{"id":7936,"date":"2023-04-11T18:17:51","date_gmt":"2023-04-11T18:17:51","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/warehouse-management\/warehouse-kpis\/"},"modified":"2026-04-01T18:21:25","modified_gmt":"2026-04-01T18:21:25","slug":"warehouse-kpis","status":"publish","type":"page","link":"https:\/\/www.shipbob.com\/uk\/warehouse-management\/warehouse-kpis\/","title":{"rendered":"Warehouse KPIs"},"content":{"rendered":"\n<section class=\"wp-block-shipbob-blocks-section-hero-standard-form hero-standard\"><div class=\"container row\"><div class=\"col hero-standard-content\"><h1 class=\"hero-standard-title \">Warehouse KPIs Guide<\/h1>\n<p><a href=\"https:\/\/www.shipbob.com\/fast-fulfillment\/\">Fast fulfilment<\/a> starts with proper <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/\">warehouse management<\/a>, which determines how efficiently you receive, track, and store inventory in a way that gets customers orders out the door faster.<\/p>\n\n\n\n<p>But how do you know if a warehouse is performing well?<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/warehousing\/\">Warehousing<\/a> requires keeping a close eye on performance by forecasting and monitoring <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-metrics\/\">supply chain KPIs<\/a> related to receiving, inventory management, and fulfilment.<\/p>\n\n\n\n<p>By failing to monitor key KPIs, it will be hard to <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/warehouse-optimization\/\" target=\"_blank\" rel=\"noreferrer noopener\">optimise your warehouse<\/a> and make improvements accordingly.&nbsp;<\/p>\n\n\n\n<p>In this article, learn how to track warehouse performance by monitoring the right KPIs.<\/p>\n\n\n\n<h4>So, what do you want to learn?<\/h4>\n<ul class=\"list-check\">\n \t<li style=\"list-style-type: none\">\n\n<li><a href=\"#w-kpi\">Warehouse KPIs Explained<\/a><\/li>\n\n<li><a href=\"#w-trk\">The Importance of Tracking Warehouse KPIs<\/a><\/li>\n\n<li><a href=\"#w-xmp\">23 Warehouse KPI Examples<\/a><\/li>\n\n<li><a href=\"#h-trk\">How to Track Warehouse KPIs<\/a><\/li>\n\n<li><a href=\"#w-wms\">Track Crucial Warehouse KPIs with a WMS<\/a><\/li>\n\n<li><a href=\"#w-spb\">Outsource Fulfilment to ShipBob<\/a><\/li>\n\n<li><a href=\"#w-faq\">Warehouse KPI FAQs<\/a><\/li>\n\n<\/ul>\n<\/div><div class=\"col hero-standard-form offset-1  \"><div class=\"card hero-home-customer-card form-card\"><h3 class=\"form-title\">Request WMS Pricing<\/h3><h3 class=\"h4 form-subtitle\">Let&#8217;s talk. See if ShipBob&#8217;s warehouse management system is right for your warehouse.<\/h3><p class=\"form-copy\"><\/p><div class=\"card-body form-5fa2a87b-e745-450e-871c-95ecc2c7f85a\" data-controller=\"form-controller\" data-form-controller-form-id-value=\"5fa2a87b-e745-450e-871c-95ecc2c7f85a\" data-form-controller-form-container-query-value=\"form-5fa2a87b-e745-450e-871c-95ecc2c7f85a\"><\/div><p class=\"form-note\">A fulfilment expert will get back to you shortly. <a href=\"\/privacy-policy\/\">Privacy Policy<\/a><\/p><\/div><\/div><\/div><\/section>\n\n\n\n<div class=\"post-cta\" style=\"background-color:#0a0838\"><div class=\"container\"><div class=\"post-cta-wrapper\"><div class=\"post-cta-item\"><h2>Distributed Inventory: How Multiple Fulfilment Centers Can Reduce Transit Times &amp; Shipping Costs<\/h2><p>Ship faster &amp; save money by splitting your inventory. Learn how. <\/p><a class=\"btn\" href=\"https:\/\/resources.shipbob.com\/the-distributed-inventory-strategy\" target=\"_self\" rel=\"noopener\">Download the guide<\/a><\/div><div class=\"post-cta-item\"><img decoding=\"async\" is=\"responsive-img\" loading=\"lazy\" src=\"https:\/\/resources.shipbob.com\/hubfs\/Distributed%20Inventory%20eGuide.png\" class=\"post-cta-item-img\" alt=\"3pl\"><\/div><\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"w-kpi\">What are warehouse key performance indicators (KPIs)?<\/h2>\n\n\n\n<p>Warehouse key performance indicators (KPIs) are metrics associated with measuring warehouse performance, from the receiving process to fulfilling orders.<\/p>\n\n\n\n<p>Setting warehouse KPIs makes it easy to monitor <a href=\"https:\/\/coda.io\/@coda\/okrs\">OKRs<\/a> by tracking how efficiently an <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-warehousing\/\">ecommerce warehouse<\/a> is operating while also uncovering potential problems, managing risks, and finding ways to optimise workflows.<\/p>\n\n\n\n<p>There is a lot that goes into warehouse management, which is why warehouse KPIs are often broken down into different categories, from inventory management to fulfilment.&nbsp;<\/p>\n\n\n\n<p>Some examples of warehouse KPIs are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Inventory KPIs \u2013 Inventory needs to be kept in a delicate balance; too much and there might be too much money tied to unsold inventory; too little and there may be a risk of a stockout. Monitoring inventory KPIs can help keep the balance.&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li>Receiving KPIs \u2013 Making sure businesses get what you paid for and making sure it arrives when it is needed is the first step in the warehousing process. A lot can go wrong if there are not measures in place.&nbsp;<\/li>\n\n\n\n<li>Put-away KPIs \u2013 This refers to a warehouse\u2019s ability to put products they receive away in a certain location in a certain amount of time. This is especially important for perishable items with shorter shelf lives.&nbsp;<\/li>\n\n\n\n<li>Picking KPIs \u2013 When an order is placed, it is up to picking teams to pick the right product in a time-efficient manner. Monitoring picking KPIs can highlight potential setbacks during this process.&nbsp;&nbsp;<\/li>\n\n\n\n<li>Performance KPIs \u2013 Consider these metrics the equivalent to a record for a sports team, performance KPIs show your overall wins and losses and can be invaluable to growth.&nbsp;<\/li>\n\n\n\n<li>Safety KPIs \u2013 With a finger on the pulse of safety, businesses can reduce the amount of work-related injuries before they happen.<\/li>\n<\/ul>\n\n\n\n<div class=\"wms-cta\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t\t\t<div class=\"col wms-cta-content\">\n\t\t\t\t\t\t\t<h3>ShipBob&#8217;s Warehouse Management System (WMS)<\/h3>\n\t\t\t\t\t\t\t<p>ShipBob&#8217;s WMS helps your warehouse reduce picking errors, manage inventory in real time, and fulfil orders faster.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"wms-cta-button-container\">\n\t\t\t\t\t\t\t<a href=\"\/product\/merchant-plus\/\" class=\"btn btn-primary\">Learn More<\/a>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"w-trk\">Why tracking warehouse KPIs is important<\/h2>\n\n\n\n<p>Measuring warehouse KPIs is a critical part of managing an <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-efficiency\/\">efficient supply chain<\/a>. It also provides guidelines on what to look for when conducting a <a href=\"https:\/\/www.shipbob.com\/blog\/warehouse-audit\/\">warehouse audit<\/a>.<\/p>\n\n\n\n<p>Here is a breakdown of the importance of tracking warehouse KPIs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-warehouse-kpis-improve-warehouse-efficiency\">Warehouse KPIs improve warehouse efficiency<\/h3>\n\n\n\n<p>Tracking warehouse KPIs helps to improve warehouse efficiency.<\/p>\n\n\n\n<p>By tracking performance, you can identify areas to focus on, improve upon, and invest in. There are many factors that play into an efficient warehouse, so it\u2019s important to identify any areas of weaknesses, so you can optimise and improve accordingly.&nbsp;&nbsp;<\/p>\n\n\n\n<p>For instance, there have been many advancements in <a href=\"https:\/\/www.shipbob.com\/blog\/digital-warehousing\/\">digital warehousing<\/a> that help to cut out mundane tasks by automating them, which eliminates time-consuming manual work, saving thousands of man-hours.<\/p>\n\n\n\n<p>But maybe it\u2019s not so much inefficiencies in how your team operates that\u2019s causing inefficiencies, but rather your current <a href=\"https:\/\/www.shipbob.com\/blog\/warehouse-setup\/\">warehouse setup<\/a>. If you\u2019re tracking the right KPIs, you might find that technology could help optimise your storage, as well as streamline <a href=\"https:\/\/www.shipbob.com\/blog\/order-fulfillment\/\">order fulfilment<\/a> workflows.<\/p>\n\n\n\n<p>Overall, tracking warehouse KPIs can show you how to improve efficiency, whether it\u2019s by implementing technology or improving internal processes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-warehouse-kpis-can-save-retailers-money\">Warehouse KPIs can save retailers money<\/h3>\n\n\n\n<p>Along with improving efficiencies, optimising areas of your <a href=\"https:\/\/www.shipbob.com\/warehouse-operations\/\">warehouse operations<\/a> that need improvement can help to optimise <a href=\"https:\/\/www.shipbob.com\/blog\/logistics-costs\/\">logistics costs<\/a>.&nbsp;<\/p>\n\n\n\n<p>Saving money is top of mind for most ecommerce businesses \u2014 but it\u2019s never been more important. In 2021 alone, logistics warehouse tenants have seen a <a href=\"https:\/\/www.freightwaves.com\/news\/logistics-warehouse-tenants-should-brace-for-10-rate-hikes-cbre\">10% rate hike<\/a> due to high demand for <a href=\"https:\/\/www.shipbob.com\/blog\/warehouse-expansion\/\">warehouse expansion<\/a> and construction. Just the cost of renting a warehouse can quickly cut into profit margins.<\/p>\n\n\n\n<p>Taking the time to find ways to optimise efficiency and workflows can help you \u2014 and better yet, identifying how much warehouse space you really need. This might also include taking a look at how to <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-optimization\/\">optimise inventory<\/a> levels to meet demand while cutting back on holding costs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-improves-customer-satisfaction\">Improves customer satisfaction<\/h3>\n\n\n\n<p>Whether it\u2019s improving fulfilment workflows to ensure accuracy, or finding ways to speed up the returns management process, much of how your <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-warehousing\/\">ecommerce warehouse<\/a> operates impacts customer satisfaction.<\/p>\n\n\n\n<p>That\u2019s why it\u2019s essential to track certain <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-kpis\/\">ecommerce KPIs<\/a> that identify how your warehouse operation is influencing the customer experience, such as order accuracy and shipping times.<\/p>\n\n\n\n<p>Warehouse location plays a key role in setting up your warehouse(s) to meet customer expectations. For instance, you might find that moving your warehouse to a more centralised location closer to more of your customers can enable faster and more affordable shipping.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-ensure-better-workplace-satisfaction-and-safety\">Ensure better workplace satisfaction and safety<\/h3>\n\n\n\n<p>The more safe and engaged your team feels, the more efficient your warehouse will be.<\/p>\n\n\n\n<p>In 2019, according to the <a href=\"https:\/\/www.bls.gov\/iag\/tgs\/iag493.htm\">US Bureau of Labor Statistics<\/a>, the transportation and warehousing worker injury rate was <a href=\"https:\/\/www.bls.gov\/news.release\/pdf\/osh.pdf\">4.4 per 100 full-time workers<\/a>. Unfortunately, warehouse injuries and fatality rates continue to rise.<\/p>\n\n\n\n<p>Though speed is a top priority, an unsafe environment will only slow your team down. By looking at safety KPIs, you can determine whether or not your internal processes encourage a safe environment for your employees, and can therefore lead to higher productivity.<\/p>\n\n\n\n<p>For example, not leaving trash or equipment in the middle of the floor is both safe and makes getting around on a forklift easier. And creating a one-way workflow can be an efficient way to set up warehouse workstations as it helps to ensure safety and eliminate congestion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"w-xmp\">23 Examples of warehouse KPIs to track for measuring &amp; improving performance<\/h2>\n\n\n\n<p>There are several effective ways to measure warehouse performance, from how well inventory is managed to how efficient your warehouse picking and packing process is.&nbsp;<\/p>\n\n\n\n<p>Below is a breakdown of the different warehouse KPIs by type and what metrics to follow.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-inventory-kpis\">Inventory KPIs<\/h3>\n\n\n\n<p>Inventory is the centre of your logistics operations. Without enough inventory to meet demand, it will be challenging to run an efficient warehouse. And too much inventory can also lead to higher costs with too much capital tied up in it before you sell it.<\/p>\n\n\n\n<p>Here are the essential metrics to track, so you can measure the effectiveness of your <a href=\"https:\/\/www.shipbob.com\/inventory-management\/warehouse\/\">warehouse inventory management<\/a> process.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Inventory-to-sales ratio: This KPI tracks <a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-days-on-hand\/\">inventory on hand<\/a> at the end of the month versus the number of sales you made within the same month. You can use this metric to detect when your sales are dropping as average inventory units on hand increase or don\u2019t deplete as fast as they typically do.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/blog\/inventory-carrying-costs\/\">Inventory carrying cost<\/a>: Your inventory carrying cost is calculated by adding up all the expenses associated with holding and storing unsold <a href=\"https:\/\/www.shipbob.com\/blog\/finished-goods-inventory\/\">finished goods<\/a>. Tracking how much you\u2019re spending on carrying costs helps you keep track of inventory expenses and makes <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-accounting\/\">inventory accounting<\/a> much easier during tax season.&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-accuracy\/\">Inventory accuracy<\/a>: Inventory accuracy refers to monitoring physical counts of inventory and comparing it with what has been recorded. Your inventory accuracy rate can give you some insight into how well you manage and track inventory as it enters and leaves the warehouse.&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-shrinkage\/\">Inventory shrinkage<\/a>: Similar to inventory accuracy, monitoring inventory shrinkage is when actual <a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-tracking\/\">inventory levels<\/a> are less than what\u2019s recorded in a business\u2019s balance sheet. Inventory shrinkage could occur for a multitude of reasons like theft, damage, or even supplier fraud.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/inventory-turnover-ratio\/\">Inventory turnover rate<\/a>: Tracking inventory turnover shows how many times inventory is sold and then replaced in a specific time period. Understanding the average inventory turnover rate is a critical measure of business performance, cost management, and sales. It can also offer you insights into what your best-selling versus slow-moving items are. The faster you turn over inventory, the quicker you are selling products&nbsp; and recouping money.<\/li>\n<\/ul>\n\n\n\n<p>Tracking these essential inventory KPIs is a great start in optimising your warehouse, but it\u2019s also time-consuming and requires technology \u2014 such as an inventory management system \u2014 to accurately track inventory activity in real time.&nbsp;<\/p>\n\n\n\n<p>That\u2019s why many brands turn to a 3PL like ShipBob to help with <a href=\"https:\/\/www.shipbob.com\/inventory-management\/\">inventory management<\/a>. ShipBob\u2019s proprietary <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/warehouse-management-system-wms\/\">warehouse management system (WMS)<\/a> includes built-in inventory tracking tools, so merchants are able to easily <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-reconciliation\/\">reconcile inventory<\/a> without being involved in the day-to-day operations.<\/p>\n\n\n\n<p>From the ShipBob dashboard, we make it easy to pull custom <a href=\"https:\/\/www.shipbob.com\/blog\/inventory-report\/\">inventory reports<\/a>, which let you view a trend analysis of your products and give you more control over the <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-metrics\/\">key metrics<\/a> that drive business growth, including carrying costs and other operational expenses.<\/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>\u201cWe utilise ShipBob\u2019s Inventory API, which allows us to programmatically retrieve real-time data on how many units of each product are currently stored at ShipBob\u2019s warehouses. We currently use this API to generate custom reports to tie this inventory data into our accounting platforms.\u201d<\/em><\/p>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/waveform-lighting\/\">Waveform Lighting Team<\/a><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-receiving-kpis\">Receiving KPIs<\/h3>\n\n\n\n<p>Receiving inventory is a crucial part of managing a warehouse. It ensures that all inventory is accounted for before it gets stowed away.<\/p>\n\n\n\n<p>Let\u2019s say you order more inventory from your <a href=\"https:\/\/www.shipbob.com\/blog\/supplier-relationship-management\/\">supplier<\/a> and it\u2019s put on the <a href=\"https:\/\/www.shipbob.com\/blog\/warehouse-rack\/\">warehouse racks<\/a> only for you to find out later that what you ordered didn\u2019t match up to what you received.<\/p>\n\n\n\n<p>Monitoring <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/warehouse-receiving\/\">warehouse receiving<\/a> performance ensures that your receiving process is efficient and accurate. It also provides you with a better understanding of when to reorder more inventory, putting both production and receiving timelines into consideration. Here are some of the most common receiving KPIs.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Receiving efficiency: Monitoring receiving efficiency tracks the productivity of work being carried out when receiving more stock. Any inefficiency in this area could indicate a need to optimise it with more streamlined processes, staff training, or new equipment.<\/li>\n\n\n\n<li>Receiving cycle time: The receiving cycle time refers to how long it takes to process new stock received in your warehouse. It includes everything from counting it, to sorting and storing it. A long receiving cycle time could indicate a need to improve your processes to make them more efficient.<\/li>\n\n\n\n<li>Cost of receiving per line: Warehouse receiving involves time and labour. Cost of receiving per line refers to how much money you spend on receiving new products.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-put-away-kpis\">Put-away KPIs<\/h3>\n\n\n\n<p>The following KPIs can help you measure your put-away process, which refers to how efficiently your team puts away new inventory to their assigned areas within the warehouse.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Put-away cycle time: The put-away cycle time refers to how long it takes to put away items in your warehouse. An efficient put-away process will show up in the form of shorter put-away cycle times while a long put-away cycle time could indicate that you need to review your existing process and identify ways to improve.Put-away accuracy:&nbsp;<\/li>\n\n\n\n<li>Put-away accuracy refers to the percentage of inventory that you put away correctly the first time. This KPI is critical to follow, because it can influence your picking process and how accurate items are being fulfilled. It can also slow down your team later on in the process if they\u2019re struggling to find items in the warehouse when fulfilling orders.&nbsp;<\/li>\n\n\n\n<li>Put-away cost per line: The cost per line KPI gives you an idea of how much you spend on putting away each line of items, with higher costs indicating a potential inefficiency in your current process.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-order-picking-kpis\">Order picking KPIs<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/warehouse-operations\/warehouse-order-picking\/\">Warehouse picking<\/a> requires efficient workflows that allow your picking team to quickly pick the right items per order without compromising accuracy, such as mis-picks. To track picking performance, here are a few KPIs worth monitoring.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Picking efficiency: Also known as \u201cpicking productivity,\u201d tracking picking efficiency refers to the number of order lines that are picked every hour.<\/li>\n\n\n\n<li>Picking accuracy: Accuracy is one of the most critical warehouse KPIs. It can help you identify how many orders are being picked and packed without errors. If accuracy rates start to fall, it\u2019s a sign there isn\u2019t enough bandwidth or your team needs more training.<\/li>\n\n\n\n<li>Picking cycle time: The picking cycle time tells you how long it takes to pick each order. If cycle times are longer than average, it might be time to implement warehouse technology and automation tools.<\/li>\n\n\n\n<li>Picking and packing cost: Of course, tracking picking and pack costs can tell you how much you\u2019re spending, from labour costs to packaging materials.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>If you\u2019re having trouble with fulfilling orders accurately, outsourcing the pick-and-pack process to a 3PL is worth the investment. ShipBob\u2019s <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/pick-pack-fulfillment\/\">pick and pack fulfilment<\/a> service is designed to keep your costs low while increasing efficiency and accuracy.<\/p>\n\n\n\n<p>As soon as an order is created or automatically imported into your ShipBob dashboard, it is seamlessly routed to the closest <a href=\"https:\/\/www.shipbob.com\/blog\/differences-warehouse-fulfillment-center\/\">fulfilment centre<\/a> to be fulfilled. Once we receive an order, a team member is given a digital picking list of the items, quantities, and storage locations at our facility to procure and count to complete their pick, scanning each item every step of the way so you can fully see where an order is in the fulfilment process in real time.<\/p>\n\n\n\n<p>Our facilities are also optimised to efficiently fulfil orders by using methods such as <a href=\"https:\/\/www.shipbob.com\/blog\/batch-picking\/\">batch picking<\/a>. The efficiencies we gain can be passed back on to you in the form of cost-savings.<\/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>\u201cWe see outsourcing fulfilment as a cost-savings that will save you money in the long run. 3PLs negotiate rates, give you back all the time you\u2019d spend on fulfilment, and reduce the errors you\u2019d make.<\/em><\/p>\n\n\n\n<p><em>We looked into opening our own warehouses and hiring employees, but couldn\u2019t come close with what 3PLs charge for picking, packing, and shipping.<\/em><\/p>\n\n\n\n<p><em>We\u2019d also be worried about scheduling fulfilment shifts, ordering boxes and shipping labels, and dealing with the extra headaches of running logistics.\u201d<\/em><\/p>\n\n\n\n<p>Gerard Ecker, Founder &amp; CEO of <a href=\"https:\/\/www.shipbob.com\/blog\/ocean-and-co\/\">Ocean &amp; Co.<\/a><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-performance-kpis\">Performance KPIs<\/h3>\n\n\n\n<p>Other important parts of warehouse operations include <a href=\"https:\/\/www.shipbob.com\/blog\/order-management\/\">order management<\/a> and shipping. Looking at your entire supply chain operation as a whole can provide more insights into how well your warehouse operations are performing.<\/p>\n\n\n\n<p>Here are a few more <a href=\"https:\/\/www.shipbob.com\/blog\/distribution-metrics\/\">distribution metrics<\/a> and performance-related KPIs worth tracking to optimise warehouse performance.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Order lead time: Relating to customer satisfaction, this order lead time metric helps you understand how long it takes for a customer to physically receive their order once they\u2019ve placed it.<\/li>\n\n\n\n<li>Total order cycle time: With a direct impact on fulfilment, average order cycle time refers to how long it takes to get your order ready to be shipped. It starts from the moment an order is placed and includes the entire process of picking, packing, and any other step(s) needed for it to get in the carrier\u2019s hands.<\/li>\n\n\n\n<li>On-time shipping rate: On-time shipping rate keeps track of how well you manage to ship out orders without delay, as well as tracking <a href=\"https:\/\/www.shipbob.com\/blog\/how-last-mile-delivery-works\/\">last-mile delivery<\/a> times by carrier partner. This helps you decide what shipping methods to offer and what couriers to partner with.<\/li>\n\n\n\n<li>Rate of returns: <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-returns\/\">Ecommerce return rate<\/a> is also important to measure because it requires labour and costs to process and return the items to their designated areas within the warehouse (or to dispose of them) on top of extra potential shipping or product costs. Whether returns are due to product damage, an unwanted gift, a product description that doesn\u2019t match reality, or the incorrect item sent \u2014 tracking returns can provide insights into product quality and overall customer satisfaction.<\/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>\u201cCompared to other warehouses we\u2019ve worked with, ShipBob processes orders so quickly to get them out the door faster.\u201d<\/em><\/p>\n\n\n\n<p>Harley Abrams, Operations Manager of <a href=\"https:\/\/www.shipbob.com\/blog\/superspeed-golf\/\">SuperSpeed Golf, LLC<\/a><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-safety-kpis\">Safety KPIs<\/h3>\n\n\n\n<p>Accidents in the warehouse not only put your staff at risk but could seriously damage your bottom line. Be sure to also track <a href=\"https:\/\/www.shipbob.com\/warehouse-management\/warehouse-safety\/\">warehouse safety<\/a> when monitoring warehouse performance.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Accidents per year: When it comes to accidents per year, it\u2019s important to keep this number as low as possible with the goal of zero accidents per year.<\/li>\n\n\n\n<li>Time since last accident: Though the goal is to have no accidents, unexpected accidents do happen. But, hopefully, the time between accidents is high and infrequent.<\/li>\n\n\n\n<li>Time lost due to injury: It should always be a business\u2019s priority to keep people safe. While accidents aren\u2019t necessarily thought to be measured in terms of time, tracking time lost due to injury shines more light on how much of an impact injury has on workplace productivity, employee satisfaction, and overall costs.<\/li>\n\n\n\n<li>Total recordable incident rate (TRIR):&nbsp; TRIR is the total number of work-related injuries per 100 full-time workers during a one-year period. Note: OSHA uses this metric to gauge a business\u2019s safety performance and monitor high-risk industries.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-so-how-do-you-track-all-of-those\">So how do you track all of those?<\/h2>\n\n\n\n<p>Keeping track of all these warehouse KPIs can be a challenge while also trying to manage other parts of your business, such as product development, marketing, and <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-customer-service\/\">customer service<\/a>. That\u2019s where technology and automation come in.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/warehouse-automation\/\">Warehouse automation<\/a> is an integral part of <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-optimization\/\">optimising the supply chain<\/a>, as it reduces the time, effort, and errors caused by manual, variable tasks. Warehouse technology is also used to automatically record and aggregate data all in one place, so it\u2019s easy to analyse performance and make improvements accordingly.<\/p>\n\n\n\n<p>However, warehouse automation and technology can be big investments (on top of the high cost of leasing a warehouse or purchasing land). <a href=\"https:\/\/www.shipbob.com\/blog\/technology-enabled-3pl-fulfillment-top-benefits\/\">Tech-enabled 3PLs<\/a> like ShipBob offer the fulfilment infrastructure, technology, expertise, and customer support needed to grow a successful online brand without the need to run your own warehouse and invest in premium fulfilment technology.<\/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>\u201cLogistics is something you never think about until it stops working, and we\u2019ve never come to that point with ShipBob. Everything just works. We are super happy with ShipBob and very impressed by how well they\u2019ve pumped out our large volume of orders.\u201d<\/em><\/p>\n\n\n\n<p>Sergio Tache, CEO of <a href=\"https:\/\/www.shipbob.com\/blog\/dossier\/\">Dossier<\/a><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"w-wms\">Get a WMS to track warehouse KPIs<\/h2>\n\n\n\n<p>To track and improve warehouse KPIs, you need the right tech in place. 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 <a href=\"https:\/\/www.shipbob.com\/product\/wms\/\">ShipBob&#8217;s WMS<\/a>, brands with their own warehouse can even leverage ShipBob\u2019s fulfilment services in any of ShipBob\u2019s 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<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\" id=\"w-spb\">Stop worrying about warehouse performance \u2014 outsource fulfilment to ShipBob!<\/h2>\n\n\n\n<p>From product development to reaching new customers \u2014 online <a href=\"https:\/\/www.shipbob.com\/blog\/retail-kpis\/\">retailers<\/a> already have a lot on their plate. That\u2019s why fast-growing <a href=\"https:\/\/www.shipbob.com\/blog\/direct-to-consumer-brands-and-3pl\/\">direct-to-consumer (DTC) brands<\/a> turn to ShipBob.&nbsp;<\/p>\n\n\n\n<p>By <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/outsourced-fulfillment\/\">outsourcing fulfilment<\/a> to ShipBob, you don\u2019t have to manage your own warehouse to maintain control over operations. From receiving inventory to orders leaving the warehouse, ShipBob offers full visibility into your <a href=\"https:\/\/www.shipbob.com\/blog\/logistics-operations\/\">logistics operations<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube 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?start=3&#038;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<p>All of ShipBob\u2019s <a href=\"https:\/\/www.shipbob.com\/blog\/distribution-center\/\">distribution centres<\/a> are powered by the same, best-in-class technology, which makes it easy to track warehouse performance, real-time inventory levels, and fulfilment and shipping activity all in one place.<\/p>\n\n\n\n<p>Our <a href=\"https:\/\/www.shipbob.com\/blog\/new-free-analytics-reporting-tool\/\">data and analytics reporting<\/a> provide all the insights you need to better track warehouse KPIs, as well as other <a href=\"https:\/\/www.shipbob.com\/blog\/supply-chain-analytics\/\">supply chain analytics<\/a>.<\/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 provided us with an in-depth analysis based on our order history and helped us understand which custom box sizes we should stock ourselves at ShipBob warehouses to help reduce our costs.<\/em><\/p>\n\n\n\n<p><em>We feel like ShipBob is a partner that\u2019s in it together with us. We never get the sense that ShipBob is just interested in getting our fulfilment fees. It is much more than that \u2014 they really care about our success and what makes us successful as a company.\u201d<\/em><\/p>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/waveform-lighting\/\">Waveform Lighting Team<\/a><\/p>\n<\/blockquote>\n\n\n\n<p>Ready to learn how ShipBob can help you better manage your supply chain by taking warehousing off your plate? Click the button below for more information and <a href=\"https:\/\/www.shipbob.com\/pricing\/\">custom pricing<\/a>.<\/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\" id=\"h-warehouse-kpis-faqs\">Warehouse KPIs FAQs<\/h2>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"false\"><div class=\"single-faq-title-contianer\"><h4 itemprop=\"name\" class=\"single-faq-title\">How do you evaluate warehouse performance?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" data-faq-controller-target=\"answer\"><div itemprop=\"text\">\n<p>You can evaluate warehouse performance by keeping track of vital warehouse KPIs that relate to receiving, inventory management, warehouse safety and fulfilment and shipping performance. Monitoring the different parts of your warehouse will provide you with insights on how to optimise workflows and processes.&nbsp;<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"false\"><div class=\"single-faq-title-contianer\"><h4 itemprop=\"name\" class=\"single-faq-title\">How are warehouse KPIs measured?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" is=\"responsive-img\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" data-faq-controller-target=\"answer\"><div itemprop=\"text\">\n<p>Warehouse KPIs are measured using different formulas and calculations. However, since there is a lot of activity that occurs within a warehouse, it\u2019s always best to invest in a warehouse management system, as well as inventory management tools to help you automatically track activity and aggregate data all in one place.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"false\"><div class=\"single-faq-title-contianer\"><h4 itemprop=\"name\" class=\"single-faq-title\">What metrics should a warehouse track?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" is=\"responsive-img\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" data-faq-controller-target=\"answer\"><div itemprop=\"text\">\n<p>There are several different metrics to track when managing your own warehouse. Some of the most important metrics include carrying costs, order accuracy, and inventory turnover rate but you should also look at receiving KPIs, put-away KPIs, picking KPIs, safety KPIs, and more.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<p> <\/p>\n\n\n\n<p> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Distributed Inventory: How Multiple Fulfilment Centers Can Reduce Transit Times &amp; Shipping Costs Ship faster &amp; save money by splitting your inventory. Learn how. Download the guide What are warehouse key performance indicators (KPIs)? Warehouse key performance indicators (KPIs) are metrics associated with measuring warehouse performance, from the receiving process to fulfilling orders. Setting warehouse [&hellip;]<\/p>\n","protected":false},"author":149,"featured_media":0,"parent":7927,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"hub.php","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"class_list":["post-7936","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>23 Warehouse KPIs and Metrics to Improve Performance<\/title>\n<meta name=\"description\" content=\"Learn the importance of tracking warehouse KPIs, what to track, and how to monitor the right metrics to improve your ecommerce operations.\" \/>\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\/warehouse-management\/warehouse-kpis\/\" \/>\n<meta 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