Objectives are a tool, are a proxy for some outcome that we want to achieve. What kind of outcomes would anyone want to achieve in a warehouse? What kind of outcomes would anyone want to achieve from inventory management?
Does your organization find important that your warehouse and inventory management:
Do not lose material;
Has no stock breaks;
Has no material wasted;
Uses older batches first;
Has no leakage or spillage occurrence;
Detects non-conformities and segregates them.
Each topic can be translated into an objective. For example:
Do not lose material – Not more than 1% difference between real and virtual stock during monthly inventory audits (if actual performance is 5%, you can add that the 1% level is to be attained in the next 90 days and the responsible is person A)
Has no stock breaks – Not more than 1 stock break situation per month in critical items (if actual performance is on average 3.5, you can add that the 1 break per month will be attained in the next 60 days and the responsible is person B)
The following material will provide you more information about SMART objectives: