Warehouse and Distribution Metrics: The KPIs That Drive Results

Warehouse Metrics

When operating an industrial facility - whether it's an inbound materials warehouse or a finished goods distribution center, the focus should be on driving business results. During warehouse consulting engagements, the LeanCor team assesses a client's operations relative to performance standards, or benchmarks.

The following key performance indicators (KPIs) are proven to evaluate the most important aspects of a warehousing operation in order to drive results in performance and cost.

Warehouse Areas

KPIs That Drive Results

Operational

  • Safety (OSHA Recordables)
  • Safety (Incidents by Functional Area)
  • Perfect Order
  • Order Fill Rate
  • Total Order Cycle Time in Hours
  • Dock to Stock Cycle Time in Hours
  • Lines Received and Put Away per Hour
  • Order Picking Accuracy (Percent by Order)
  • Lines Picked and Shipped per Hour
  • Cycle Count Accuracy

Financial

  • Distribution Costs as a % of COGS
  • Distribution Costs per Unit Shipped
  • Inventory Turns
  • Lost Sales (Percent of SKUs Stocked Out)

Customer

  • On-Time Customer Shipments
  • On-Time Ready to Ship
  • Internal Order Cycle Time in Hours

Employee

  • Warehouse Productivity
  • Annual Workforce Turnover
  • Cross Trained Percentage
  • Overtime Hours to Total Hours
  • Problem-Solving Capability

Capacity

  • Days-on-Hand Finished Goods Inventory
  • Average Warehouse Capacity Used
  • Peak Warehouse Capacity Used
  • Slotting Efficiency

Posted by LeanCor Consulting

LeanCor Consulting is a division of LeanCor Supply Chain Group. Today’s complex supply chains require vision, strategies, and innovative techniques to create competitive performance. LeanCor Consulting is a trusted partner for advancing end to end supply chain performance through diagnostics, assessments, and full implementation. Global organizations leverage LeanCor Consulting to develop vision and strategy deployment plans for improvement in all supply chain functions. We focus on elements of speed, cost, quality, and delivery, and are able to develop innovative solutions from operational experience as a third party logistics partner.

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