Warehouse KPI definition library

Make sure everyone calculates the number the same way.

These are metric definitions—not universal performance targets. Each card shows what to count, what to divide by, when timing starts and stops, what to leave out, and a worked example.

17 warehouse measurements · Plain formulas · Worked examplesNot sure about a term? Open the plain-English glossary

01Write the counting rule before the test starts

02Show the slow and fast cases—not only the average

03Compare similar orders, shifts, and problem types

04Watch quality and safety beside speed

Time from dock arrival to usable stock

What this tells you: How long until received inventory is usable?

Plain formula

Total minutes from arrival to usable storage ÷ the number of one chosen unit, such as pallets

What gets counted: Total minutes from arrival to usable storage for qualifying receipts
What it is divided by: Number of qualifying receipts measured in one chosen unit, such as pallets
When timing starts and stops: Use one start point—physical arrival or unload start—and stop when stock is available in a valid location
What is not included: State any waiting time left out of the measure; report held or quarantined stock separately

Worked example

20 pallets took a total of 900 minutes from arrival to usable storage. 900 ÷ 20 = 45 minutes per pallet.

Comparison warning: Choose one unit and one start point. An average can hide a small number of very slow receipts.

Time to put stock away

What this tells you: How long does a putaway move take from start to confirmed storage?

Plain formula

Total elapsed minutes from move start to destination confirmation ÷ completed putaway moves

What gets counted: Total elapsed minutes from the start of each putaway move to destination confirmation
What it is divided by: Completed putaway moves
When timing starts and stops: Task start or load pickup → destination confirmation; choose one start point and keep it
What is not included: Report held stock and unusual equipment moves separately

Worked example

80 pallet moves took a combined 1,600 elapsed minutes. 1,600 ÷ 80 = 20 elapsed minutes per move.

Comparison warning: Do not mix elapsed time with worker-hours. Keep travel, waiting, and active handling available as separate details.

Order lines per worker-hour

What this tells you: How many order lines are completed for each worker-hour spent on this work?

Plain formula

Completed order lines ÷ worker-hours spent on that work

What gets counted: Completed qualifying order lines
What it is divided by: Worker-hours spent on the defined work
When timing starts and stops: One written reporting period
What is not included: Supervisor, refill, support, and correction hours are excluded only when they are reported separately

Worked example

2,400 lines were completed in 30 worker-hours. 2,400 ÷ 30 = 80 lines per worker-hour.

Comparison warning: Rates cannot be compared fairly when one site leaves out refill, support, or problem-handling time.

Orders per worker-hour

What this tells you: How many complete orders are produced for each worker-hour spent on this work?

Plain formula

Completed orders ÷ worker-hours spent on that work

What gets counted: Orders reaching the written completion point
What it is divided by: Worker-hours spent on the defined work
When timing starts and stops: One written shift, day, or week
What is not included: Cancelled or incomplete orders; state how orders with several parcels are counted

Worked example

480 orders were completed in 24 worker-hours. 480 ÷ 24 = 20 orders per worker-hour.

Comparison warning: Order size and mix can dominate this number; always show the distribution of lines per order.

Pick accuracy

What this tells you: How often is the required item and quantity picked correctly?

Plain formula

Correct item-and-quantity pick attempts ÷ all qualifying pick attempts × 100

What gets counted: Correct item-and-quantity pick attempts
What it is divided by: All qualifying pick attempts
When timing starts and stops: At one written checking point
What is not included: Separate errors caused by an already-wrong inventory record

Worked example

9,980 of 10,000 item-and-quantity picks were correct. 9,980 ÷ 10,000 × 100 = 99.8%.

Comparison warning: Accuracy by item, order line, and whole order are different numbers. State which one you use.

Orders meeting every written rule

What this tells you: How often does an order meet every written service rule?

Plain formula

Orders meeting every written service rule ÷ qualifying shipped orders × 100

What gets counted: Orders meeting every written rule
What it is divided by: Qualifying shipped orders
When timing starts and stops: From order release through the written shipment or delivery point
What is not included: State how customer-requested changes and approved special cases are handled

Worked example

935 of 1,000 orders were complete, correct, undamaged, documented, and on time. The rate is 93.5%.

Comparison warning: The result depends completely on the written rules and whether every rule is recorded.

Orders complete on the first check

What this tells you: How often does an order arrive at its first check with every required item and document?

Plain formula

Orders complete at the first check ÷ orders presented for that check × 100

What gets counted: Orders complete at the first check
What it is divided by: All orders reaching that first check
When timing starts and stops: The first combine point or packing check
What is not included: Report approved split shipments separately

Worked example

188 of 200 orders arrived at packing complete on the first try. The rate is 94%.

Comparison warning: An order fixed later was not complete on the first try.

Orders packed per worker-hour

What this tells you: How many orders or parcels can packing finish at a safe, repeatable pace?

Plain formula

Orders or parcels packed ÷ total worker-hours spent packing

What gets counted: Orders or parcels finished to the written standard
What it is divided by: Total worker-hours spent packing
When timing starts and stops: A normal work period that includes ordinary short delays
What is not included: Report unusual packing work separately

Worked example

Three packers closed 360 orders during a four-hour period. 360 ÷ 12 worker-hours = 30 orders per worker-hour.

Comparison warning: A short burst maximum is not a safe, repeatable staffing rate.

Orders ready by the carrier cutoff

What this tells you: Did qualifying orders become packed, labeled, and ready for pickup by the cutoff?

Plain formula

Orders ready for the carrier by cutoff ÷ qualifying orders due by cutoff × 100

What gets counted: Qualifying orders ready for carrier pickup on time
What it is divided by: Qualifying orders due by the cutoff
When timing starts and stops: Use the written order start rule → packed, labeled, and in the correct pickup area
What is not included: State how approved holds and late customer changes are handled

Worked example

760 of 800 due orders were in the correct shipping lane by 5 p.m. The result is 95%.

Comparison warning: Do not call an order on time merely because its label was printed.

Inventory record accuracy

What this tells you: How often do recorded location, item, status, and quantity match physical reality?

Plain formula

Counted records within the written tolerance ÷ all records counted × 100

What gets counted: Item-location records within the written tolerance
What it is divided by: All item-location records counted
When timing starts and stops: At the controlled count event
What is not included: Moves already in progress, handled by one written rule

Worked example

485 of 500 counted item-location records matched item, location, status, and quantity rules. The result is 97%.

Comparison warning: Choose one counting unit and keep location accuracy and quantity accuracy available separately.

Pick-location stockout rate

What this tells you: How often is a pick blocked by an empty pick location even though reserve stock exists?

Plain formula

Pick attempts blocked by an empty pick location while reserve exists ÷ qualifying pick attempts × 100

What gets counted: Pick attempts blocked by an empty pick location while usable reserve stock exists
What it is divided by: All qualifying pick attempts from pick locations
When timing starts and stops: At the attempted pick
What is not included: Report times when the entire building is out of stock separately

Worked example

18 of 6,000 picks were blocked while reserve stock existed. 18 ÷ 6,000 × 100 = 0.3%.

Comparison warning: An empty pick location and a wrong inventory record are different causes.

Problem rate

What this tells you: How often does work leave the normal process?

Plain formula

Tasks leaving the normal process ÷ qualifying tasks × 100

What gets counted: Tasks entering a written problem category
What it is divided by: All qualifying tasks
When timing starts and stops: When the problem is first detected
What is not included: Report planned special workflows separately

Worked example

75 of 5,000 picks left the normal process because of a problem. 75 ÷ 5,000 × 100 = 1.5%.

Comparison warning: If “other” contains more than a small share, the problem categories need to be clearer.

Time to resolve problems

What this tells you: How long does problem work remain unresolved?

Plain formula

For each problem, closure time − detection time; then report the average, middle case, and 90th- or 95th-percentile time

What gets counted: Minutes from detection to closure for each resolved problem
What it is divided by: Resolved problems in the reporting period
When timing starts and stops: Problem detected → written closure point
What is not included: Keep open problems visible with their current age; do not omit them

Worked example

40 problems took a combined 1,200 minutes, so the average was 30 minutes. If 36 were closed within 55 minutes, the 90th-percentile time was 55 minutes.

Comparison warning: Report the average, the middle case, and the time within which 90% or 95% of problems are resolved.

Workload compared with capacity

What this tells you: How much of each step's realistic capacity is required?

Plain formula

Required output per hour ÷ realistic available output per hour × 100

What gets counted: Work required per hour or other stated period
What it is divided by: Demonstrated available capacity in the same period and work mix
When timing starts and stops: The same time interval and type of work for both numbers
What is not included: Best-case maximum unless clearly labeled

Worked example

Packing must handle 180 orders per hour and can safely sustain 200. 180 ÷ 200 × 100 = 90% of available capacity.

Comparison warning: This is demand divided by capacity. State how breaks, downtime, and planned extra capacity are handled.

Paid training hours until a worker can do the task alone

What this tells you: How long until a worker performs safely and accurately without continuous assistance?

Plain formula

Total paid instruction and supervised-practice hours ÷ workers who pass the written skill standard

What gets counted: Paid instruction + supervised practice hours
What it is divided by: Workers reaching the defined competency standard
When timing starts and stops: First instruction → independent sign-off
What is not included: Workers leaving before completion reported separately

Worked example

Five workers needed a combined 60 paid hours before independent sign-off. 60 ÷ 5 = 12 hours per worker.

Comparison warning: Attendance or days employed is not demonstrated competency.

Warehouse cost per completed order

What this tells you: What included warehouse cost is assigned to each completed order?

Plain formula

Included warehouse operating costs ÷ qualifying completed orders

What gets counted: Included worker, supply, equipment, software, building, and correction costs
What it is divided by: Qualifying completed orders
When timing starts and stops: One consistent accounting and operating period
What is not included: Include freight and the cost of holding inventory only when the written scope says so

Worked example

$240,000 of clearly defined monthly warehouse cost ÷ 80,000 completed orders = $3.00 per order.

Comparison warning: This number cannot be compared fairly when the included costs differ.

Make sure everyone calculates the number the same way.

Time from dock arrival to usable stock

Time to put stock away

Order lines per worker-hour

Orders per worker-hour

Share of time spent walking and searching

Pick accuracy

Orders meeting every written rule

Orders complete on the first check

Orders packed per worker-hour

Orders ready by the carrier cutoff

Inventory record accuracy

Pick-location stockout rate

Problem rate

Time to resolve problems

Workload compared with capacity

Paid training hours until a worker can do the task alone

Warehouse cost per completed order