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HomeWarehousingKey Performance Metrics for Effective Warehousing and Customer Service

Key Performance Metrics for Effective Warehousing and Customer Service

Knowing the right warehouse metrics to track to improve profitability and operations is keys to the success of your organization. Unfortunately, successful metric tracking benchmarking procedures, including identifying areas that need to be assessed, monitored, researched, compared and acted upon, are essential to setting up a metric system. In addition, your organization needs to know what factors impact metrics and which metrics can have the greatest impact.

On-Time Shipment to Customer

It must accurately and efficiently distribute goods that are coming in and out of the warehouse. In other words, the correct product must be placed on the correct transportation method at the appropriate time. In order to complete this task, you must monitor late shipping departures to the warehouse and early completion of freight loading time. The percentage of items ordered by customers that arrive on, or before, the requested ship date is the on-time shipping rate.

Happy customers are more likely to return and tell others of your prompt services. The rate is calculated by dividing the number of on-time items by total items, then multiplying the result by 100 for a percentage.

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Ben Wee Pang Aik, DLSM
Ben Wee has several years of experiences in Warehousing and Logistics sector, specifically in the household and consumer electronics products. He is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Ben completed the course on Diploma in Logistics and Supply Management (DLSM) in March 2018 at SIPMM Institute.

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