What cannot be measured, cannot be improved

William Thomson—or Lord Kelvin, as he became known—knew that measurement was essential for his studies and experiments to produce consistent results.

The Irish mathematician and physicist's focus on measurement originated the Kelvin temperature scale, where the null point—or absolute zero—is equivalent to -273ºC. Still used today, this thermodynamic scale is mandatory content in science classes.

Kelvin's Reflection vs. Receiving Deliveries

The practical reflection, "What cannot be measured, cannot be improved," originated in physics but became essential for countless other fields. The measurements originally used in the exact sciences proved extremely relevant to the areas of information and knowledge, and today play a fundamental role in improving processes related to business management and the broad set of actions and strategies applied to business.

But what does Kelvin's reflection on measurements have to do with your company's receiving process?

Basically, everything! The answers you, as the business owner or the person responsible for logistics/commercial areas, give to the five questions below may confirm something you already know. Or, they may present a new scenario that has perhaps never been so clear in your mind.

To answer these questions, you need to have the measurements—the numbers! For example: if your suppliers usually face a two-hour queue in your company's yard and take another hour and a half to effectively start and finish an unloading process, you have enough information and knowledge to propose improvements and reduce this idle time by at least 50%—or any other percentage you deem appropriate.

On the other hand, if you only know that your suppliers wait in line until they unload their trucks, how can you reduce this idleness by 50%? It's impossible to reduce 50% of something you don't know!

So... let's get to the questions!

5 Questions to Measure Your Receiving Process

1. How is your company currently handling the receiving of deliveries and, especially, what are the strengths (advantages, differentials, opportunities) and weaknesses (limitations, inefficiencies, fragilities, delays, bottlenecks) of the area?
2. What is the status of your company's delivery receiving right now? What, who, and where is a particular product being delivered? How many appointments are confirmed for today? What are the predicted average loading and unloading times for each of your suppliers? How many and which invoices have been cross-referenced with orders and effectively confirmed? What is the percentage of occupancy for each loading/unloading dock?
3. What is the operational cost of the delivery receiving area? How many and which resources are involved in serving each truck that arrives at your company every day? How much is your company losing—and failing to profit from!—with errors, rework, delays, losses, idleness, accidents, fines, and supplier/customer dissatisfaction?
4. Can you access information quickly and, whenever necessary, make rapid decisions to resolve unforeseen events and specific situations that naturally occur in the area's daily routine?
5. Overall, is your company's receiving process at an adequate level or not? Considering the volume of deliveries, supplier punctuality, unloading times, among other factors, do you believe it is necessary—or even urgent!—to invest in improvements?

Whether confirming what you already knew or revealing something new, measurements will always play an important role for any company that wants to improve its processes. After all, it is the **numbers**—and the knowledge behind values, percentages, quantities, and times—that make it possible to identify problems, provide information in the search for solutions, and also raise growth opportunities.

Obviously, managing delivery receiving was not part of physicist Kelvin's scope of work, but the phrase "What cannot be measured, cannot be improved" serves as an invitation to reflect and an incentive for you to analyze your current practices. [Author: C.I.]

If you are interested in finding out what a delivery receiving management system can do for your company, click here.