Warehouse managers and operators understand the value of key performance indicators (KPIs) to determine progress toward business goals. KPIs reflect business goals and the overall mission, and allow companies to measure performance over time. KPIs provide important metrics to help warehouse leaders know how they are doing and identify areas where they need improvement. So what is an effective warehouse management KPI for factories? Let's find out about them with Giaiphapdonggoi.net!
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1. Warehouse KPIs corresponding to the receiving process
The receiving operation is the basis of the warehousing function. Warehouse operations begin with this process. Pick-up may include goods being physically received at the warehouse and stored or delivered directly at the customer's location or cross-docked.
The warehouse KPIs corresponding to the receiving process are:
Receiving cost per receiving line: The cost incurred by the warehouse for the receiving process of each receiving line. This includes handling costs.
Pick-up productivity: Determined in terms of labor by measuring the volume of goods received per warehouse worker in an hour.
Receipt Accuracy: The percentage of correct receipts, i.e. the ratio of correctly received orders to orders.
Receive Cycle Time: The time taken to process each receive.
2. KPI stock corresponding to the transfer process
Warehouse KPIs corresponding to the transfer process
Once merchandise is received into the warehouse, the putaway process begins with placing each item/item at a predefined location chosen for the most convenient take-out. We have different types of sell-off processes including, direct sale, guided throw-away, batch and sequence, alternate.
The warehouse KPIs corresponding to the transfer process are:
Putaway cost per line: Drop off cost per line, including labor, handling, and equipment costs.
Productivity put into stock: Volume of inventory per warehouse worker per hour.
Putaway Accuracy: The percentage of items that are correctly put away at the specified location.
Use of Labor and Equipment: Percentage of labor and material handling equipment used in the removal process.
Putaway Cycle Time: The total time taken during the entire process of each puta job.
3. Warehouse KPIs corresponding to the storage process
Warehouse KPIs corresponding to the storage process
The most important process in warehouse operations is to properly store SKUs and ensure that they are traceable and damage controlled. Whether your warehouse relies on manually storing goods or using AS/RS (Automated Storage and Retrieval System), you still need to measure efficiency.
The warehouse KPIs corresponding to the Storage Process are:
Carrying cost of inventory: The historical cost of the total carrying cost of SKUs.
Storage capacity: The volume of inventory stored per square foot.
Space Usage: The percentage of space occupied by inventory of the total available space for storage.
Inventory Turnover: This metric is used to see how often you sell out your entire inventory. This KPI also helps to know slow goods and fast moving goods.
Inventory to Sales Ratio: Measures the level of inventory relative to sales. This helps managers determine how much inventory increases each month compared to sales declines.
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4. Warehouse KPIs corresponding to the picking & packing process
Warehouse KPIs corresponding to the picking & packing process
The picking and packing process directly affects the lead time. More precision in picking means shorter lead times. This is the most important operation in the warehouse as it is associated with poor efficiency. Choosing the right order reduces order return rates and increases customer satisfaction.
The warehouse KPIs corresponding to the picking & packing process are:
Pick-up and packaging costs: Costs incurred for each order, including handling, labeling, re-labelling, and packaging.
Picking yield: The number of lines ordered to be picked per hour.
Select Accuracy: Percentage of orders that are picked and packed without errors.
Use of labor and equipment: Ratio of labor & picking/packing equipment to total labor and equipment used in the process.
Pickup Cycle Time: The time taken to pick each order.
5. Warehouse KPIs corresponding to the distribution process
Corresponding warehouse KPIs
g with distribution process
As the roles and responsibilities of warehouses expand with the growth of an always-on supply chain, the added distribution function puts additional pressure on warehouse management.
The warehouse KPIs corresponding to the distribution process are:
Order Fulfillment Time: The average time it takes for an order to reach a customer after the order has been placed. This is one of the most important KPIs for warehouses and distribution centers.
Perfect Order Rate: The number of orders that the warehouse delivered without errors. It indicates the success rate of the warehouse/distribution center.
Backorder rate: This backorder rate comes from the out-of-stock item. This Pre-Order Rate often indicates failure of forecast sales and helps in sales planning.
All warehouse managers strive for efficiency to keep costs low and sales high. Leverage these key warehouse KPIs - inventory accuracy, efficiency of receiving, picking and packing costs, inventory turnover and customer order cycle times - will help warehouse managers operate an efficient, streamlined and cost-effective warehouse to keep inventory flowing and customers happy.
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