The 5 Most Important KPIs For Warehouses

1. Accuracy of goods

Of course, inventory is an important part of a warehouse, and inventory accuracy is an important warehouse KPI, because if your inventory tracking isn't accurate, your costs will go up and your customer satisfaction will decrease. If you rely on Excel or manual processes, your inventory accuracy will be very low, and there is a chance of re-ordering or manufacturing existing parts due to miscalculations. The cost of overcharging or angering customers when you don't have an item you announced is in stock can hurt not only your bottom line, but your reputation as well.

One solution to inaccurate inventory levels is to choose a system that uses barcodes. Some warehouses find that barcode systems can be integrated into their existing computerized maintenance management systems (CMMS). These systems improve inventory control by providing a framework for managing inventory, deliveries, and other inventory items. Additionally, some CMSs include functionality to track shipments, manage orders, and monitor inventory levels and inventory levels.

2. Maintain efficiency

One of the most important warehouse operations is receiving. Therefore, the KPI of the warehouse should be taken into account, which includes the efficiency and quantity received, customer returns, missing and incomplete inventory and the supplier's return to inventory. Automation expert Carl Friesenbichler reminds warehouse managers to crunch the numbers by source and time to determine "intensities, supplier quality issues and rates of return in distribution areas." A well-lit warehouse will make workers more productive and bring the product into the country.

The efficiency of your receiving area has a huge impact on warehouse performance. To avoid chain reaction of inefficiency in your warehouse, you need to know your inventory speed and identify bottlenecks. Important specific revenue KPIs should include revenue cost per expense line, revenue rate per business hour, inbound gateway utilization percentage, revenue accuracy percentage, and revenue execution time.

It's easy for warehouse managers to track inbound and outbound KPIs. However, poorly constructed and poorly made containers are harmful for storage. If you find defects, you will feel the consequences of your entire operation.

3. Manufacturing and packaging costs

Most warehouse managers say that picking is one of the most expensive and difficult processes because it requires a lot of labor. Often more complex than other operations, assembly and packaging processes are critical to a company's bottom line because they are directly linked to customer satisfaction. KPIs for picking and packing should include cost of goods received, orders received per hour, picking costs, consumption and cycle time per order. You can measure the accuracy and speed of picking and packing, and one specific metric to consider is the percentage of perfect pick lines.

4. Calculation of goods

A high stock exchange is good for your stocks. Inventory reduction turns into a KPI as it helps measure purchasing habits and product demand. Your inventory management system can provide a solution to help you gain insight into your inventory turnover and make forecasts to keep your inventory moving. Remember, inventory turnover measures how much time your inventory has gone through in a year. You should compare this figure to the industry average to see how your camp is performing.

5. Customer cycle order planning

Don't get so lost in your organization's KPIs that you forget about customer-centric metrics. While customer feedback is certainly valuable, you should use metrics like customer order cycle time to predict overall customer satisfaction. It's understandable that customers don't want to wait long for their orders, and the warehouse is at the forefront of alleviating customer frustration and stress. Your shipping windows should be consistent with the rest of your industry. Consider reverse logistics and make sure your return process and timelines match your order.

All warehouse managers strive to be efficient in order to keep costs low and income high. Using these important warehouse KPIs (inventory accuracy, picking, packing and packing, inventory turnover, and customer order lead time) helps warehouse managers operate a profitable, streamlined, and efficient warehouse that moves inventory and customers smoothly. Happy

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