Warehouse KPIs are essential to running a successful warehouse. They help you track warehouse metrics. These metrics you can then use to optimize your warehouse operations. Tracking these KPIs will give you a better understanding of your warehouse operations. These metrics can be tracked through warehouse management software.
With the rapid growth of e-commerce and multichannel retail, warehouse management is more critical than ever before. Tracking KPIs (key performance indicators) in a warehouse can be challenging and enormously time-consuming. But, proper warehouse KPIs can help you keep your warehouse running efficiently, provide insights into your operations, and help improve profitability.
Here, we’ll tell you the most important warehouse KPIs they should be tracking today.
Receiving KPIs
These KPIs include warehouse productivity, labour efficiency, accuracy, warehouse space utilization, inventory turnover, inventory accuracy, inventory levels, receiving inventory, and inventory storage. They are an important tool in warehouse management. The KPIs help eliminate the guesswork and keep you on track with your warehouse operations.
Put-Away KPIs
Put-Away KPIs are metrics that measure when goods are being put away or put away incorrectly. It is a warehouse process to track and monitor the condition of the warehouse and the goods and materials stored within it. It assists in directing the flow of merchandise and production through a warehouse. Put away typically consist of times when goods are not put away properly, as instructed, which impedes productivity, increases labour and inventory costs, and affects safety.
Storage KPIs
Some common Storage KPIs include inventory accuracy, space utilization, stock rotation, picking accuracy, and order fulfilment time. By tracking and analyzing these metrics, warehouse managers can make data-driven decisions to enhance storage processes, maximize productivity, and improve customer satisfaction. In case a certain season or month requires stocking up on more products, warehouse managers can make changes accordingly. If required, they may even be in a position to set up a dedicated storage unit by using steel garage kits by Sunward Steel (or a similar firm), so that it can provide additional storage space for that particular duration. This can help reduce congestion and make the entire supply chain process more efficient.
Fulfilment KPIs
Fulfilment is one of those metrics you should track if you haven’t already. It is about getting a product into the hands of a customer, and it usually includes several steps. First, a physical inventory has to be checked against the records already in the warehouse, and discrepancies must be fixed. Next, products have to go to the shipping department for packaging.
Pick and pack KPIs
Pick and pack is one of the warehouse fulfilment KPIs you should track today. It is typically defined as the process of pulling orders of inventory from storage, picking the items, packaging them, and shipping them off. In today’s warehouses, pick and pack processes are automated and done using voice picking, barcode scanning, pack lists, and RFID tags. These processes, when properly executed, help warehouses run more efficiently and drive down costs.
Warehouse Safety KPIs
The warehouse environment is complex, and there are many different KPIs to measure warehouse performance. Warehouse KPIs need to be real-time, actionable, and measurable. Warehouse safety is a big concern for business owners and managers, and this concern has led to the creation of some performance indicators when it comes to warehouse safety. From properly training personnel on handling equipment and materials to conducting regular safety inspections, safety should be ingrained in the organizational culture. Additionally, providing workers with the right safety gear, such as safety gloves like the ones available at Unigloves UK Official, or similar safety glove providers can further enhance their protection and contribute to a safer working environment. Safety, when ingrained in the organizational culture, not only improves warehouse performance but also demonstrates a commitment to the well-being of the workforce, creating a healthier and more productive workplace. The health and safety technology as well, such as fire sprinkler systems designed on software from Canutesoft, the latest carbon monoxide detectors, and smart sensor systems needs to be tracked and kept up to date Thus, these safety KPIs cover a wide range of subjects and metrics and identifying which ones your company needs to focus on depends on the nature of your business.
Returns KPIs
Returns KPIs are an important part of warehouse management. They are an important KPI in warehouse management because they tell you what percentage of returned items are not processed in the warehouse. Returns KPI is important because it gives you information about whether the warehouse is losing or making money on sellable returns.
Inventory KPIs
Inventory KPIs are one of the Warehouse KPIs that need tracking. The management of inventory is one of the crucial tasks in any business, as customers are only happy if they can get what they need when they need it. Inventory tracking is the process of keeping track of how the inventory has been used in your business. Inventory control is crucial to any manufacturing company. The warehouse is the lifeblood of the business, and in order to make a profit from sales, you need to keep track of how efficiently you’re moving finished goods through the warehouse. Using a warehouse management software or WMS can help you stay on top of your inventory and streamline all your warehouse operations.
By implementing a warehouse management system, you can track your inventory easily and fast, so you know precisely what you stock and where. Warehouse metrics are at the heart of calculating overall warehouse performance. While proper warehouse metrics strategy is fundamental to efficient and profitable warehouse logistics, picking metrics, in particular, is crucial for the financial performance of a warehouse.