Bright Idea

Using a concept called data envelopment analysis (DEA), a Georgia Institute of Technology research team has developed an Internet-based tool for benchmarking warehouse performance. The tool allows individual warehouses to conduct self-assessments online. Users must register and log in, then enter their data, a process that should take less than an hour. The program, iDEAs-W (Internet-based DEA for warehousing) computes a comparative benchmark score based on data from over 150 other warehouses and responds within minutes.

Current data offer several intriguing insights. For instance, the statistics suggest that large equipment investment does not correlate with lower labor costs; in fact, the opposite is true. They also show that only about 10% of warehouses are efficient — over two-thirds have efficiency scores below 50%. Warehouses with high investment costs tend to be less efficient if they are large, and warehouses that do mostly full-case picking demonstrate, in the diplomatic language of the report, the largest opportunity for improvement.

The iDEAs self-assessment tool, which is free, is available at www.isye.gatech.edu/ideas. For more information, contact Leon McGinnis at (404) 894-2312 or by e-mail at Leon.mcginnis@isye.gatech.edu.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.