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Key Warehouse Performance Metrics – What to Know

, Key Warehouse Performance Metrics – What to Know

Understanding the Workplace

Goal-setting is necessary for any successful business, but how do you know if you’re on track? Improvements in technology provide advanced performance metrics to evaluate everything from condition of warehouse equipment to order fill rates.

Every warehouse will have its own priorities, but there are some key performance indicators (KPIs) that are applicable to any operation. Here are five major performance metrics and why you should be tracking them.

Truck Time at the Receiving Dock

Companies often focus on the processes that occur on the warehouse floor, but an efficient receiving dock is a crucial part of fulfilling customer demands. Excessive truck times can point to labor shortage or other problems to correct.

Inventory Intake Time

On-site inventory that’s not ready to be picked can actually end up costing money in lost revenue. If it’s taking too long to transfer received items to pick locations, an upgrade in warehouse equipment could be the solution.


The longer a product sits in the warehouse, the more it impacts the bottom line with higher storage costs. Calculate storage cost per item and inventory cost per square foot to see if you’re optimizing inventory management.

Cost per Line Item Shipped

Order picking and packing form the meat-and-potatoes of warehouse operations. With the complexity of factors involved, cost per line item gives you a starting point from which to evaluate the overall process.

Perfect Order Percentage

What is the industry standard for perfect order percentage? Keep in mind that there’s a problem if reducing error rates results in higher expenses.

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