Inventory, warehouse & supply chain
Warehouse KPIs: the metrics that show whether your warehouse works
Warehouse KPIs with formulas: inventory accuracy, order fill rate, OTIF, dock-to-stock time, picking accuracy, cost per order and space utilization.
Warehouse KPIs tell you whether your warehouse is accurate, fast and efficient. Without them, problems only show up as customer complaints, stock-outs or a bad year-end count. The KPIs below are the ones most useful for Philippine distributors, manufacturers and retail chains, with formulas you can compute from your warehouse system.
Accuracy KPIs
| KPI | Formula | Why it matters |
|---|---|---|
| Inventory record accuracy | Items counted with no variance beyond tolerance ÷ items counted | Trust in system stock |
| Picking accuracy | Order lines picked correctly ÷ total lines picked | Customer satisfaction, returns |
| Receiving accuracy | Receipts matching later counts ÷ total receipts | Correct payables and stock |
| Shipping accuracy | Shipments without errors ÷ total shipments | Delivery disputes |
Speed KPIs
| KPI | Formula |
|---|---|
| Dock-to-stock time | Time from goods arrival to available in inventory |
| Order cycle time | Time from order release to dispatch |
| On-time dispatch | Orders dispatched by the planned time ÷ total orders |
| Transfer lead time | Days from dispatch to receiving at branch |
Service KPIs
| KPI | Formula |
|---|---|
| Order fill rate | Order lines shipped complete ÷ order lines ordered |
| OTIF | Orders delivered on time and in full ÷ total orders |
| Backorder rate | Orders with backordered items ÷ total orders |
Efficiency and cost KPIs
| KPI | Formula |
|---|---|
| Cost per order shipped | Total warehouse cost ÷ orders shipped |
| Lines picked per labor hour | Lines picked ÷ picking labor hours |
| Space utilization | Occupied storage capacity ÷ total storage capacity |
| Inventory turnover | Cost of goods sold ÷ average inventory |
| Slow-moving stock share | Value of items with no movement in a set period ÷ total inventory value |
Choosing your scorecard
Do not track everything. A practical warehouse scorecard has five to eight KPIs covering accuracy, speed, service and cost. For example:
- Inventory record accuracy
- Picking accuracy
- Dock-to-stock time
- Order fill rate
- OTIF
- Cost per order shipped
- Slow-moving stock share
Set targets, review them weekly at the warehouse and monthly with management. Each KPI should have an owner who explains changes and leads improvement.
Getting reliable KPI data
KPIs are only as good as the transactions behind them. Warehouse KPIs depend on:
- Receiving recorded on arrival (receiving process)
- Picks and dispatches confirmed in the system
- Transfers received with confirmation (stock transfer process)
- Cycle count results recorded (cycle counting)
When these steps happen on paper and are encoded later, timestamps are meaningless and accuracy KPIs are estimates.
From KPIs to improvement
When a KPI falls short, treat it as a problem to solve, not a number to explain away. Use a simple method such as PDCA or DMAIC to find root causes and test fixes. See PDCA and DMAIC.
Where Cirquolus fits
Cirquolus Warehousing & logistics records branch inventory, transfers, deliveries, supplier returns and valuation. Business Compass KPI turns warehouse KPIs into scorecards with owners, targets and readings, connected to operational reviews and improvement projects.
Frequently asked questions
What are the most important warehouse KPIs?
Inventory record accuracy, picking accuracy, order fill rate, OTIF, dock-to-stock time and cost per order are a strong starting set.
How is inventory accuracy calculated?
Divide the number of items counted with no variance beyond tolerance by the total number of items counted.
What is dock-to-stock time?
The time between goods arriving at the warehouse and being available in inventory for use or sale.
How often should warehouse KPIs be reviewed?
Weekly by the warehouse team and monthly with management, with owners explaining trends and actions.
Bring this workflow to a Cirquolus demo.
Show us your current process, companies and branches. We will map it to the modules you need and propose a realistic rollout.