Measurement of Goals which Matter

Early in my career, I transitioned from serving as an Infantry officer in the Army, leading 150 soldiers in combat to leading a team of packers on second shift at Target’s largest distribution center, packing underwear and socks.  I was indeed fortunate to cut my teeth in such a well-equipped, well-led facility, immersed in a culture focused on taking care of the people you had the responsibility to lead.  A series of roles leading teams, then departments, and then a liaison job facilitating the timely receipt, processing, and delivery of weekly ad product – prepared me for the job of leading as a General Manager. 

My time at Target taught me that the distinguishing characteristics of high performing warehouse operations were, in order:

-          Safety

-          Cleanliness

-          Efficiency

-          Accuracy

-          Speed

The best buildings I have led, consulted, or visited since consistently make these attributes visible priorities, and quantifiable objectives with the intention of improving processes and incentivizing behavior that makes their facilities safer, cleaner, more productive, and more precise, while providing timely and responsive support to their customers – whether that be other DCs, serviced stores, or direct fulfillment to customers. 

Safety 

Safety stands alone atop the list because - unlike the other attributes – we are never going to sub-optimize safety for the perceived good of the overall system. 

We’re never going to have a “let’s take risk” or “everybody run” day; whereas we may periodically sub-optimize one of the other four attributes in order to weight the effort directed toward one of the others … for example; adding labor hours which may sub-optimize productivity for the broader purpose of meeting a required throughput volume in support of an upcoming sales event. 

Or, we may not devote that last 15 minutes of a shift to cleaning, in order to meet a throughput goal for the day, and consciously decide to restore order to standard first thing the next shift.

Clean

Clean means not just clean, but a state of order.  Tools for the job - forklifts, RF scanners, brooms, etc. all have assigned places and those things are either in use, or in their assigned spot.  People don’t find their time wasted in a search for a tool they need to accomplish their work.

5S doesn’t just exist as a slogan, it exists as a system to help drive the priorities of safety, cleanliness and efficiency. 

When things are out of place, it creates an implied task for whoever makes the observation first to restore things to their rightful place. 

I was on an interview once, touring a distribution center with the Vice President.  The organization had 5S boards on aisle end caps; with silhouettes of a broom, dustpan, and garbage can outlined on 5S boards.  It was impressive.  Then we rounded a corner and a push broom was not hanging in its silhouette – so I started looking for it, thinking I’d see it in the immediate area and replace it.  I didn’t see the broom anywhere and my body language started to indicate a distraction away from what I was learning on the tour to finding that broom.   

The Vice President noticed my divided attention and briskly asked “What are you looking for?!”

I answered, “the broom that wasn’t hanging up on the 5S board.”

To my surprise, he angrily responded … “Do you know HOW LONG THAT’S BEEN MISSING?”

He had become part of the problem.  I completed the interview politely, but wasn’t crushed when I wasn’t selected. 

Our people are watching.  Best we don’t walk by mistakes, and inadvertently give them our endorsement.  

Efficiency – a two-prong meaning

I’ve always used “Efficient” rather than “Productive” as a priority because efficiency carries two implied meanings - the operation needs to be both productive AND adaptable. 

We may begin the day with a plan; but it soon needs adjustment due to unforeseen variances … in volumes, product mixes, staffing, or to maintain a steady flow of goods through the system.

Our production planning needs to be ‘stock-market’ efficient, and fluidly make adjustments. 

The ability to anticipate, or see a need for an adjustment in my mind, has always been the distinguishing attribute of the very best operators and teams.   

Forecasts may be reasonably accurate in aggregate, but contain large daily variances.

The teams who detect AND act on variance quickly are normally best in class operations.

AI may add the greatest value to DC operations in this regard; providing much more accurate forecasts and detecting variances to plan during the course of the day – helping operators call audibles which save money, and improve service.  Similarly, AI Agents are now helping to mitigate problems which affect fleet performance … traffic, late orders, long service times, driver availability, and mechanical issues which impact precise schedules.

And then of course, “Efficiency” means solid productivity – getting the job done with less, over time and experience … guided by continuous improvement initiatives.

Accuracy and Speed

Accuracy which isn’t compromised with increases in productivity … and cycle times and service levels being maintained and improved even as volume increases.

Summary

Distribution and logistics operations face a myriad of challenges in today's fast-paced and ever-changing work environment, all of which require careful strategic planning, production control, predictable execution, and rapid response to change and variation.

Successful companies in this industry are those that embrace this challenge, and are well-versed in measurement - which enables detection of good things happening and improvement – for the purpose of positively recognizing the efforts of your team as immediately as possible.

The single greatest predictor of something ‘good’ happening again is if it is detected and reinforced when it first occurs. 

Work Done Better has a track record of helping 40 consecutive distribution and fulfillment centers do just that, boasting a range of productivity improvement of +11% to +44%. 

I’d love to help your team enjoy that same level of success. 

Please contact me to learn more, and discuss how and where to get started.

Question

How do these priorities compare with the ones you use to guide work in your facilities and networks?

Do you have a facility in your network you wish was 10% or more productive?