Warehouse KPIs for Efficient Operation

Warehouse KPIs for Efficient Operation

Setting benchmarks for and monitoring KPIs is critical to a successful warehouse operation, not only for customer satisfaction but for costs.

A few KPIs that should be tracked:

  1. Order fulfillment 
  2. Inventory Accuracy 
  3. Order Accuracy 

Beginning with order fulfillment, an acceptable fill rate is 97-98%, with 100% being the best in the industry of course and below 94% signaling improvements needed. Timeliness would be 1-2 days, with the best being within 24 hours. Order picking, depending on the product, should be between 120 and 175 pieces/cases per hour, with 250 being the best. The on-time delivery rate should be high at 98-99%.

Inventory accuracy is a simple formula of dividing your physical inventory counts against the database inventory counts. This should be as close to 100% as possible.

Order accuracy is one of the most important metrics since this can greatly affect customer satisfaction and should fall between 99.5% to 100%.

At KTI, these metrics and more can be tracked easily with our WMS and customized reports. We strive for accuracy on all KPIs that result in efficiency. Inventory management and storage is our business and doing it very well is our goal.

source: 9 KPIs for Efficient Warehouse Operations – Supply Chain 24/7 (supplychain247.com)

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