Warehouse management Essay Example | Topics and Well Written Essays - 2000 words

W behouse management - Essay ExampleIt has become outdated when a union could take an order and quote to deliver after a month or two that today delivery is either the same day or in some cases the next day. This happens to conceal your existing customer, which is far cheaper than finding a new one hence satisfying a occurrent customer becomes paramount. Reichheld and Teal (2001) in a well-established research found , 5 percent customer retentivity can increase many companies profits by 25 to 95 percent, and cost of 6 to 7 times more for gaining a new customer than keeping an existing one. To ensure organizations maintain superior performance in their operations that contribute to customer retention and satisfaction the idea of a warehouse has helped them to increase their accuracy, timeliness, customer is provided with the right product in the right condition and at the right time. This root screames the measures that enhance the performance of a warehouse.Performance and pr oductivity of the warehouse is measured to ensure customer expectations and incessant improvement of the warehouse and avoid incurring additional costs and loss of customers. The suitability of any of the measures is governed by customer expectation, although they need to align to the companys resources. Rushton, Croucher and Baker (2010), asserted that the method used should address both the cost of service provision and the level of customer service. Here, the areas measured within the warehouse are cost, flexibility, reliability, and asset utilization. There are a number of measures used nowadays in warehouses, which are found on productivity, cost performance measures, and those related space, labor, and equipment utilization.Most warehouse managers experience a big line of work of inadequate space with many warehouses operating with about 20 percent of their available space at any time. Warehouses with high space utilizations result in high cost on employees for their