Definition of Key warehouse metrics and fulfillment metrics along with their business impact, importance, and improvement tips that every warehouse manager must understand and track.
Actual Time of Arrival (ATA) is a logistics term that signifies the exact moment a shipment reaches its destination.
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Actual Time of Departure (ATD) means the specific time when a shipment leaves its point of origin, such as a warehouse or distribution center
Advanced Shipping Notice (ASN) is a document provided by the supplier to the receiver detailing the specifics of a pending delivery
The average cost of shipping an order to the customer.
Percentage of orders that cannot be fulfilled immediately due to stock unavailability.
This includes all costs associated with holding inventory, such as warehousing costs, labor costs, insurance, taxes, and depreciation.
Cubage, also known as cubic volume, is a measure of the total volume occupied by an object, package, or shipment, expressed in cubic units
This is a measurement of how effectively the 3-dimensional space of a warehouse is used.
It refers to the total time taken from the moment an order is placed until the final product is delivered to the customer
The deviation in actual shipping time from the expected or promised shipping time. The shipping time refers to the interval elapsed between the instance when the shipment leaves the fulfillment center and when it reaches the intended destination.
Dock-to-stock time is the duration between the arrival of an inbound shipment at the warehouse dock and its placement in the appropriate storage location.
Inbound order accuracy measures the percentage of inbound orders that are received without any errors or discrepancies.
Inbound order cycle time is the duration from the placement of a purchase order with a supplier to the receipt of goods at the warehouse.
This refers to how accurately the physical inventory matches the inventory recorded in the warehouse management/inventory system.
This measures the amount of time inventory sits in a warehouse before being sold.
This metric calculates the number of days that inventory will last at the current demand rate.
This ratio shows how often inventory is sold and replaced over a given period.
This metric measures the speed at which inventory moves through a warehouse, from receipt to dispatch.
Percentage of order line items that can be completely fulfilled from available inventory.
Percentage of orders shipped on or before the promised date.
Percentage of orders that are canceled before they are shipped.
Time taken from order placement via the respective sales channel by the customer to final order delivery.
The number of orders processed and shipped per hour or day.
Percentage of orders picked without errors, such as wrong items or incorrect quantities.
Time taken from order receipt by the warehouse to order shipment. The receipt of order can be from various channels either online or offline.
The rate of returns is the percentage of inbound shipments that are sent back to the supplier due to damages, errors, or other issues.
Stock-Outs refer to the number of times a product is out of stock when it shouldn't be, leading to lost sales and customer dissatisfaction.
This is a measure of how efficiently different types of inventory are allocated to different types of storage space.
Supplier lead time is the time it takes for a product to travel from the supplier/factory to the warehouse.
Unit Load is a method of assembling various goods into a single, well-secured, and manageable load, typically for handling and transportation purposes
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