Author: Shamika | Read Time: 5 minutes
Why Turnaround Time Matters
Turnaround time equals money. The less turnaround time you have, the more potential profit you can make. In warehouse and logistics operations, poor planning leads to excessive delays, higher costs, and customer dissatisfaction.
Turnaround time is the duration from when a process starts to when it completes. Reducing this is critical for profitability.
Three Coordinated Functions
To improve turnaround time, you must coordinate three key areas:
- Workforce - Optimal staffing and task allocation
- Customers and Orders - Order flow and demand management
- Inventory - Stock levels and availability
Four Improvement Strategies
1. Measure Performance
You cannot improve what you do not measure. Establish and track Key Performance Indicators (KPIs) across your supply chain. Compare against industry standards and competitors using benchmarking analysis to identify gaps.
2. Manage Inventory Flow
Ensure strict delivery timelines and increase visibility and compliance across your supply chain. Implement 3-way matching (PO, GRN, supplier invoice) to catch discrepancies early.
Key Automation Opportunity: Automate GRN creation using barcodes and QR codes to reduce processing from minutes to mere seconds.
3. Simplify Warehouse Operations
Optimize your warehouse layout and accessibility. Streamline picking, sorting, packaging, labeling, and distribution processes to eliminate unnecessary steps and motion.
4. Automate Operations
Deploy ERP or Warehouse Management Systems to systematically improve processes. Use workflow automation to minimize human error and eliminate redundancies. The key is ensuring systems enhance rather than replace existing workflows—they should work with your team, not against them.
The Bottom Line
By measuring performance, managing inventory flow, simplifying operations, and strategically automating workflows, you can significantly reduce turnaround times and improve your bottom line. Start with measurement, then prioritize the highest-impact improvements.