Guides · KPI
Warehouse KPIs: The 10 Most Important Metrics with Formulas
Running a warehouse takes a few – but the right – metrics. Here are the ten KPIs I use most often in practice, each with its formula, meaning and a tip from day-to-day warehouse work.
01On-time delivery rate
On-time orders ÷ all delivered orders × 100
Shows how reliably promised delivery dates are met. For customers often the single most important number.
✓ Measure against the promised date, not the requested date – otherwise you mix warehouse and sales problems.
02Perfect order rate
Error-free orders (on time, complete, undamaged, correctly documented) ÷ all orders
The strictest quality metric: an order only counts if everything is right.
✓ Record the error type as well – then you see which cause lowers the rate most.
03Picking accuracy
Correctly picked lines ÷ all picked lines
Measures the error rate in picking. Every error costs returns, re-deliveries and trust.
✓ Values well above 99 % are common in well-organized warehouses. Below that, check bin labelling and scanner use.
04Picking productivity
Picked lines ÷ labor hours
Productivity in picking – the basis for staff planning and cost comparison.
✓ Only compare similar order profiles: piece picking and pallet picking have completely different rates.
05Inventory turnover
Cost of goods used (year) ÷ average inventory
How often stock is renewed per year. Higher turnover ties up less capital.
✓ Calculate turnover per item group (ABC) – a single total hides slow movers.
06Days of supply
Current stock ÷ average daily consumption
How many days stock lasts at normal consumption.
✓ Combine days of supply with replenishment lead time to spot shortages before they happen.
07Inventory accuracy
Locations without discrepancy ÷ counted locations
How well system stock matches physical stock.
✓ Regular cycle counting keeps accuracy high without stopping the warehouse.
08Order cycle time
Shipping time − order receipt time
How quickly an order leaves the warehouse.
✓ Split the time into waiting, picking and packing – usually waiting is the largest share.
09Storage utilization
Occupied locations ÷ available locations
Shows how much capacity is in use.
✓ Above roughly 85–90 % utilization, performance often drops noticeably as relocations and search times increase.
10Cost per order
Warehouse costs (staff, space, material) ÷ number of orders
Links performance and cost – ideal for pricing talks and make-or-buy decisions.
✓ Use the same cost base every month, otherwise values are not comparable.
Which KPIs to start with?
Start with three or four KPIs you can measure reliably – usually on-time delivery, picking accuracy, picking productivity and cost per order. Only once these numbers are stable every month is it worth adding more.
Free templates for your warehouse KPIs
On-time delivery, picking accuracy and delay causes are calculated automatically by the Warehouse Intelligence template. For daily, weekly and monthly reports with target and prior-year comparison, use the Executive Reporting Center.