Tips for benchmarking success
Staff -- Modern Materials Handling, 11/1/2001
As more companies look for ways to improve their materials handling operations, benchmarking has become increasingly popular. However, the benchmarking process itself may not be as straightforward as it initially sounds. With that in mind, a session at the HK Systems (www.hksystems.com) users conference offered some tips on ways to make benchmarking work for you.
Both Bob Kudis of HK and Jason DeLoach of The Gap said an apples-to-apples comparison is essential to your success. Often, they said, what looks similar is not. For instance, productivity numbers may or may not include direct and indirect costs. Knowing which is the case is critical.
Both said it was important to validate the source of benchmarking data and its accuracy. DeLoach in particular said that when comparing your operations to those of other companies be sure that the numbers being shared are not exaggerated. Another point he made was that unit counts need to be verified as consistent to make adequate comparisons.
Kudis went on to say it is important to evaluate people, processes, and technology. "You need to evaluate all three to find out not just the symptoms of your inefficiencies but the actual root cause," he said.
Also during that session, Dr. Dick Ward of the Material Handling Industry of America described an online benchmarking tool for warehouses. It can be accessed at www.mhia.org.





















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