Heritage Logistics Group

"Your Source for Supply Chain Solutions"

 

All warehousing and distribution operations must have measurements that assist in quantifying their productivity and efficiency. As a Third Party Logistics (3PL) provider HLG utilizies a number of these measurements for our clients in concert with our operations providers. The following are some of those mesasurements and their place in the overall delivery of services in a distribution/warehousing environment.

Materials Handling Labor Ratio = Materials handling time spent by direct labor / total direct labor time. This measures the size of our materials handling work force as a proportion of all personnel.

Inventory Fill Rate = Line item demand filled per day / Line item demand per day. This is an "out-of-stock" measurement that can also be used to measure order demands.

Movement Operation = Total number of moves / Total number of productive operations. This can be of help in measuring the overall handling ysstem from packing to dock.

Storage Space Utilization = Storage space occupied by product / Total storage space. This formula measures the cube utilization of a facility.