9 October 2021 With the support of technology, you can access operational data in real-time, anticipating problems and making better decisions. Any means of transport, such as a car, airplane, or train, is equipped with a dashboard that guides the driver along the route. It contains various relevant information, such as speed, available fuel, engine temperature, and even malfunction indicators. It is with this information that the driver makes the right decisions to complete the journey, making the most of the resources at their disposal and ensuring the safety of themselves and the passengers. With a logistics operation, the logic is no different: to manage processes well, which are complex and involve high costs, it is important to monitor in real-time how things are going. For this, there is Visual Management. But, what is Visual Management? Visual Management is a management model that allows the visualization of important information and indicators of the operation, and not only that: the data is shared with the entire team, through monitors available at strategic points or via access on smartphones and tablets. In general, this information is presented through graphs, tables, or checklists that allow for quick reading and understanding of the data. Colors are used to indicate the progress of processes or the phase of each of them. The goal is to ensure that everyone can understand the information and make necessary changes based on what is reported in the dashboards (panels). With Visual Management, it’s much easier to notice what is not working, anticipating the occurrence of breakdowns or stoppages. Moreover, it is an effective way to improve communication within the company, as all employees become more informed about everything that happens within the operation. Why does a logistics operation need Visual Management? One of the most repeated phrases by great business leaders is that information is the most valuable asset a company has. Without data on how processes are going, it is impossible to know if the investments made are bearing fruit, if the employees’ work is productive, if the company is using its resources in the right way, and also if there are losses in the process. Only with indicators is it possible to have a real dimension of how things are going and what needs to be improved. In the case of warehouse management, this issue becomes even more relevant, after all, we know that any error in a phase of the process (whether in receiving, storage, picking, or shipping) can damage the entire operation, generating not only internal losses but also impacting the quality of services provided to the customer. A delay in picking, for example, can cause delays in delivery; just as any error in separation can be disastrous. Therefore, for your warehouse logistics to be efficient, avoiding errors, it is essential to closely monitor each process, evaluating employee performance, order fulfillment times, stock levels, among other information that allows measuring if the operation is succeeding in reaching its goals. Furthermore, since logistics is one of the sectors that generate high costs for companies, its management must be extremely effective, which is only possible when you know the business well. What does my company gain with Visual Management? Companies that adopt visual tools that allow monitoring their indicators certainly emerge ahead of the competition. This is because the success rate increases significantly. Another advantage is that employees become more engaged, as they can evaluate their performance. Additionally, by viewing the indicators broadly, managers are able to make more assertive decisions, avoiding failures and losses. In general, the gains are: – Broad view of operations: it is possible to evaluate successes and critical points, trends, and what needs to be fixed. – Better team performance: when employees have access to their performance indicators or KPIs, they tend to strive more to achieve better results. – Facilitation of decision-making: with data available in real-time, detailing performance and productivity, managers are able to have more resources to make the right decisions that ensure real improvements for the operation. – Anticipation of failures: with instant monitoring of indicators, it is possible to anticipate the correction of deviations, such as possible delays, order interruptions in case of stockouts, among others. Therefore, the manager can make changes to the process to avoid errors in the operation. – Better targeting of investments: as soon as the manager starts monitoring the progress of operations, it becomes easier to identify which sectors need investments and improvements. Visual Management management promotes benefits to the operation as a whole, thus being a competitive advantage. With process monitoring at the same time they occur, analyses are no longer performed “in the rearview mirror,” which helps lead the business better. What does Visual Management include? It is important to emphasize that when implementing Visual Management, it is necessary to know well what will be disclosed. This management model is effective only if the information displayed truly helps to understand how processes are executed. Therefore, the manager must define the indicators they want to measure. Moreover, the data must be truthful and assertive, hence the importance of having technology that generates and controls the results. Among the indicators that help evaluate the performance of a distribution center are: – Perfect Order Rate – Order Fulfillment Rate – Picking Line Performance – Average Line Production – Error Rate – Inventory Accuracy For Visual Management to be advantageous for everyone, it is essential to train the team so that employees are able to understand the data made available on monitors and mobile devices and, thus, improve their performance and identify deviations in advance. With active and functioning dashboards, you will certainly have a powerful tool at your disposal to increase your company’s productivity and profitability. Visual Management: Discover What It Is and How to Use It to Improve Your Logistics Management Deagor WMS per ecommerce può aiutarti!