A warehouse requires storage indicators , programs and systems that record data continuously. This information is translated into Key Performance Indicators (KPIs), which measure the progress of operations.

KPIs not only serve to evaluate the center’s performance from time to time, but also facilitate warehouse management.

Let’s find out which warehouse area management indicators are very useful for better performance of your business.

What are storage indicators?

Storage indicators are those that show you the performance of a process by comparing it to a certain point in the company’s history or to any other benchmark performance indicator. In this way, it is possible to identify positive or negative developments and act accordingly.

Indicators can be used to measure the performance of a wide range of processes: receipt of goods, storage, order preparation, stock management, dispatch, delivery, transportation and returns management, among others. The objective is to improve productivity, optimize costs and maintain or increase the quality of service.

Examples of storage indicators

There are different types of storage indicators, some will help you, for example, to manage the receipt or shipment of merchandise, and others for better inventory management or measuring storage capacity.

These are some of the types of indicators that you should track for better control of your warehouse:

1. Goods receipt

Measures the average number of hours necessary for the goods receipt process. It reflects the warehouse’s operational capacity to convert received goods into recorded stock.

The higher the value, the greater the number of hours and the worse the performance. This allows failures that delay receipt in the goods receipt process to be detected.

2. Receptions per hour

This is one of the storage indicators that shows us the volume of products received and recognized per hour. It allows you to identify peaks and dips in activity at the docks and facilitates coordination with wholesalers. It also shows the productivity rate when receiving the stock.

3. Percentage of deliveries without damage, per day 

Measures the number of deliveries that arrive in perfect condition (all products must be intact). This allows you to monitor the performance of suppliers and review the quality of their service.

4. Supplier Punctuality

Indicates the percentage of suppliers that are punctual, that respect delivery times.

It is important to manage purchases, calculate reorder point and safety stock.

5. Order fulfillment rate 

Shows the relationship between incoming and outgoing orders (an order has multiple lines) 

This is one of the storage indicators that measures the ability to manage and ship orders. The closer the indicator is to 100%, the more positive it will be for the company.

6. Orders shipped on time 

This is another of the most important storage indicators as it measures the number of orders completed per hour. It indicates the effectiveness of the operations and the last control step that takes place before the shipment of the goods.

7. Internal order cycle time 

The time it takes to complete an order from receipt to leaving the shipping dock. Reveals the warehouse’s capacity to meet demand.

The shorter the time, the better the warehouse performance. It is a measure that can be used to detect delays in the collection process

8. Orders prepared on time and ready to be shipped 

Calculation of the percentage of completed orders, waiting to be shipped. An order is considered completed on time when the first shipment date is less than the expected shipment date.

When this percentage is high, it means that orders have been shipped earlier than expected; a sign of high efficiency and quality of service.

9. References or SKU codes in stock 

This percentage reflects the reference stock levels available in the warehouse. The more products there are in stock, the lower the risk of shortages. Updated data makes it easier to replenish merchandise.

10. Pending orders 

These are orders that the warehouse has received, but that are pending preparation due to lack of stock.

This is one of the storage indicators that shows the nature of the references that are out of stock.

11. Stock difference 

It is the difference between registered and actual stocks. If actual stock is less than entered, a loss and stock difference occurs.

It helps avoid overstocking and highlights the risk of not being able to meet demand. These discrepancies may be due to inventory errors, operational or handling errors, theft, fraud, damaged merchandise, etc.

12. Complete orders shipped 

It is the percentage of orders that have been shipped in their entirety. It is used to evaluate the productivity of collectors.

A decreasing percentage may indicate communication problems, order processing problems, or human error. The goal is to reach 100%.

This indicator is calculated based on the type of article or a specific article. It refers to the time that a reference remains in the stock of the logistics center. It allows you to adjust stock replenishment and review the merchandise turnover rate.

How to manage storage indicators

To ensure comprehensive warehouse management, it is essential to frequently review the metrics that measure your business. This good practice allows problems to be detected in time and the necessary measures to be taken so that failures have a minimal impact on the supply chain. 

Related Post