When developing operational metrics for the distribution center, it’s important to complement your company’s long-term strategies in the measurements, says Doug Smith, senior director of direct-to-consumer operations for Western wear apparel merchant Sheplers.
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Misalignment of metrics can impede future goals and also have a negative impact on your customer’s experience by focusing on the wrong operational attributes.
By creating a blended scorecard of your most important metrics, it’s easy to identify the relationships between each and find the most effective balance to achieve your goals. For example, when labor cost per order is increased there can be a specific increase in order turnaround time.
If you want to know more, Smith will be speaking on this topic at the Operations Summit in Memphis May 2-3. For more information, go to www.operationssummit.com.