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Key performance indicators (KPIs) assist you with identifying and defining progress toward business goals. They offer ways to measure how the company has been performing over a specific period of time. Warehouse managers need to keep track of WMS KPIs in order to identify areas of growth and we will identify the metrics that you should keep track of in the warehouse.


A WMS system offers plenty of benefits for the warehouse and leads to business growth. The WMS will be able to increase operational efficiency, enhance productivity levels and reduce costs. Here are some of the benefits that a WMS system offers.


  • Inventory Visibility: WMS assists you with gaining visibility in real-time as well as the accurate inventory levels. This helps you estimate how much stock you have and assists you in avoiding back orders. It also supports you in avoiding situations where you forget, lose or misplace inventory in the warehouse.


  • Tracking of Materials: You can easily trace inventory materials with the usage of lot, batch and serial numbering. Lot and batch numbers indicate the group in which materials were made. The serial number is used to track an item. WMS is then able to track any incoming receipts and outgoing shipments with the usage of lot, batch and serial numbers which eliminates any redundancy in inventory planning and allocation.


  • Space Optimization: WMS allows you to choose the best floor space that will increase the warehouse flow based on the characteristics of tasks and materials. Being able to use the floor space will allow you to reduce wastage of space. It also ensures that you are able to locate products quicker, saving time in the warehouse.


  • Ongoing Improvement: WMS is designed in a way that encourages continuous improvement. It receives new features consistently which allow you to implement them to gain new processes and innovations in the warehouse. This allows businesses to generate more profits, while reducing errors.



WMS KPIs to Keep Track of


KPIs assists businesses in gauging the progress that has been made toward your company’s goals. Warehouse managers need to keep track of the progress and improvements that the WMS system has provided. The KPIs listed below will assist you with measuring your warehouse efficiency and effectiveness.

  1. Inventory Accuracy

    Having record of accurate inventory levels is an essential part of warehousing. Having incorrect information about inventory can lead to high costs, inventory inaccuracies and a decrease in customer retention due to customer dissatisfaction. This usually occurs when you rely on Excel or manual processes for inventory tracking as it might indicate that inventory levels are a lot lower than they actually are. You might end up ordering more stock than you need.In order to address the issue of inaccurate inventory you need to invest in a system that uses barcodes to track inventory. Barcoding systems make use of current computerized maintenance management systems which leads to an improvement in inventory control as it can track shipments, manage purchase orders and monitor inventory levels.

  2. Inventory Turnover

    Inventory turnover is important as it measures the rate at which your inventory sells out. This will help you determine the best buying process as well as which products are in demand. You can gain better visibility into your inventory; enabling you to determine which stock items are obsolete and which products you should stop selling. Your warehouse inventory turnover rate will help you see how your warehouse is performing compared to the industry average.

  3. Efficiency of Receiving

    An important KPI to take note of is the efficiency of receiving as it measures received stock, customer returns, missing or damaged stock, and stock that is returned to the vendor. The efficiency of the receiving area affects all other warehouse operations. You should be aware of the rate at which inventory is counted and check for any deficiencies as they could negatively impact the entire warehouse.To measures the KPIs for receiving, you should look at the cost of receiving per receiving line, the volume received per man-hour, receiving dock door utilization percentage, accurate receipts percentage, and the time it takes to process a receipt.

  4. Order Picking and Packing

    Order picking is regarded as the most expensive and complicated process due to the fact that it requires a lot more labor and it is more complex. It also plays an important role in customer satisfaction. The KPIs for order picking are cost per like item picked, how many orders are picked per hour, costs of picking labor, usage of packaging and other consumables, and order cycle times. Inaccuracies in picking and packing can lead to errors in shipping and delivery should be avoided at all costs.

  5. Put-away

    Measuring the put-away KPI might not be the easiest to do, however it is not impossible. It is measured by including cycle time or accuracy rate, cost per item put away, time it takes from receiving to pick location, and hourly labor rates.

  6. Carrying Cost of Inventory

    The cost of carrying inventory refers to the costs you incur for storing inventory over a specific time period. The different costs you incur for using warehouse space include labor, insurance, storage, and freight. This KPI assists you in measuring the profit your current inventory will really bring in, while reducing the number of write-offs and write-downs you have.


KPIs are essential to know as they will affect the efficiency of your supply chain and the quality and demand of your current inventory. They can also identify areas where you need to jmprove and compare your performance to that of your competitors

Additionally,  learn the 6 Ways WMS Increases Employee Productivity.