What you need to know about supply chain warehouse indicators?

What you need to know about supply chain warehouse indicators?

The portion of the distribution chain that holds items between the stage of production and the stage of demand is the warehouse. Management receives key information from warehouse operators regarding the condition, state, and configuration of stored goods. To meet transportation demands, storage is focused on lowering operational costs. To gain more knowledge you can also enrol for blue yonder WMS certification

Storage of inventory serves a variety of tasks:

  • Monitor transportation and manufacturing efficiencies.
  • Reap the benefits of exclusive offers on wholesale and forward orders.
  • Keep a supply of raw materials open.
  • Aid a company's user satisfaction guidelines.
  • Make adjustments to fluctuating market circumstances.
  • Break down the barriers of location and time between producers and customers.
  • Reach the intended degree of customer service while maintaining a minimum possible transportation cost.
  • Assist manufacturers' and users' fair and equitable efforts.

Prioritizing activities according to their importance to the operations is the first step in adopting KPI monitoring in a warehouse—or anywhere else in the distribution chain. By doing this, the emphasis is placed on strengthening the foundational frameworks for supplementary operations. Based on the kind of organization, the structure of an organization, and the warehouse structure, each warehouse may have a unique type of indication.

Various warehouse indicators include:

  • Occupation rate: The ratio of accessible storage areas to total warehouse areas should be taken into account when calculating the warehouse occupancy rate. This is a sign of how well the warehouse is managed.
  • Reimbursement Rate: Depending on selling income and warehouse operational expenses, the warehouse reimbursement rate is determined.
  • Faulted parts: The percentage of flaws or faults that are present in a process after a certain number of cycles is measured in parts per million. For each appropriate angle and crucial quality attribute, this indicator is calculated.
  • Yearly stock carrying expenses: The annual expenditures per unit associated with retaining stock in the warehouse are known as yearly stock carrying expenses. They consist of the expense of danger, accommodation, operations, and expenditures.
  • The proportion of unfulfilled orders: This measure involves the comparison of unfulfilled orders at the end of the day to the proportion of unfulfilled orders that actually should have just been completed.
  • Duration of time per product: The typical duration of time that a product is in stock and available for purchase at a warehouse or sale point. This inventory consists of unfinished goods, work-in-progress, and raw materials. 
  • The proportion of cash outflow: This is the portion of the purchase price that the functioning expenditure, which takes into account each warehouse procedure, reflects the final consumer.
  • Stock control: The level of precision with which the stock is registered in relation to the goods that are genuinely in the warehouse's stock is known as stock control, and it is stated as a proportion.
  • Performance quality: A measure of how quickly and completely a demand is met; it is based on the supply of the goods needed to complete each order.


These are just a few instances of warehouse indicators; there are several more, and each one is relevant to particular kinds of operations. Every operation requires businesses to create profit by combining all of their logistics-related tasks. If you desire then you can also go for Blue Yonder warehouse management system certificate courses.

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