The examination of key performance indicators of warehouse operation systems based on detailed case studies

Abstract

Logistics corporations have very important roles in the current economic development for most countries around the world, but they also have encountered intense competition. Usually, such industries use key performance indicators (KPIs) to pursue their business performance. Several theoretical methods have been used by researchers to study the KPIs for industries, but it is very difficult for the industries to utilize these theoretical methods, and the related research results may not be suitable for the industries. This research first developed a ‘process performance model’ for a warehouse management system, and then extensive case studies were conducted with respect to four different types of logistics corporations.In order to develop the KPIs for logistics corporations, we used case studies to identify the critical functions and processes for a warehouse management system. Based on the developed ‘process performance model’ and the identified critical functions and processes, we proposed eight KPIs that are focused on the quality, accuracy, costs, security, and timeliness of the operations of warehouse management systems. Besides the KPIs, logistics corporations also need to emphasize the implementation of daily management performance indicators (DMPIs) and then integrate the applications of KPIs and DMPIs, which will result in synthesized business performance.