The core of the Warehouse Excellence Study is the task orientated reference model DCRM.
Further components complete this model, making it a standardized method:
Doing things right: Data documentation.
Based on the performance measurement system, data is collected to evaluate the efficiency of the distribution center. This data acquisition is accomplished for a few operational key performance indicators on the basis of a standardized questionnaire.
Doing the right things: Technical documentation.
To evaluate the effectiveness of the distribution center, data on the technical and organizational processes will be collected on the basis of standardized questionnaires. These questionnaires make it possible to identify improvement approaches when the distribution center is compared to the selected benchmark partner.
The basis for evaluating distribution centers is the Warehouse Excellence Data Pool.
This pool contains distribution centers that have different dimensions, operating concepts and requirements and come from various countries and sectors.
The Warehouse Assessment Tool (WAT) is a software used to manage and evaluate the collected data.
The WAT is a benchmarking software specifically developed for this purpose, which follows the DCRM standard by applying the task-oriented system on the collected data.
The performance measurement system is dedicated to the performance evaluation of distribution centers.
The objective of this system is to measure efficiency. Efficiency is broken down into incurred costs, achieved performance and quality. To evaluate efficiency costs, performance and quality performance indicators are collected. These can be affected by the distribution center. In addition, structural indicators, which represent the requirements of a distribution center and can hardly or not at all be affected by the distribution center, are also collected. Key performance indicators with special significance are defined.
The Warehouse Excellence Index (WEI) is part of the evaluation system.
It is an index for evaluating performance according to the defined key performance indicators of the performance measurement system. For the pupose of ranking the key performance indicators, a common scale from 0 to 1 is used. The best value (rank 1) is indicated by the value 1 and the worst value is indicated by the value 0. The remaining ranks are linearly distributed to the interval [0;1].
The evaluation of distribution centers on the Top Level, Process Level and Task Level is accomplished by both a comprehensive and specific analysis.
The comprehensive analysis compares the subject of analysis with all existing benchmark partners.
A ranking is given based on the performance measurement system and the Warehouse Excellence Index. The result of this analysis is a classification of the distribution center among all participants. In addition its performance gaps in comparison to the best participants are identified.
The specific analysis compares the subject of analysis with a selected benchmark partner with similar structures.
The choice of this benchmark partner is based on performance and structural indicators and the Warehouse Excellence Index. This specific comparison with the selected partner identifies performance gaps. Furthermore, a comparison of performance indicators and the technical and organizational processes helps pinpointing approaches to close these gaps.