Identifying Gaps in Warehouse Operational Efficiency PPT

This PPT slide, part of the 33-slide Supply Chain Cost Reduction: Warehousing PowerPoint presentation, presents an analysis of warehouse efficiency, highlighting significant performance gaps in operations. A McKinsey study assessed 40 diverse facilities worldwide, revealing that actual performance in warehouses falls short by 20-50% compared to an ideal "clean-sheet" model. The visual representation shows 3 key benchmarks: actual performance at 81.6 picks per hour, a clean-sheet target of 122.4 picks per hour, and a retail benchmark of 170.0 picks per hour.

The slide identifies specific shortcomings contributing to these gaps, such as layout inefficiencies and inefficient processes. Issues like excessive storage distance, poor picking layout, and time-consuming tasks like labeling and checking are noted as critical factors undermining efficiency. The retail warehouse's superior performance is attributed to reduced walking distances and better economies of scale, which are essential for optimizing labor productivity.

Furthermore, the research indicates that many warehouses have not adapted to evolving business needs. Originally designed for specific objectives, these facilities have only seen minor adjustments over the years, failing to address increasing product complexity, mergers, new technologies, and changing supply chain structures.

The conclusion emphasizes that while technology is important, it is not the primary driver of effective warehouse operations. Instead, streamlined processes and facility layouts are crucial for enhancing performance. This insight is vital for decision-makers considering improvements in warehouse operations, as it underscores the need for a comprehensive evaluation of existing processes and layouts to achieve significant efficiency gains.

This slide is part of the Supply Chain Cost Reduction: Warehousing PowerPoint presentation.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Supply Chain Analysis Cost Reduction Assessment Lean Management Warehouse Management Supply Chain Cost Reduction Warehousing

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group

"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)

"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I

... [read more]

– M. E., Chief Commercial Officer, International Logistics Service Provider

"I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

– Trevor Booth, Partner, Fast Forward Consulting

"As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for

... [read more]

– Jim Schoen, Principal at FRC Group

"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory

"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World

"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC