Warehouse KPIs list

Warehouse KPIs measure the warehouse team’s efficiencies. Warehousing forms a vital part of all manufacturing and logistics concerns. Warehouses are needed to store raw materials, finished items, and for-sale goods in transit to the retailer, whether e-tailer or land-based.

Warehouse Manager Objectives

Warehouse manager objectives are designed to track and measure the Warehouse manager’s job role competencies. All warehouse processes must be continually monitored and optimized, driving down costs and increasing operational efficiencies. The higher these metrics, the more efficiently and successfully the warehouse will run.

  • Improve warehouse receiving – The warehouse receiving KPI measures the process that receives stock or raw materials into the warehouse. Operations begin here, and if this process is inefficient, it will negatively impact all of the future warehouse functions.
  • Improve warehouse putaway – The putaway KPI measures how long it takes for received goods to be packed away at each item’s designated location. Efficient putaway ensures a continuous picking process, substantially reducing lead time.

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  • Improve warehouse storage – The storage KPI measures the warehouse storage efficiencies. It does not matter whether your warehouse’s storage processes are manual or whether you use AS/RS (Automated Storage and Retrieval System). It is crucial to keep track of how effective storage processes are.
  • Improve warehouse distribution – The warehouse distribution KPI measures and tracks the distribution process’s efficiencies or effectiveness in shipping or making goods available to end-users. The growth of the always-on supply chain model has added the function of distribution to the mix. The distribution capabilities must be tracked to ensure consistent product availability.
  • Reduce customer cycle order time – The customer cycle order time KPI measures the time it takes for an order to be fulfilled from the time the customer places the order to when it is shipped. This is a critical measure because it gauges customer satisfaction. Satisfied customers translate into repeat purchases and increased profitability.
  • Equipment – The value of optimally functioning warehouse equipment cannot be overstated. The equipment KPI tracks and measures the adherence to the maintenance schedules and uptime until the next scheduled maintenance.
  • The big picture – The big picture KPI measures and tracks the inventory replenishment rates and the average number of late deliveries by vendors. By monitoring this metric, supply chain managers can successfully manage warehouse operations.
  • Ensure constant cleanliness, tidiness, and safety of the work environment – This KPI tracks and measures the extent to which the warehouse manager ensures health and safety standards with respect to the constant cleanliness, tidiness, and safety of the work environment. The higher this metric, the neater, cleaner, tidier, and safer the warehouse, the more engaged and productive employees will be.
  • Improve the inspection of inventory for damage and faults – Inspecting for damaged and faulty inventory is part of the goods receiving process. This KPI tracks the warehouse team’s ability to check the received goods for damage and faults. Immediately returned faulty and damaged inventory improves the inventory management process: the higher this metric, the more efficient the warehouse team.

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Warehouse Team Objectives

Warehouse team objectives are designed to track and measure the warehouse team’s operational competencies, allowing management to set a benchmark for month-on-month improvements. The higher these metrics, the greater the team’s efficiencies, increasing productivity and driving down costs.

  • Improve pick & pack – The pick & pack process directly impacts lead time. Greater picking and packing translates into shorter lead times. The pick & pack KPI measures the pick & pack’s cycle time.
  • Improve reverse logistics – Reverse logistics is defined as the return of unwanted, damaged, or incorrectly shipped goods to the warehouse. This KPI measures the efficiencies of the reverse logistics processes to ensure that they are as optimized as possible, reducing the time and costs involved, and providing customers with the highest-quality service.

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  • Improve inventory accuracy – The inventory accuracy KPI measures and tracks how accurate the warehouse’s inventory or stock is. This metric is fundamental to successful warehouse management. If your inventory tracking is inaccurate, your costs will skyrocket, and your customer satisfaction levels will drop drastically.
  • Improve the efficiency of receiving – The efficiency of receiving KPI measures receiving efficiencies. Receiving stock is one of the warehouse’s most critical operations. Thus, this metric must be carefully monitored, and it should include aspects like received volume, customer returns, missing and broken stock, and return to vendor stock.
  • Improve the acceptance of inventory deliveries – The acceptance of inventory deliveries KPI is designed to track and measure how efficiently warehouse team members accept inventory deliveries from suppliers. The higher this metric, the more effective the inventory acceptance process, the greater employee productivity, and the lower the cost of receiving inventory into the warehouse.
  • Improve the count and confirmation of delivered inventory – Part of the goods receiving process is to count the goods received and confirm whether the delivered inventory is correct. This KPI tracks and measures the extent to which the warehouse team successfully counts and verifies the delivered inventory.
  • Improve the marking and labeling of stock – The marking and labeling of stock is an essential part of inventory management and control. This KPI tracks and measures the warehouse team’s ability to mark and label inventory items. The higher this KPI, the higher the output and the less time spent looking for misplaced and incorrectly labeled inventory.
  • Load and wrap stock on pallets – This KPI is designed to track and measure how effectively the warehouse team is able to prepare orders for delivery by loading and wrapping stock on pallets. The higher this metric, the higher the warehouse team’s efficiencies, and the greater their output.
  • Improve the building of loads with a forklift and electronic pallet jack – It is essential for each warehouse team member to effectively and efficiently build loads on a pallet with a forklift and electronic pallet jack. This KPI tracks and measures the extent to which the warehouse team can construct pallet loads with a forklift and electronic pallet jack.

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Warehouse Core Objectives

The warehouse core objectives are designed to monitor and track warehouse efficiencies. The goal of these KPIs is to improve continuous operational improvements. As a result, these metrics enable management to take needed corrective measures to increase productivity and asset utilization.

  • Improve the picking and packing costs – The picking and packing costs KPI measures the cost of picking and packing products. Order picking is one of the most expensive and complicated processes; it is the most labor-intensive. This metric must be carefully monitored because it is directly tied to customer satisfaction and is crucial to income generation.
  • Improve inventory turnover – The inventory turnover KPI measures and tracks how quickly your warehouse inventory turns over. High inventory turnover is good for your warehouse. Tracking this KPI provides visibility into your inventory rate because it will help measure buying practices and product demand.

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  • Warehouse shipping – The warehouse shipping KPI measures and tracks the total number of items shipped versus the projected number of items shipped. If the actual shipping metric is lower than the projected number of items shipped, the resultant shipping delays will indicate possible issues within the warehouse.

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These warehouse KPIs are fundamental to ensuring that the warehousing team meets its core efficiencies. Warehousing, or the storage and management of stored inventory, is crucial to the manufacturing and retail concerns. Therefore, measuring these objectives is vital to their respective organizational successes. These KPIs focus on tracking metrics in the warehouse management, team, and core result areas.

It is necessary to measure and track these objectives because they offer insight into the impact that the warehouse and inventory management has on the business. Metrics that track the goods receiving efficiencies, communication between supplier and receiver, packing stock on pallets for delivery, and inventory accuracy are used as benchmarks to measure month-on-month improvements.

High-performing metrics are worth their weight in gold, for it means the warehouse business processes and methods are effective and add value to the company’s mission and goals. Juxtapositionally, low performing KPIs must be revisited to ensure that performance improves over time.

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