 Materials Management KPIs List

• Materials Handling Damage – We strive to reduce materials handling damage by minimizing the percentage of materials spoiled during inventory handling and storage processes.
• Warehouse Capacity Use Rate – We strive to increase warehouse capacity use rate by optimizing the percentage of storage volume that is actively utilized in a storage center.
• Equipment/Forklift Capacity Use Rate – We strive to increase equipment/forklift capacity use rate by ensuring machinery is utilized more efficiently during the scheduled time for use.
• Honeycomb Percentage – We strive to increase honeycomb percentage by improving cube utilization in storage areas, maximizing the use of available warehouse space.
• Inventory Days of Supply – We strive to reduce inventory days of supply by optimizing inventory levels to meet demand without overstocking.
• Inventory Count Accuracy – We strive to increase inventory count accuracy by improving the correctness of physical inventory counts in comparison to declared inventory records.
• Average Component/Material Shelf Life – We strive to reduce the average component/material shelf life by minimizing the amount of time parts or materials are kept in storage before being used in production.
• Component Picking Cycle Time – We strive to reduce component picking cycle time by speeding up the time it takes to collect materials and parts needed for manufacturing or production orders.

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• Percentage of Supplier Orders Received with Correct Documentation – We strive to increase the percentage of supplier orders received with correct documentation by ensuring more accurate and complete documentation from suppliers.
• Percentage of Supplier Orders Received Damage Free – We strive to increase the percentage of supplier orders received damage-free by minimizing defects in the products received from suppliers.
• Dock-to-Stock Cycle Time – We strive to reduce dock-to-stock cycle time by speeding up the process from the arrival of merchandise to its storage and entry into the inventory control system.
• Lines Received and Put Away per Hour – We strive to increase lines received and put away per hour by optimizing efficiency in the receiving department.
• On-Time Receipts from Supplier – We strive to increase on-time receipts from suppliers by improving the percentage of shipments received on the requested date.
• Materials Order Cycle Time – We strive to reduce materials order cycle time by shortening the time between order submission and arrival at the designated destination.
• Component Tracking – We strive to ensure component tracking by consistently utilizing procedures like manual stocking, labeling, or color coding to monitor material parts.
• Data Storage – We strive to optimize data storage by maintaining material data in the monitoring system for the required duration.
• Supplier Orders Productivity – We strive to increase supplier orders productivity by improving the number of purchase agreements handled per hour by staff.
• Percentage of Component Parts Tracked – We strive to increase the percentage of component parts tracked by enhancing monitoring of material parts in the system.

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• Order Picking Accuracy – We strive to increase order picking accuracy by ensuring a higher percentage of orders are accurately prepared without errors.
• Average Order Cycle Time – We strive to reduce average order cycle time by minimizing the time between order submission and receipt by the client.
• Acceptance Rate of In-Process Products – We strive to increase the acceptance rate of in-process products by improving the percentage of merchandise authorized by Quality Management on the first inspection.
• Customer Requirement Review – We strive to ensure customer requirement review by inspecting merchandise against pre-set client specifications during the manufacturing process.
• First Pass Yield (FPY) – We strive to increase first pass yield (FPY) by reducing the need for alterations or repairs during the production process, ensuring more items pass through without defects.
• Shipped Complete per Customer Order – We strive to increase the shipped complete per customer order rate by ensuring that more orders are transported with all specified lines and units as requested by clients.
• Reinspection – We strive to ensure reinspection of non-compliant products by trying to repair and review them during the last phase of manufacturing.
• Percentage of Orders Requiring Rework – We strive to reduce the percentage of orders requiring rework by minimizing errors during the preparation and packaging processes.
• Internal Order Cycle Time – We strive to reduce internal order cycle time by shortening the time between client order submission and the supplier’s shipping of those orders.
• Acceptance Rate of Finished Goods – We strive to increase the acceptance rate of finished goods by improving the percentage of finished products certified by Quality Management on the initial inspection.
• On-Time Delivery Rate – We strive to increase the on-time delivery rate by ensuring that a higher percentage of orders arrive at their specified destination on schedule.

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