How to Measure Warehouse Performance

Warehouse Performance, Cost, and Value Measures APPENDIX 3. SHAREHOLDER FACING METRICS

30

Category Definition Cost CPL Cost per Line Ratio of total cost of labor (operators, supervisors, and managers), occupancy, and equipment to the total number of order lines shipped. CPPL Cost per Perfect Line Ratio of total cost of labor (operators, supervisors, and managers), occupancy, and equipment to the total number of perfect (defect free) order lines shipped. CPO Cost per Order Ratio of total cost of labor (operators, supervisors, and managers), occupancy, and equipment to the total number of orders shipped. CPPO Cost per Perfect Order Ratio of total cost of labor (operators, supervisors, and managers), occupancy, and equipment to the total number of perfect (defect free) orders shipped. Productivity LPMH Lines per Man Hour Ratio of the total number of man hours spent (operators, supervisors, and managers) to the total order lines shipped. PLPMH Perfect Lines per Man Hour Ratio of the total number of man hours spent (operators, supervisors, and managers) to the total number of perfect (defect free) order lines shipped. Storage Density CDY Cube Density Ratio of the total storage cube capacity to the building footprint measured in square feet. DDY Dollar Density Ratio of the total value of the inventory storage capacity to the building footprint measured in square feet. SDY SKU Density Ratio of the total number of SKUs accommodatable to the building footprint measured in square feet. Resource Utilization WFU Workforce Utilization Ratio of the total non-idle working hours to the total number of working hours. DDU Dock Door Utilization Ratio of the hours dock doors are occupied to the number of hours of dock door time available. SLU Storage Location Utilization Ratio of the number of occupied storage locations to the total number of storage locations. VHU Vehicle Utilization Ratio of the number of non-idle vehicle working hours to the total number of available vehicle working hours. Metric

World Class Warehousing™