Operational Performance and Health Check Analysis

What a good one includes

• An inventory turns analysis that highlights slow-moving stock and identifies where your working capital is unnecessarily tied up.
• A detailed review of your order fill rates and picking accuracy to pinpoint the root causes of customer shipping delays.
• A supplier performance scorecard that tracks lead times, reliability, and the financial impact of vendor delays.
• A warehouse capacity assessment evaluating your floor plan efficiency, rack utilization, and product placement logic.
• A cost-to-serve analysis calculating the true profitability of individual customer segments and product lines after handling costs.
• A prioritized roadmap outlining immediate quick wins and long-term capital investments needed to optimize your operations.

Common mistakes to avoid

• Looking at average inventory values instead of segmenting products into high, medium, and low-priority categories like an ABC analysis.
• Failing to account for the indirect labor and overhead costs when calculating your true cost-to-serve for complex orders.
• Relying on outdated data or self-reported estimates from staff rather than exporting actual transaction logs from your warehouse management system.
• Stopping at the diagnostic stage without assigning clear timelines and team owners to the identified bottlenecks.

Frequently asked questions