Key performance indicators allow a business to assign measurable values to key functions in the business. This is especially critical for back-office functions, such as warehousing. Common warehouse KPIs include the number of returns processed, inventory turnover, employee turnover, and accuracy in both inventory and payables. Warehouse rental Vancouver solutions are important to your supply chain, and as such, the warehouse function should be measured to ensure you are achieving value.
Since it’s often the very last link in the chain between you and your customers. Therefore, its role in customer satisfaction can’t be overstated. What are your competitors measuring?
On-time delivery, as the name suggests, is the number of deliveries that are on time. A higher on-time delivery shows that your Vancouver warehouse lease is beneficial to your bottom line. In other words, it is reliable and does the planning of transportation well.
Your order fill rate is the rate per day of fulfilling orders. A higher rate shows that the warehouse is fast and efficient in completing orders. Order accuracy is 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. And your location accuracy refers to the storing of goods in the correct location so that it is easy to find them and pickers can do their job more efficiently.
Order cycle time involves 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 obviously refers to orders which are changed. Changing orders incurs cost and thus it is best to not have any changed orders.
Your inventory turnover ratio calculates how many goods go out compared to incoming goods, it shows how fast inventory moves and the higher the better. Inventory accuracy means that the physical count matches inventory records. Accurate inventory records show that your Vancouver warehouse rent is returning dividends. It’s vital that your warehouse has good storage systems and keeps records meticulously.
Damaged or lost inventory is the number of damaged, stolen, or lost goods in a lot. Naturally, it is more desirable if this number is lower as it shows that the warehouse has proper equipment and procedures to keep inventory safe and has good security.
Certainly, these suggested KPI’s aren’t the only ones. Since the warehouse is often the busiest area of a thriving operation, it makes sense to measure it in a meaningful way. Hard metrics make it easier for logistics and Vancouver warehousing management to demonstrate the tremendous value to any organization.