3PL Warehouse - labor/equipment utili...

3PL Warehouse - labor/equipment utilization

Posted in the Logistics Forum

AuMi

Australia

#1 May 16, 2013
Hi,

The company I am working at has currently outsourced its logistics operations to a 3PL. The logistics services are import handling, collection of containers from wharf, warehousing and distribution.
We are currently trying to set up KPI's to measure the performance and efficiency of the 3PL.
The warehouses are owned by the service provider. He has products of 1-2 other customers in his warehouses.
In order to measure the efficiency of the warehouse operations we would like to measure labor/equipment/storage space utilization.

The service provider indicated our contribution of the utilization of its labor and equipment as below:

Inbound labor: available: 2 people: our companies usage: 75%, other customer's usage 25%
...
Forklifts: available: 3: our companies usage: 90%, other customer's usage: 10%
...

And based on the percentages indicated we are charged. We would like to measure if we use indeed the indicated percentage of labor and equipment in a reasonable frequency.

Do you have any advise how to measure the labor and equipment utilization and in what frequency and what is a reasonable target value?

Thank you for your help!

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