006, a new study by the Warehousing Education and Research Council (WERC). But do their benchmarks support their company's market strategy—or undermine it?

More than 900 WERC members and DC Velocity magazine readers were surveyed to identify common benchmarks for critical activities in the distribution center, as well as recognize baseline and best practice performance. The study focuses on actual performance data, allowing readers to compare the results to their own performance, and providing a comparison between year-to-year metrics.

The objective of DC Measures 2006 is to help practitioners:

• Provide a benchmark of key measures by industry and type of business
• Understand how performance of key measures has changed over time
• Link key measures by industry type, supply chain structure and overall strategy

"Our members and others in the industry will find the data enlightening," said Robert L. Shaunnessey, executive director of WERC. "There's not another reliable way to access objective data across a significant sampling of companies. Our study allows managers to evaluate their own facilities' performance in critical areas to similar companies and across the board."

DC Measures 2006 was authored by Karl B. Manrodt, PhD, associate professor at Georgia Southern University, and Kate L. Vitasek, managing partner of Supply Chain Visions.

The study segments companies by type of industry, DC operation, customers served, business strategy and company size. Metrics are categorized as measuring Quality, Time, Productivity or Financial. Key metrics are defined by 35 activities.

This is the third year for the annual study. Participation by vice president and C-level executives increased to 28% from 11.4% last year.

The complete survey is available from WERC at www.WERC.org.

About WERC -- the Warehousing Education and Research Council
The Warehousing Education and Research Council is the only professional organization focused exclusively on warehouse management within the supply chain. More information at www.WERC.org.