What is System Utilization?
System utilization is the action of using something, i.e., making practical and effective use of it. Put simply; the term refers to the use of something or the process of using it effectively. In the supply chain industry, utilization may also refer to the percentage of available time that a machine, device, warehouse, or employee is actively is working.
We can also use the term for a fraction of the available time that a system is operating.
In a warehouse, space is essential, so warehouse space utilization measures the efficiency with which the warehouse uses its inventory storage capacity. Low values for this KPI may suggest that the warehouse is too large, inventory is being stored in improper places, demand forecasting is not accurate or that inventory replenishment processes are slow.
Warehouse Management System Benefits for Today’s Operations
The supply chain has changed dramatically over the last 10 years in so many ways that it can be hard for some to keep up with. Increases in freight and transportation have made these costs higher than distribution centre labour in many businesses. The cost and quality of labour throughout your supply chain can be challenging. One way to get ahead of this constantly changing landscape is using robust Warehouse Management Systems (WMS). Whether you are running an ecommerce site, retail chain or are a manufacturer or distributor, these systems can bring increased controls to labour, inventory and transportation.
The Benefits of Regular System Utilization
With a proper system in place, your warehouse or freight forwarding business can thrive in many ways:
- Advanced shipping notices, receipt planning, scheduling inbound labour and scheduling transportation appointments.
- Controlling the movement and storage of materials and product (e.g. management of slotting, inventory location control, cube utilization, inventory accuracy, etc.).
- Improved accuracy, timeliness, and overall throughput of customer orders throughout the fulfilment processes.
- Improved warehouse labour management through tracking and control including work order controls, productivity reporting at department and employee levels.
- Flexibility in handling different order and product profiles (e.g., ecommerce small orders, case pick to stores or wholesale customers, bulk distribution for manufacturing, etc.).
- Better control of production, assembly and job costing of kits/sets and assembled product.
- Visibility to warehouse activities and access to data (e.g., reporting, analysis, and dashboards).
- Interface to Warehouse Control Systems (WCS) for material handling equipment and automation (e.g., conveyors, sortation, etc.).
How Meraki Consulting can help
Our industry knowledge and expertise allow us to assist you by offering customised system utilization checks for your supply chain or freight forwarding business. Meraki Consulting also offers training and consulting in CargoWise One, a system aimed at optimising your business.
In addition to this, our other services include project management, consulting, business process design and systems integration.
Contact us to find out how our services can help your business move forward.