Accenture Academy Blog

Warehouses are an integral part of the modern supply chain, involved in sourcing, producing, and distributing goods. Due to the complexities of warehouse operations, they often represent one of the more costly parts of the supply chain, and their efficient management is therefore critical for minimizing cost and contributing to an effective and efficient supply chain.

From a cost standpoint, what separates the best in class from the rest of the competition is the capability to manage the cost per unit handled. Has your company achieved the status of best in class? Today more than ever, distribution professionals must trim warehouse costs while providing an ever-increasing level of customer service and quality. While you may think you have wrung all the costs out of your warehousing or distribution center operation, it is necessary to take another look—even in the best-run operation, room still exists to cut costs.

Equally, you simply cannot afford to postpone cost-cutting efforts. Companies in the past may have had patience with underperforming or ineffective warehouse facilities, but for most, waiting is no longer an option.

According to Aberdeen research group, when it comes to warehousing, a growing schism exists between the haves and the have-nots. They used three key performance criteria to distinguish best-in-class companies:

  • Complete orders delivered on-time
  • Labor costs per unit handled
  • Actual warehouse operating costs vs. budget year-to-date 

The Accenture Academy course Improving Warehouse Cost Management addresses the application of these criteria for improving warehouse cost management. Do you know where your company could begin to cut warehouse costs? The Accenture Academy course Improving Warehouse Cost Management addresses the application of these criteria for improving warehouse cost management. By developing your knowledge of the tools needed to improve warehouse cost management, you can assist your company in strengthening its bottom line and achieving best in class status.

Heaney, Bob. “Fulfillment Excellence and Dynamic Event Warehousing Come of Age.” The Aberdeen Group Inc., January 2012.

 

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