How to Measure Warehouse Performance

Warehouse Performance, Cost, and Value Measures

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Figure 3 Warehouse manager’s primary workforce concerns. Worker retention has been the number one indicator for as long as we have been conducting this survey.

Figure 4. Warehouse workforce turnover vs. Warehouse Quality Index™. The Warehouse Quality Index™, the product of inventory and shipping accuracy, is one of our overall indicators of warehouse quality performance. There is a dramatic drop off in the WQI as turnover increases. When we compare the cost of poor quality to the cost retaining a high-quality workforce we have yet to come across a situation where the warehouse was not significantly better off investing in the workforce. 3. Customer Facing Metrics The ultimate service goal for a warehouse is to provide customers with timely, perfect accuracy and availability. Doing so requires us to develop and maintain near perfect accuracy in the pre-requisite elements including putaway accuracy, inventory accuracy, and picking accuracy. Our RightChain™ Warehousing Scoreboard

World Class Warehousing™