The best set of KPIs depends on your specific role (warehouse manager, part of a logistics network, etc.).

Operational Efficiency KPIs

• Throughput: The volume of goods (units, pallets, containers) moved through the warehouse in a given period. Helps track workload.
• Order Picking Accuracy: Percentage of orders picked and shipped without errors. High accuracy is essential to avoid costly returns or reshipments.
• Putaway Time: Time taken to receive and store incoming goods in their designated locations. Faster putaway times improve efficiency.
• Receiving and Shipping Accuracy: Percentage of shipments received or dispatched without errors compared to documentation.
• Cycle Time: Total time it takes from the moment a customer order is received to when it is shipped out. Shorter cycle times improve responsiveness.
• Dock-to-Stock Time: Time from when goods arrive on the dock to when they are put away in storage locations.

Inventory Management KPIs

• Inventory Accuracy: How closely your inventory records match the actual physical inventory on hand. High accuracy is crucial.
• Inventory Turnover Ratio: How frequently inventory is sold and replenished over a time period. High turnover often indicates healthy demand and efficient management.
• Days Inventory Outstanding (DIO): Average number of days inventory is held before being sold or used. Shorter DIO indicates better cash flow.
• Carrying Costs: The costs of storing inventory, including rent, utilities, insurance, and obsolescence. Managing carrying costs is vital to profitability.
• Backorders: Instances where orders cannot be fulfilled due to lack of inventory. Lost sales and frustrated customers.

Resource Utilization KPIs

• Labor Productivity: Measure output (orders shipped, etc.) per labor hour worked. Helps optimize staffing levels.
• Warehouse Space Utilization: Percentage of your warehouse space that is actively being used for storage. Maximizing utilization improves efficiency.
• Equipment Utilization: Track uptime and usage rates for forklifts, conveyors, and other warehouse equipment.

Safety and Cost KPIs

• Safety Incident Rate: Number of workplace injuries or accidents per 200,000 labor hours worked (industry-standard calculation). Lower is better, safety is paramount.
• Cost per Order: Average cost to process and ship a single order. Helps manage fulfillment costs.
• Damage Rate: Percentage of goods damaged during handling or storage within the warehouse. Impacts costs.

Additional Considerations

• Perfect Order Rate: Measures the percentage of orders fulfilled without errors, damage, or delays. A comprehensive measure of quality.
• On-Time Shipping: Percentage of orders shipped out on or before the promised delivery date. Crucial for customer satisfaction