Warehouse Assign Individual 2
Warehouse Assign Individual 2
Warehouse Assign Individual 2
GROUP A
SESSION 2022-2023 (A221)
INDIVIDUAL ASSIGNMENT 2
KENCO LOGISTIC
1. SHIPMENT ACCURACY..........................................................................................................6
2. INVENTORY ACCURACY........................................................................................................6
4. PACKING ACCURACY............................................................................................................8
5. PUTAWAY ACCURACY..........................................................................................................9
6. PRODUCTIVITY RATIO........................................................................................................10
REFRENCES....................................................................................................................................11
1.0 BACKGROUND OF THE COMPANY
Kenco is the premier third-party logistics company (3PL) in the United States. We provide
integrated logistics solutions including distribution and e-commerce fulfillment, comprehensive
transportation management services, material handling equipment services, engineering and
innovation consulting, and information technology. They are all designed for operational
excellence.
For over 70 years, we have built decades-long customer relationships. We take corporate
responsibility seriously by committing to ethical, honest and sustainable business practices. Our
agile, customer-focused, data-driven approach ensures we deliver real solutions and real results
to our clients. Our story began in 1950 with a single warehouse in Chattanooga, Tennessee,
with just two employees.
Jim Kennedy Jr. and Sam Smart. Our company's history is steeped in ever-evolving innovation,
but it wasn't until Kenco co-founder Jim Kennedy Jr. drafted the industry's first management
fee contract and DuPont warehouse contract in 1969. Our biggest early achievement. Even
more impressive is the fact that DuPont remains a Kenco customer to this day.
Since its first contract in 1969, Kenco has grown into a fully integrated logistics provider,
managing 116 logistics facilities covering 40 million square feet. Kenco currently serves over
350 customers with a variety of logistics needs in various industries.
Kenco is a private company with an estimated 1,735 employees. In the US, the company has a
notable market share in at least one industry: Public Storage & Warehousing, where they
account for an estimated 3.7% of total industry revenue and are considered a Golden Goose
because they display medium to strong market share and strong profit, but slower revenue
growth than some of their peers.
Kenco identified the potential early on and has taken the lead in assisting clients on their road
to supply chain transformation by building a world-class Advanced Data Analytics and Business
Intelligence capabilities.
3.0 6 KEY QUALITY INDICATORS
1. SHIPMENT ACCURACY
a) Definition
The consistency between a customer's order and what is delivered is referred to as
shipping accuracy. It essentially implies that an order's precise amount and SKU must
match a customer invoice and that it is delivered to the correct destination on time.
Accurate fulfilment guarantees that the consumer receives the exact product they
bought – the correct make, model, and colour — at the correct time and location.
b) Formula
Order accuracy rate = (Total orders fulfilled accurately / Total orders fulfilled) * 100
c) Question, calculation, and answer
Let’s walk through a quick example. If you fulfilled 100 orders, and 2 of them had
mistakes, then your order accuracy rate is 98%. See the calculation below:
2. INVENTORY ACCURACY
a) Definiton
The discrepancy between recorded stock and actual inventory is measured as inventory
accuracy. If you have 100 pieces in your stockroom but only 80 in your inventory
management system, your inventory accuracy is 80%.
Inventory accuracy aids in the retention of consumers. They will not order things that
are out of stock, which is extremely beneficial to them. Furthermore, you'll have a
better notion of which goods are selling, allowing you to push them further and make
the whole client experience more pleasant. As a result, your company will flourish and
consumer loyalty will improve.
b) Formula
inventory accuracy = [counted items / items on record] * 100
c) Question, calculation, and answer
your company sells phone cases, and you count 1,000 cases at your warehouse.
According to your records, you should have 1,020 cases in stock.
In this scenario, you'd divide 1,000 by 1,020, then multiply by 100. When rounded, this
gets you an answer of 98. This means your phone cases have a 98% inventory accuracy
rate.
d) Explanation
Start by counting how many units you have in stock of a specific SKU. Then, divide that
number by the recorded stock count of that same SKU, and multiply by 100.
When calculating your brand's inventory accuracy rate, keep in mind that the formula
only works if you have a reliable stock count. You can either use a physical inventory
count or opt for inventory valuation to inform your calculations.
4. PACKING ACCURACY
a) Definition
means the guarantee provided by the manufacturer of the Goods from time to time as
of the date of acceptance of the Statement of Work; The Personal Property Securities
Act is abbreviated as "PPSA." "Price" refers to the sum indicated in each Statement of
Work (subject to any Variation) or as otherwise defined by the Company to the
Customer as the cost of the Works. "Related Work" refers to any extra construction,
carpentry, painting, plastering, plumbing, or other work or trades required by the
Customer that are not to be performed by the Company. "Services" refers to the
services supplied by the Company to the Customer as part of the Works, which may
include, but is not limited to, Goods installation. The term "Services Delay Charge" refers
to the service delay charge.
b) Formula
(Number of Accurate Orders Picked / Total Number of Orders Picked) x 100
c) Question, calculation, and answer
You picked 1,000 orders in the month of December
Out of these, 900 orders were picked accurately and 100 orders were picked
incorrectly
Based on this data, your order picking accuracy in the month of December =
900/1000 = 0.9
Order picking accuracy (OPA) (%) for the month of December = 90%
d) Explanation
you want to know how accurate you or the 3PL you partner with is amidst the busyness
of day-to-day picking and packing. Making sure the correct number of items are going
out in any given shipment and that the correct items are being picked for each order
isn’t necessarily that difficult. But when an influx of orders comes in and deadlines must
be met, speed can sometimes have a detrimental impact on precision.
5. PUTAWAY ACCURACY
a) Definition
When the goods arrive in the warehouse, the putaway process begins by placing each
item/piece in a predefined location chosen for the most convenient retrieval. We have
various put-away processes such as direct put-away, directed put-away, batched and
sequenced put-away, and interleaving.
Putaway accuracy: Percentage of the number of items put away accurately at the
designated location.
b) Formula
(Inventory Put Away Correctly) / (Total Inventory Put Away) = Accuracy Rate
c) Question, calculation, and answer
To calculate order picking accuracy, you will need to have checking steps built into your
picking process to catch errors before picked orders end up on the back of trucks. As
part of the process, your checkers will need to record the number of inaccurate orders
they catch (and, of course, they will need to ensure the errors are corrected).
d) Explanation
effective and efficient put away process is one of the most critical components of good
warehouse management because it has downstream effects on fill rates, which can lead
to congestion in staging areas. Accuracy rate refers to the percentage of items put away
correctly the first time; the higher your warehouse’s accuracy rate, the more efficient
your put away process, with the ultimate goal of a 100% put away rate.
6. PRODUCTIVITY RATIO
a) Definition
The labour productivity ratio is a measure that expresses the number of work units
generated per hour of work. Productivity ratios effectively measure output/input, with
time spent as input and work units as output.
As long as a valid work unit can be recognised, the ratio may be used to assess
productivity for most forms of work. Labor productivity is easy to determine for an
industrial worker. If a worker makes 1000 widgets in a week, the productivity ratio may
be 1000/40. For a writer, the situation is less clear, but a work unit could be the number
of words or pieces of content produced per day or week.
b) Formula
The formula is output / input = productivity.
c) Question, calculation, and answer
a company earns $500,000 per month selling plush toys, 10 employees responsible for
creating the toys work 1600 accumulative hours in the month, then $500,000 would
represent the output and 1600 would represent the input?
REFRENCES
What is labor productivity ratio? - Definition from WhatIs.com. (2019, July 1). WhatIs.com.
productivity-ratio
Warehousing KPI Cheatsheet | Top Metrics & Formulas. (n.d.). Warehousing KPI Cheatsheet |
https://www.tryresponse.com/post/warehousing-key-performance-indicator-cheatsheet
RESOURCES, D. (2020, April 9). Key Performance Indicators for effective Warehouse
Operations - Data Labs India. Data Labs India. Retrieved November 30, 2022, from
https://www.datalabsindia.com/blog/key-performance-indicators-for-effective-
warehouse-operations/
Krug, K. (2015, March 29). Top Warehouse Performance KPIs | LEGACY Supply Chain.
https://legacyscs.com/warehouse-kpis-to-measure/
Warehousing KPI Cheatsheet | Top Metrics & Formulas. (n.d.). Warehousing KPI Cheatsheet |
https://www.tryresponse.com/post/warehousing-key-performance-indicator-cheatsheet
Kukolj, G. (2020, May 11). Shipping and Delivery Accuracy: How to Minimize Errors and Maximize
https://optimoroute.com/shipping-accuracy/
Callarman, S. (n.d.). How to Increase Order Accuracy Within Fulfillment Centers. ShipBob. Retrieved
Warehousing KPI Cheatsheet | Top Metrics & Formulas. (n.d.). Warehousing KPI Cheatsheet | Top
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https://www.tryresponse.com/post/warehousing-key-performance-indicator-cheatsheet
Reid, H. (2022, June 25). What Is Fill Rate? (Definition, Types and How To Calculate) | DCL
https://dclcorp.com/blog/fulfillment/fill-rate/
Flora, M. (n.d.). What is Fill Rate? Definition, Formula, & Calculation. ShipBob. Retrieved
Warehousing KPI Cheatsheet | Top Metrics & Formulas. (n.d.). Warehousing KPI Cheatsheet |
https://www.tryresponse.com/post/warehousing-key-performance-indicator-cheatsheet
SHIPMENT ACCURACY Definition | Law Insider. (n.d.). Law Insider. Retrieved November 30,
https://www.eshopbox.com/blog/order-picking-accuracy#:~:text=Order%20Picking
%20Accuracy%20(OPA)%20is,of%20time%2C%20as%20a%20percentage.
Warehousing KPI Cheatsheet | Top Metrics & Formulas. (n.d.). Warehousing KPI Cheatsheet |
https://www.tryresponse.com/post/warehousing-key-performance-indicator-cheatsheet