Market Survey

BISG-9/30/2004

Benchmarking Warehouse Performance:

A Study of Book Industry Warehouses

Georgia Tech's iDEAs project has demonstrated the feasibility of a web-based tool for

benchmarking warehouse performance, using a system-based assessment method called data

envelopme nt analysis (DEA). The Book Industry Study Group Project represents the next step

in developing this performance assessment technology—a focused study of a specific industry

group. By participating in the BISG benchmarking study, you will not only gain v

aluable

insights into the performance of your own warehouse, you will contribute to a unique industry

level benchmarking of warehouse performance and practices.

There are two phases to the BISG study. First, when you enter your data, you will

immediately receive two types of feedback, a “system efficiency score” and a “gap analysis.”

The system efficiency score is reported in two forms, the input score and the output score. Here,

“input” is the set of resources used in the warehouse, and “output” is the order fulfillment

accomplished. The input score is never greater than 100%, and the closer to 100%, the closer

you are to maximum utilization of your resources for your given level of output. The output

score is never less than 100%, and the closer to 100%, the closer you are to achieve the

maximum output for your given level of resources. For either version of the system efficiency

score, values far from 100% indicate significant opportunities for improvement. The second

immediate feedback, the “gap analysis,” allows you to compare yourself on any specific partial

productivity (single factor productivity) metric, such as lines picked per labor hour, to the best

warehouse (on this metric) in your peer group. The comparison identifies the “causes” for the

gap between you and the best partial productivity, which can be: scale of operation, differences

in input mix, differences in output mix, and technical inefficiency. Only the...