Productivity Metrics for Night Loaders
“Fast is fine but accuracy is everything.” -Xenophon
Pickers, loaders, night loaders, selectors…They go by many names. These are the folks in your warehouse who pick the bottles, cases and kegs for delivery to the customer.
Loaders serve a critical function in your beer business: to make sure customer orders gets picked accurately and loaded properly onto the trucks.
The loaders often have a 2nd or 3rd shift, and work late into the night to make sure the beer is on the trucks and ready for delivery first thing in the morning. These people work hard, but how do you measure their productivity?
Ideally, your loaders will produce a combination of fast picking speed and high accuracy. What is the right blend of each, and how do you measure it?
In this article we’ll look at Productivity Metrics for Loaders, so that you can monitor and improve efficiency in this area of your distribution business.
- Cases picked per hour: The Need for Speed
- Mispicks + Accuracy
- Putting the Metrics Together: Night Loader Scorecard
For simplicity, I’ll use the term loaders here, but these metrics apply to anyone in your warehouse who selects product and loads it onto trucks for delivery.
Cases Picked per Hour
Picking speed is an important metric used to evaluate loaders. The distribution business operates on a strict timeline, and the trucks must be loaded and ready to go when the delivery team arrives in the morning. If the loaders don’t pick fast enough, the whole operation backs up.
Speed is measured by dividing the number of cases picked by the number of hours worked (Cases per Hour). If a loader works 10 hours and picks 1,000 cases, the average is 100 cases per hour.
Historical results or industry averages can be used as benchmarks to measure against current performance. I’ve seen the results range from a low of 100 to a high of over 200 cases per hour, depending on the type of products being picked.
To track the results for your loaders, set up a spreadsheet and record cases picked and hours worked. Show the numbers by individual and by the full team.
A funny thing happens when you track picking data and share the results: Performance Improves.
In my experience, loaders will increase or decrease their picking speed depending on how much work there is to do. On big nights during the summer, you may see pick rates of 200+ cases per hour. However, on slow nights during the winter, the rates might drop to 80 or 90 cases per hour.
However, when you track the data and post the results you will see improvements in speed regardless of the workload. Human beings will tend to work harder when there is more work to do that has to get done. They will also work harder when there is competition and accountability in play.
Mispicks, Accuracy and Efficiency
As the ancient Greek philosopher Xenophon said, “Fast is fine, but accuracy is everything.” Tracking the cases per hour is important, but perhaps more important is the picking accuracy.
Our retail customers depend on us to make a timely, complete and accurate delivery. In order to achieve this goal, we need to measure picking accuracy.
PIcking accuracy is measured by dividing the number of mispicks by total cases selected. If a loader has 5 mispicked items out of 1,000, the accuracy rate is 99.5%. Pretty good, but maybe not good enough if those 5 cases were for a key customer that will never forgive you.
Measuring the picking accuracy is a start. However, the real improvement comes by reviewing the results with your team and finding ways to improve the number.
Below are four ideas to improve picking accuracy:
- Clearly mark / label of packages
- Don’t make the loaders guess which SKUs are which. This is particularly important with products like wine, that may have confusing brand names.
- Warehouse layout and flow
- Organize the SKUs in a logical pattern that follows the flow of commonly selected products (fast moving SKUs). This will have the additional benefit of improving picking speed.
- Location of products.
- Don’t put similar looking packages near each other on the floor or racking. It’s too easy to pick the wrong SKU.
- Implement a warehouse management system
- This is a big project but can pay big dividends by improving speed and accuracy. More on this in a future article.
Loader Scorecard
The loader scorecard pulls together the key productivity metrics for loaders: picking speed and picking accuracy. Grab it here: BBF Night Loader Scorecard
The data can be measured by day, week, or any period that makes sense. Daily results are helpful to provide quick feedback to workers on their actual results. If the numbers are gathered and reported quickly, the loader and the team know how they performed.
Ideally, your route accounting system will have the ability to capture and report on this information instantly. In this case, loaders can run the reporting themselves and see the results right away.
The keys to a successful scorecard: Capture and report on the data quickly, set a goal for speed and accuracy, and post the numbers where everyone can see them.
Use the scorecard to promote accountability and competition. This combo will help boost picking speed and accuracy so that you get better productivity from your loading team.
Wrap Up + Action Items
Loaders play a critical role in your distribution business. They select the products and get them on the truck for timely and accurate delivery to the retailer. Our customers count on the right deliveries and we count on our loaders to make it happen.
Track and measure picking speed and accuracy for your loaders. Download and use the Loader Scorecard to pull together the Cases per Hour and Accuracy Rate percentage for each team member and your team in total.
Look for trends in the data. People tend to slow down and fill the time on a light night. Watch the Cases per Hour metric to see if this is happening in your business. Publish the numbers so the loaders can see it as well.
Use the numbers as a basis for improvement. What steps can be taken to improve speed? What changes can be made to improve accuracy? The numbers will be your guide if you listen to their wisdom.
