How to Measure Productivity in Receiving & Shipping

Receiving and shipping productivity is key to customer satisfaction.

In both good and bad times, the productivity of the receiving and shipping department is vital in maintaining market share. The way a customer receives a package, also known as logistics, can have a huge effect on the customer's experience and may determine whether the customer comes back to order from your company again. As a result, it is important to measure the productivity of receiving and shipping in your organization. Several different performance indicators can help with this.

Instructions

1. Include both internal and external orders in the productivity reports.

2. Determine the number of lines shipped and the percentage of these shipments that were shipped late. Track this as a measure of shipping productivity over time.

3. Monitor the trend of shipments made early, late or on time. The goal is for more shipments to be made on time rather than late. However, early shipments might be OK, depending on the customer's instructions.

4. Determine the number of lines shipped per day, week and month. This will help provide a gauge for low or high productivity in time period buckets.

5. Calculate the lines late to promise. This is the total number of lines shipped late or after the promise date. The calculation is number of lines shipped late divided by lines shipped, multiplied by 100 to get a percentage.

6. Calculate the book to ship days. This key performance indicator shows the average number of days between booking a sale and shipping the order. The calculation is shipped date minus firmed date. The firmed date is the date the payment is confirmed on the order. If this is not available, you can use the date the order was booked.

References

• Dashboard Zone: Performance Dashboard --- Shipping Management Dashboards and KPI