Fulfillment/Logistics Trends
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Warehouse KPIs: Who's in Your Fav-Five?
Metrics reflect the success factors of an organization. So which metrics are you reflecting on when it comes to your warehouse?
As a distribution professional, you have several key performance indicators you always keep in mind. The operations and fulfillment field includes many KPIs — quantifiable measurements that reflect the success factors of an organization. But which warehouse KPIs are in your "Fav Five?" Here are mine, in descending order.
5. Returns processed
By this I mean returns processed as a result of incorrect product being shipped or a mistake by the warehouse. If you do not accurately track this metric, how do you know the effectiveness of your warehouse staff? You don't!
4. Inventory movement
When was the last time you took a long, hard look at where your product is located within your warehouse? Most organizations don't do this regularly — and they should. Did you know that 20 percent of your product is picked for 80 percent of your orders? And 55 percent of your pickers' and receivers' time is spent traveling to and from your locations? That's why this metric is on my list.
3. Employee turnover
From recent studies, 40 percent of employees polled said they were actively looking to change jobs. The average employee will be with your organization for four years or less. A warehouse employee will leave your company for less than 50 cents more an hour — less than $4 more a day. How do you reduce turnover? That's a whole other article, but keep in mind that "employees don't leave bad companies, they leave bad managers."
5. Returns processed
By this I mean returns processed as a result of incorrect product being shipped or a mistake by the warehouse. If you do not accurately track this metric, how do you know the effectiveness of your warehouse staff? You don't!
4. Inventory movement
When was the last time you took a long, hard look at where your product is located within your warehouse? Most organizations don't do this regularly — and they should. Did you know that 20 percent of your product is picked for 80 percent of your orders? And 55 percent of your pickers' and receivers' time is spent traveling to and from your locations? That's why this metric is on my list.
3. Employee turnover
From recent studies, 40 percent of employees polled said they were actively looking to change jobs. The average employee will be with your organization for four years or less. A warehouse employee will leave your company for less than 50 cents more an hour — less than $4 more a day. How do you reduce turnover? That's a whole other article, but keep in mind that "employees don't leave bad companies, they leave bad managers."
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