Brisbane-based warehouse operator, Lago Cold Stores, has increased its profitability through the development of benchmarks and KPIs for workforce, client, transaction and product metrics via a custom performance management platform.
The solution pulled together critical operations data from the company’s source systems to measure and optimise commercial performance across its main profit and cost drivers, including labour, stock handling, product types and storage capacity.
Roger Lago, CEO of Lago Cold Stores, said that InfoMeasure had delivered significant tangible benefits in a small amount of time.
“Within six months of engaging 4GM, InfoMeasure has enabled Lago Cold Stores to significantly reduce its operational costs by increasing workforce utilisation by 15 per cent,” said Lago. “We’ve been able to identify which employees have over or under allocated workloads, as well as how efficiently each individual is performing each task.”
InfoMeasure has also detected trends in client orders, identifying changes in things such as the number of units per transaction and the cost impact per unit.
“InfoMeasure lets us understand which types of transactions are our most profitable,” said Lago. “We’re then able to drill into the data to reveal which clients are responsible for our most profitable transactions – and during what time period – enabling us to expose other factors, such as seasonal shifts.”
The company has also been able to measure, rank and optimise handling time – and therefore cost – by product type.
“We now have a clear picture of which product types are making us money and costing us money,” said Lago. “InfoMeasure has given Lago Cold Stores deep insight into its warehouse operations, enabling us to act on the vital performance metrics that underpin profitability and set KPI benchmarks accordingly.”
InfoMeasure combines Yellowfin and SQL Server to create a cloud-based environment on AWS, pulling together data from multiple warehouse and time management systems. It is delivered as a fully managed solution, and comes with a series of pre-packaged industry-specific reports. 4GM also works with clients to develop specific reports and dashboards for their needs.
Stuart Popplewell, founder and managing director, 4GM, said the inspiration to develop InfoMeasure came from a clearly unmet market need in the warehousing industry for a solution that could harness operational and transactional information and present a complete performance management view of the business.
“While most businesses in the warehousing industry collected the necessary data to measure and analyse the main cost and profit drivers impacting productivity and efficiency, there was no dedicated solution to help them collate, visualise and make strategic operational decisions based on that information,” said Popplewell.
“Warehousing businesses lacked a clear way to bring these key cost and profit drivers together in a unified view of the business. This inhibited organisations’ ability to identify the variables within those core business metrics, which impact the performance and cost of warehouse operations and transactions. Without this type of insight, organisations also lacked the ability to develop appropriate performance benchmarks to determine profitability thresholds for vital aspects of their operations.”