{"id":259,"date":"2020-06-26T08:00:00","date_gmt":"2020-06-26T13:00:00","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/distribution-metrics\/"},"modified":"2025-11-17T23:05:32","modified_gmt":"2025-11-17T23:05:32","slug":"distribution-metrics","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/distribution-metrics\/","title":{"rendered":"Distribution Metrics for More Efficient Packing, Shipping, and Delivery"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#h-what-are-distribution-metrics\">What are distribution metrics?<\/a><\/p>\n\n\n\n<p><a href=\"#h-distribution-metrics-vs-key-performance-indicators-kpis\">Distribution metrics vs. key performance indicators (KPIs)<\/a><\/p>\n\n\n\n<p><a href=\"#h-14-top-distribution-metrics-to-start-tracking\">14 top distribution metrics to start tracking<\/a><\/p>\n\n\n\n<p><a href=\"#h-how-to-track-your-distribution-metrics\">How to track your distribution metrics<\/a><\/p>\n\n\n\n<p><a href=\"#h-track-important-metrics-while-delivering-fast-affordable-shipping\">Track important metrics while delivering fast, affordable shipping<\/a><\/p>\n\n\n\n<p><a href=\"#h-conclusion\">Conclusion<\/a><\/p>\n\n\n\n<p><a href=\"#\">Have your own warehouse?<\/a><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-2025-single-key-takeaways-container single-key-takeaways-container\"><div class=\"single-key-takeaways-container-title-container\"><span class=\"single-key-takeaways-container-title-icon\"><\/span><h2 class=\"single-key-takeaways-container-title\">Key Takeaways<\/h2><span class=\"single-key-takeaways-container-title-bottom-line\"><\/span><\/div><div class=\"single-key-takeaways-container-children\">\n<div class=\"wp-block-shipbob-blocks-2025-single-key-takeaways-item single-key-takeaways-item\"><div class=\"single-key-takeaways-item-list-count\"><p class=\"single-key-takeaways-item-subtitle\">1<\/p><\/div><div class=\"single-key-takeaways-item-list-content\"><p class=\"single-key-takeaways-item-title\">Distribution metrics are quantitative measures used to track performance in inventory management, warehousing, and shipping processes, helping businesses optimise their supply chain operations.<\/p><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-2025-single-key-takeaways-item single-key-takeaways-item\"><div class=\"single-key-takeaways-item-list-count\"><p class=\"single-key-takeaways-item-subtitle\">2<\/p><\/div><div class=\"single-key-takeaways-item-list-content\"><p class=\"single-key-takeaways-item-title\">Key distribution metrics include inventory turnover rate, order accuracy rate, time to ship, and total units in storage, which are crucial for managing costs and meeting customer expectations.<\/p><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-2025-single-key-takeaways-item single-key-takeaways-item\"><div class=\"single-key-takeaways-item-list-count\"><p class=\"single-key-takeaways-item-subtitle\">3<\/p><\/div><div class=\"single-key-takeaways-item-list-content\"><p class=\"single-key-takeaways-item-title\">Metrics differ from KPIs as they track ongoing processes, while KPIs measure the achievement of specific outcomes and influence service-level agreements with vendors.<\/p><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-2025-single-key-takeaways-item single-key-takeaways-item\"><div class=\"single-key-takeaways-item-list-count\"><p class=\"single-key-takeaways-item-subtitle\">4<\/p><\/div><div class=\"single-key-takeaways-item-list-content\"><p class=\"single-key-takeaways-item-title\">ShipBob offers a comprehensive analytics tool that provides real-time tracking of distribution metrics, enabling businesses to make data-driven decisions and improve operational efficiency.<\/p><\/div><\/div>\n<\/div><\/div>\n\n\n\n<p>Companies across all industries use metrics to track performance over time so they can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Identify trends and opportunities for improvement<\/li>\n\n\n\n<li>Compare their volume and efficiencies to historical numbers<\/li>\n\n\n\n<li>Benchmark themselves against competitors<\/li>\n<\/ul>\n\n\n\n<p>Every function of a business needs to track performance metrics including customer service, marketing, finance, HR, IT, <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-management\/\">supply chain management<\/a>, and more.<\/p>\n\n\n\n<p>For brands that sell physical goods, distribution logistics need to run efficiently.<\/p>\n\n\n\n<p>Knowing the right performance metrics to track along with best practices for measuring success helps ensure you understand inbound and outbound logistics performance and that you can make the right <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-optimization\/\">supply chain optimizations<\/a>.<\/p>\n\n\n\n<p>In this article, we\u2019ll cover common distribution metrics as they relate to <a href=\"https:\/\/www.shipbob.com\/fulfillment-logistics\/\">fulfilment logistics<\/a>, product sales, and <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-movement\/\">inventory movement<\/a> to help you maximise efficiencies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-distribution-metrics\">What are distribution metrics?<\/h2>\n\n\n\n<p>Distribution metrics are the quantitative measures tracked throughout the inventory receiving, <a href=\"https:\/\/www.shipbob.com\/blog\/warehousing\/\">warehousing<\/a>, picking, packing, <a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/\">ecommerce shipping<\/a>, and delivering processes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-distribution-metrics-vs-key-performance-indicators-kpis\">Distribution metrics vs. key performance indicators (KPIs)<\/h2>\n\n\n\n<p>Though often used interchangeably, metrics and <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-kpis\/\">KPIs<\/a> have both overlap and key differences. <a href=\"https:\/\/www.shipbob.com\/blog\/retail-kpis\/\">Retail KPIs<\/a>, for example, are meant to measure if a desired value or outcome is being achieved or not, while metrics simply track what is happening throughout the supply chain.<\/p>\n\n\n\n<p>KPIs also influence service-level agreements (SLAs) that you have with vendors. For example, if you work with a <a href=\"https:\/\/www.shipbob.com\/3pl\/\">third-party logistics<\/a> (3PL) company, there are key metrics that are tracked so the 3PL is held accountable against their agreed upon SLAs. These SLAs can range from shipping orders out on time, to the speed at which they receive and stow your inventory.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-14-top-distribution-metrics-to-start-tracking\">14 top distribution metrics to start tracking<\/h2>\n\n\n\n<p>There are dozens of metrics and KPIs when it comes to tracking ecommerce logistics performance. The most important metrics you focus on impact everything from your profitability to your ability to meet customer expectations.<\/p>\n\n\n\n<p>Here are 14 distribution metrics you should be tracking.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-inventory-turnover-rate\">1. Inventory turnover rate<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-turnover-ratio\/\">Inventory turnover rate<\/a> measures how many times inventory is sold and then replaced in a specific time period. Understanding your average inventory turnover by <a href=\"https:\/\/www.shipbob.com\/blog\/how-to-find-sku-number\/\">SKU<\/a> is a critical measure of business performance, cost management, and sales, and can be benchmarked against other companies in a given industry.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Inventory turnover = (Cost of goods sold \/ Average inventory)<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15040\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool-700x321.png?w=1280px\" alt=\"inventory summary and turnover from ShipBob's analytics tool\" width=\"800\" height=\"367\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool-700x321.png?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool-700x321.png?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool-700x321.png?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool-700x321.png?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/inventory-summary-and-turnover-from-ShipBobs-analytics-tool-700x321.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cShipBob\u2019s analytics tool is really cool. It helps us a lot with planning inventory reorders, seeing when SKUs are going to run out, and we can even set up email notifications so that we\u2019re alerted when an SKU has less than a certain quantity left. There is a lot of value in their technology.\u201d<\/em><\/p>\n\n\n\n<p>Oded Harth, CEO &amp; Co-Founder of <a href=\"https:\/\/www.shipbob.com\/blog\/mdacne\/\">MDacne<\/a><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-order-accuracy-rate\">2. Order accuracy rate<\/h3>\n\n\n\n<p>The percentage of orders that are delivered correctly. ShipBob\u2019s <a href=\"https:\/\/www.shipbob.com\/blog\/order-accuracy\/\">order accuracy<\/a> rate is usually around 99.98%.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Order accuracy rate = (Total orders delivered correctly \/ Total orders) x 100<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-time-to-ship\">3. Time to ship<\/h3>\n\n\n\n<p>This is the amount of time it takes to ship an order once it\u2019s placed. For example, ShipBob offers <a href=\"https:\/\/www.shipbob.com\/blog\/same-day-shipping-delivery\/\">same-day shipping<\/a> for B2C orders imported into the ShipBob dashboard by the time of the outbound fulfilment SLA cutoff (ranging from noon to 6pm local time of the fulfilment centre fulfilling it, depending on the location).<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Time to ship = <a href=\"https:\/\/www.shipbob.com\/blog\/ship-date\/\">Ship date<\/a> \u2013 Date order was placed<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>Note: For most brands, this distribution metric will be calculated in business days. This metric is also different from the time it takes an order to ship (from when it leaves a fulfilment centre) to when it is delivered to the end customer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-total-units-in-storage\">4. Total units in storage<\/h3>\n\n\n\n<p>This number involves knowing real-time inventory counts across all of your products.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Total units in storage = The sum of current stock levels for all SKUs<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>This distribution metric will change all the time as you sell through inventory, reorder more, add new products, and process <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-returns\/\">ecommerce returns<\/a>. However, understanding the quantity you have (either too little or too much) will affect everything from high warehousing costs and having too much money tied up in inventory, to experiencing <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/stockout-costs\/\">stockouts<\/a>. The more SKUs you have, the more you\u2019ll have to stay on top of.<\/p>\n\n\n\n<p>Note: You should also calculate <a href=\"https:\/\/www.shipbob.com\/blog\/reorder-point-formula\/\">reorder points<\/a> and <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/safety-stock\/\">safety stock<\/a>, and understand when to adjust your <a href=\"https:\/\/www.shipbob.com\/blog\/reorder-quantity-formula\/\">reorder quantity<\/a> over time. This way, you can keep stock levels balanced, and never run out of inventory or invest in too much capital in inventory upfront.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-total-number-of-orders\">5. Total number of orders<\/h3>\n\n\n\n<p>This is your total order volume for a given timeframe. A month or 30 days is a typical timeframe, but this can be calculated daily, quarterly, annually, etc.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Total number of orders = The sum of all orders placed for a specific timeframe<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>Note: <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-dtc-brand-growth-seasonal-sales-order-volume\/\">Seasonality<\/a> will affect this volume and you should track other distribution metrics like <a href=\"https:\/\/www.shipbob.com\/blog\/average-order-value\/\">average order value<\/a> (AOV) and average units per order in conjunction. You should also track this distribution metric separately for each channel so you can view growth per channel.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-6-percentage-of-on-time-shipments\">6. Percentage of on-time shipments<\/h3>\n\n\n\n<p>This is the total percentage of shipments that are delivered without delay or within their expected timeframe.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>On-time shipments ratio = (Number of shipments delivered on-time \/ Total shipments) x 100<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15680\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/ShipBob-shipped-on-time-700x173.png?w=1280px\" alt=\"ShipBob shipped on time\" width=\"602\" height=\"149\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/ShipBob-shipped-on-time-700x173.png?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/ShipBob-shipped-on-time-700x173.png?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/ShipBob-shipped-on-time-700x173.png?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/ShipBob-shipped-on-time-700x173.png?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/ShipBob-shipped-on-time-700x173.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-7-average-warehouse-capacity-used\">7. Average warehouse capacity used<\/h3>\n\n\n\n<p>This is the total bin, shelf, and pallet locations you have in your <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-warehousing\/\">ecommerce warehouse<\/a> that are being used so you can identify capacity. This distribution metric is useful in determining if you need to downsize or plan to expand warehouses. It goes hand in hand with <a href=\"https:\/\/www.shipbob.com\/blog\/economic-order-quantity\/\">economic order quantity<\/a>, where you aim to optimise the space used.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Average warehouse capacity used = The number of inventory storage spots with an on-hand quantity greater than zero \/ Total number of inventory storage spots<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>Note: If you <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/outsourced-fulfillment\/\">outsource fulfilment<\/a>, this won\u2019t apply to you. This metric is often used when warehouses consider <a href=\"https:\/\/www.shipbob.com\/blog\/the-downside-of-on-demand-warehousing\/\">on-demand warehousing<\/a> or are deciding what to do when their lease is coming to an end.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-8-percentage-of-sales-lost-to-out-of-stock-products\">8. Percentage of sales lost to out-of-stock products<\/h3>\n\n\n\n<p>This is the total dollar value of sales lost or refunded due out-of-stock supply issues divided by the total dollar value of customer sales over the same period of time, expressed as a percentage. If you have poor inventory management, you may over-sell products when you don\u2019t actually have them in stock. After a customer places an order with out-of-stock items, you\u2019ll have to let them know, cancel and refund their order, and lose that sale.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Sales lost = (Value of sales lost \/ Total value of sales) x 100<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-9-order-picking-accuracy\">9. Order picking accuracy<\/h3>\n\n\n\n<p>Similar to order accuracy rate which takes packing and not just <a href=\"https:\/\/www.shipbob.com\/warehouse-operations\/warehouse-order-picking\/\">warehouse picking<\/a> into consideration, this is the percentage of orders picked without error.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Order picking accuracy rate = (Total orders picked without error \/ Total orders) x 100<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-10-undamaged-delivery-rate\">10. Undamaged delivery rate<\/h3>\n\n\n\n<p>This is the percentage of orders delivered without any <a href=\"https:\/\/www.shipbob.com\/blog\/prevent-shipping-damages\/\">shipping damages<\/a>&nbsp;while in transit.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Undamaged delivery rate = (Orders delivered without damage \/ Total orders delivered) x 100<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-11-average-delivery-days\">11. Average delivery days<\/h3>\n\n\n\n<p>Also known as average transit time, this it the average number of days it takes shipping couriers to deliver orders.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Average delivery days = (Total days to deliver all orders \/ Total number of orders delivered)<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>A few notes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The more <a href=\"https:\/\/www.shipbob.com\/blog\/split-inventory-across-multiple-fulfillment-centers\/\">fulfilment centres you split your inventory<\/a> across, the lower this number will be. If you know which states or regions you are shipping to most often, you can optimise the fulfilment locations you ship from to further reduce <a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/shipping-zones\/\">shipping zones<\/a>, costs, and transit times.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/expedited-shipping\/\">Expedited shipping<\/a> and services like <a href=\"https:\/\/www.shipbob.com\/blog\/guide-offering-affordable-2-day-shipping\/\">2-day shipping<\/a> help keep this distribution metric lower as well.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/international-shipping\/\">International shipping<\/a> will usually cause this number to be much higher.<\/li>\n<\/ul>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6447\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Shipping-Performance-ShipBob-700x266.png?w=1280px\" alt=\"\" width=\"800\" height=\"304\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Shipping-Performance-ShipBob-700x266.png?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Shipping-Performance-ShipBob-700x266.png?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Shipping-Performance-ShipBob-700x266.png?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Shipping-Performance-ShipBob-700x266.png?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Shipping-Performance-ShipBob-700x266.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-12-average-storage-cost-per-unit\">12. Average storage cost per unit<\/h3>\n\n\n\n<p>This is the average cost of storing each unit of inventory (across all SKUs).<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Average storage <a href=\"https:\/\/www.shipbob.com\/blog\/cost-per-unit\/\">cost per unit<\/a> = Average units on hand \/ Total warehousing costs<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>Note: The larger the product(s) you sell, the more units you have on hand, and the higher your SKU count, the higher this figure will be.<\/p>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6456\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Inventory-units-and-costs-by-location-700x292.png?w=1280px\" alt=\"\" width=\"801\" height=\"334\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Inventory-units-and-costs-by-location-700x292.png?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Inventory-units-and-costs-by-location-700x292.png?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Inventory-units-and-costs-by-location-700x292.png?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Inventory-units-and-costs-by-location-700x292.png?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Inventory-units-and-costs-by-location-700x292.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-13-average-fulfillment-cost-per-order\">13. Average fulfilment cost per order<\/h3>\n\n\n\n<p>While you should also know how to <a href=\"https:\/\/www.shipbob.com\/blog\/calculating-cost-per-order\/\">calculate cost per order<\/a>, this it the average cost of fulfilling each order. This distribution metric lets you know the base cost of <a href=\"https:\/\/www.shipbob.com\/blog\/order-fulfillment\/\">order fulfilment<\/a> to determine if you can reduce it and save money.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Average fulfilment cost per order = Total fulfilment cost across orders \/ Total number of orders<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"504\" class=\"aligncenter size-large wp-image-15681\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/average-fulfillment-cost-per-order-700x504.png?w=1280px\" alt=\"average fulfillment cost per order\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/average-fulfillment-cost-per-order-700x504.png?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/average-fulfillment-cost-per-order-700x504.png?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/average-fulfillment-cost-per-order-700x504.png?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/average-fulfillment-cost-per-order-700x504.png?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/06\/average-fulfillment-cost-per-order-700x504.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-14-total-number-of-distribution-centers\">14. Total number of <a href=\"https:\/\/www.shipbob.com\/blog\/distribution-center\/\">distribution centres<\/a><\/h3>\n\n\n\n<p>This is the total number of distribution centres you own or lease, or the total you store inventory in through your 3PL.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Total number of distribution centres = Sum of all facilities that you store inventory in and ship orders out of<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>Note: This will be only one for the majority of small businesses, but as you grow, expand your reach, and want to <a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/reduce-shipping-costs\/\">reduce shipping costs<\/a> and\/or speed up deliveries to customers, you may choose to split your inventory and even utilise an <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/international-fulfillment\/\">international fulfilment<\/a> strategy.<\/p>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15368\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool-700x348.png?w=1280px\" alt=\"ShipBob Inventory Distribution Tool\" width=\"800\" height=\"398\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool-700x348.png?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool-700x348.png?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool-700x348.png?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool-700x348.png?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/ShipBob-Inventory-Distribution-Tool-700x348.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cNow we\u2019re at two fulfilment centres, and being able to have the analytics and see how everything is working together has been extremely helpful for me on the operations end. It definitely helps me with <a href=\"https:\/\/www.shipbob.com\/inventory-management\/\">inventory management<\/a> and see what\u2019s going on. It truly helped us on a day-to-day basis. Even though we\u2019ve grown, I haven\u2019t spent more time on the business from an operations standpoint.\u201d<\/em><\/p>\n\n\n\n<p>Dana Varrone, Director of Operations at Organic Olivia<\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-track-your-distribution-metrics\">How to track your distribution metrics<\/h2>\n\n\n\n<p>Most <a href=\"https:\/\/www.shipbob.com\/inventory-management\/software\/\">inventory management software<\/a> provides built-in reporting and distribution metrics (including ShipBob\u2019s free <a href=\"https:\/\/www.shipbob.com\/fulfillment-software\/\">fulfilment software<\/a> merchants get when using our fulfilment services).<\/p>\n\n\n\n<p>If you don\u2019t have technology at your disposal, you\u2019ll have to gather data from different systems and track distribution metrics in a spreadsheet to view performance over time.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"ShipBob Fulfillment Center Guided Tour - 3D 360\u00b0 VR Video\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/YdTbM4XlizY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-with-shipbob\">With ShipBob<\/h3>\n\n\n\n<p>When you outsource fulfilment to ShipBob, an easy way to track distribution metrics is through ShipBob\u2019s dashboard. <a href=\"https:\/\/www.shipbob.com\/blog\/new-free-analytics-reporting-tool\/\">ShipBob\u2019s powerful analytics tools<\/a> automatically tracks your most important distribution metrics.<\/p>\n\n\n\n<p>In just a couple clicks, you can view all the metrics you want, apply filters, export reports, and gain new insights. Here\u2019s how:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-1-jump-into-the-analytics-dashboard\">1. Jump into the Analytics dashboard<\/h4>\n\n\n\n<p>Once you log in to ShipBob, data will automatically populate in the Analytics tab.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-2-access-all-distribution-metrics\">2. Access all distribution metrics<\/h4>\n\n\n\n<p>You can track the following metrics through ShipBob\u2019s analytics dashboard:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fulfilment SLAs &amp; Exceptions: See the percentage of orders fulfilled on time, out of stock items, out-of-stock quantities, and more.<\/li>\n\n\n\n<li>Shipping Performance: Track transit time in days, top-selling states, and select shipping methods chosen at checkout to view their cart range as well as their average cart amount, shipping cost, and days in transit.<\/li>\n\n\n\n<li>Undelivered Shipments: View which orders our couriers have not yet delivered.<\/li>\n\n\n\n<li>Inventory On Hand: View current inventory on hand at each fulfilment centre and which inventory en route to our distribution centre(s).<\/li>\n\n\n\n<li>Inventory Reconciliation: View the movement and ongoing balance of inventory (i.e., your on hand inventory checked against activity in our fulfilment centres).<\/li>\n\n\n\n<li>Daily Inventory History: Check how much inventory you were holding for any SKU at any ShipBob fulfilment centre at any point in time.<\/li>\n\n\n\n<li>SKU Performance: View performance of your product(s) over time by channel sold.<\/li>\n\n\n\n<li>Inventory Planning: Visualise SKU velocity and days of inventory remaining on hand; input changes in order volume to calculate changes in inventory turnover.<\/li>\n\n\n\n<li>Inventory Maps &amp; Distributions: See your current distribution vs. ideal distribution in terms of fulfilment centre locations to optimise shipping speeds and costs.<\/li>\n\n\n\n<li>Accounting &amp; Billing Breakdown: View total monthly costs by fee type, an itemized record of charges for each month, average fulfilment cost per order, fulfilment cost per shipping option, and more.<\/li>\n\n\n\n<li>Accounting &amp; Storage Costs: View storage cost per unit and a detailed storage billing summary.<\/li>\n<\/ul>\n\n\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15682\" src=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map-700x498.png?w=1280px\" alt=\"Customer order map fulfilled by ShipBob\" width=\"800\" height=\"569\" data-responsive-img srcset=\"https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map-700x498.png?w=700px 650w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map-700x498.png?w=860px 768w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map-700x498.png?w=1180px 1080w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map-700x498.png?w=1400px 1280w, https:\/\/www.shipbob.com\/wp-content\/uploads\/2020\/01\/Customer-order-map-700x498.png?w=1600px 1440w\" fetchpriority=\"low\" \/><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cOverall, there is more transparency with ShipBob that even helps our team manage customer service better. I can see the granular stage the order is in \u2014 if it\u2019s being picked, packed, in transit, etc. That enhanced visibility is great. No other 3PLs offer that in my experience. Tracking our costs and how much we\u2019re spending on storage is a lot easier to understand.\u201d<\/em><\/p>\n\n\n\n<p>Wes Brown, Head of Operations at <a href=\"https:\/\/www.shipbob.com\/blog\/black-claw\/\">Black Claw LLC<\/a><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-without-shipbob\">Without ShipBob<\/h3>\n\n\n\n<p>In order to <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-tracking\/\">track inventory<\/a> metrics without ShipBob, you\u2019ll have to purchase software or rely on spreadsheets that are manually updated. Here\u2019s how you can track metrics with spreadsheets:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Create a spreadsheet with the appropriate tabs, rows, and column headers.<\/li>\n\n\n\n<li>Log into your logistics and shipping systems to gather the data you need. You can export the data or copy and paste to the spreadsheet.<\/li>\n\n\n\n<li>Update the spreadsheet with the required data (and continue with the same frequency going forward so you can track the exact points in time to identify trends).<\/li>\n\n\n\n<li>Create a new tab to show reports and charts as needed.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWith my old 3PL, I could never just open a page and get the info I wanted. I had to click several times, then export it, and try to make sense of it. ShipBob lets you manage your inventory while providing important data in a very digestible way.\u201d<\/em><\/p>\n\n\n\n<p>Wes Brown, Head of Operations at <a href=\"https:\/\/www.shipbob.com\/blog\/black-claw\/\">Black Claw LLC<\/a><\/p>\n<\/blockquote>\n\n\n\n<p>Manually tracking metrics is easy when your business is just starting out. But if you\u2019re fulfilling hundreds or thousands of orders per month and growing, manual tracking becomes much more complicated.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cAt my previous 3PL, nothing seemed to come easy. Everything was done on spreadsheets and it was very difficult to get the fulfilment data I needed. Now, ShipBob seamlessly provides data to help us make business decisions. ShipBob\u2019s analytics tool is a game-changer and it\u2019s helped me grow my business tremendously. With ShipBob\u2019s free analytics tool, it\u2019s so easy for any of my team members to pull data in real-time.\u201d<\/em><\/p>\n\n\n\n<p>Courtney Lee, founder of <a href=\"https:\/\/www.shipbob.com\/blog\/prymal\/\">Prymal<\/a><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-track-important-metrics-while-delivering-fast-affordable-shipping\">Track important metrics while delivering fast, affordable shipping<\/h2>\n\n\n\n<p>ShipBob is a tech-enabled 3PL that helps ecommerce businesses with <a href=\"https:\/\/www.shipbob.com\/blog\/retail-fulfillment\/\">retail fulfilment<\/a> and logistics in our <a href=\"https:\/\/www.shipbob.com\/3pl\/distribution\/\">distribution<\/a> centres to grow their business. When working with ShipBob, you get access to a <a href=\"https:\/\/www.shipbob.com\/blog\/distribution-partner\/\">distribution partner<\/a> with powerful analytics and distribution metrics reporting that make it easy to track operational performance across our <a href=\"https:\/\/www.shipbob.com\/blog\/differences-warehouse-fulfillment-center\/\">fulfilment centres<\/a>.<\/p>\n\n\n\n<p>We don\u2019t use anyone else\u2019s software. We built our own <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/warehouse-management-system-wms\/\">warehouse management system<\/a> (WMS), which acts as a control centre to compile all distribution metrics across all elements of our fulfilment centres. Our WMS tracks everything \u2014 from how many orders per hour a picker can pick to how long it takes to receive, count, and stow new inventory that arrives \u2014 to identify opportunities for improvement and learn from each of our fulfilment centres.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cI used to have to pull inventory numbers from three places everyday and move all the disparate data into a spreadsheet. ShipBob has an analytics tab in their dashboard with all of this information, which is great for end-of-month reconciliations.\u201d<\/em><\/p>\n\n\n\n<p>Wes Brown, Head of Operations at <a href=\"https:\/\/www.shipbob.com\/blog\/black-claw\/\">Black Claw LLC<\/a><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\">Conclusion<\/h2>\n\n\n\n<p>Every business benefits from tracking KPIs and distribution metrics. When choosing the distribution metrics that make the most sense for your business to track, the goal should be to focus on the metrics that directly impact your bottom line and customer satisfaction. By tracking these metrics and finding out where there are opportunities to improve, you can help sustain your business and improve processes.<\/p>\n\n\n\n<p>To learn how ShipBob can help with <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/\">ecommerce fulfilment<\/a> and managing <a href=\"https:\/\/www.shipbob.com\/ecommerce-inventory\/\">ecommerce inventory<\/a> while providing data on important cycle times and meeting key metrics, click the button below to learn more.<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request Fulfilment Pricing<\/strong><\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Have your own warehouse?<\/h2>\n\n\n\n<p>ShipBob has a best-in-class warehouse management system (WMS) for brands that have their own warehouse and need help managing inventory in real time, reducing picking, packing, and shipping errors, and scaling with ease. <\/p>\n\n\n\n<p>With ShipBob&#8217;s WMS, brands with their own warehouse can even leverage ShipBob&#8217;s fulfilment services in any of ShipBob&#8217;s fulfilment centres across the US, Canada, Europe, and Australia to improve cross-border shipping, reduce costs, and speed up deliveries.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/quote-plus\/\">Request WMS pricing here<\/a>.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Distribution metrics let you know if your warehouse and fulfilment operations are productive. Learn which distribution metrics you should track and how.<\/p>\n","protected":false},"author":110,"featured_media":260,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[2,5,7,8,11,13,15],"class_list":["post-259","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-3pl-third-party-logistics","blogcategories-distribution","blogcategories-fulfillment","blogcategories-inventory","blogcategories-order-management","blogcategories-shipping","blogcategories-warehouse-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Distribution Metrics for More Efficient Packing, Shipping, and Delivery - ShipBob UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipbob.com\/uk\/blog\/distribution-metrics\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Distribution Metrics for More Efficient Packing, Shipping, and Delivery\" \/>\n<meta property=\"og:description\" content=\"Distribution metrics let you know if your warehouse and fulfilment operations are productive. 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