Key Performance Indicators (KPI) of Warehouse/DC

Key Performance Indicators is a set of standards that are used to measure and study the performance, productivity and effiency of a warehouse/DC. Listed below are some KPIs that evaluates a warehouse/DC's performance:



On-Time Delivery
This is the amount of deliveries that are on time. A higher on-time delivery shows that warehouse is reliable and does the planning of transportation well.

Order Fill Rate
It is the rate per day of fulfilling orders. A higher rate shows that the warehouse is fast and efficient in completing orders.

Order Accuracy
The number of orders which are completed with no mistakes, things are packed and shipped out correctly. A higher number of accurate orders show how meticulous the warehouse staffs are.

Location Accuracy
Storing of goods/parts in the correct location so that it is easy to find them and pickers can do their job more efficiently. This shows that they have planned and recorded the information locations well. Look at the picture:

how do you find stock with rack after rack all filled with different goods? It's really up to warehouse planning.

Order Cycle Time
Cycle time is the total elapse time to move a unit of work from the beginning to the end of a physical process. It includes process time and delay time during which a unit of work is spent waiting to take the next action.

Change Orders
This refers to orders which are changed even finalization. Changing orders incurs cost and thus it is best to not have any changed orders.

Perfect Order Completion
The number of orders completed with no mistakes or other problems. Of course, a higher number of perfect orders completed reflects better on the warehouse.

Inventory Turnover Ratio
It calculates how many goods go out compared to incoming goods, it shows how fast inventory moves and the higher the better.

Obsolescence
Goods that are discontinued in the market. A lower number benefits the warehouse in terms of lower holding costs.


Inventory Accuracy
It is when physical count matches inventory records. Accurate inventory records show that the warehouse has good storage systems and keeps records meticulously.

Pilferage/Lost/Damaged Inventory
This is the number of damaged, stolen, or lost goods in a lot. It is better if this number is lower as it shows that the warehouse has proper equipment and procedures to keep inventory safe and has good security.

Lots Acceptance Rate
This is the number of goods that pass quality checks. A higher number shows that warehouse or DC is capable of delivering goods that arrive in good condition.

Days on Hand
The number of days inventory is on hand affects holding costs. Therefore, the fewer number of days the inventory is on hand, the better.

Storage Utilization
It is the measure of how well the available data storage space in an enterprise is used and is especially important during peak inventory times. It is measured by the percent of cubic space available used for storage, and the higher the number, the better.

Dock to Stock Time
It is the time taken from unloading to storing the goods as inventory. A shorter time shows how efficient the warehouse staff and equipment are.

Inventory Visibility
It is the ability to view inventory situations at different locations across the supply chain. By having inventory visibility, management can make decisions to optimize their inventory levels. This helps to prevent excess inventory or stock outs which are key to decreasing operational costs and increasing profit margins.

Cost per Order
It is the cost of fulfilling customers’ orders. It is important to keep costs low.

Employees Safety
A warehouse or DC that strives to keep employees safe at the workplace will have separate exits for employees and goods, safety equipments like fire extinguishers, hoses and sprinklers, and also set safety regulations. Safety is calculated by the number of accidents occurring and it is important to keep the warehouse a safe place to work.

Number of Full Truckloads (FTL)
Number of fully utilized trucks (fully packed). More FTL compared to less-than-truckloads (LTL) shows that utilization of trucks are maximized.