# Warehouse KPI examples: 24 KPIs you need to improve fulfilment Learn how to effectively track warehouse KPIs to improve processes and ship orders efficiently. Canonical URL: https://starshipit.com/blog-content/warehouse-kpi **Summary:**_ Warehouse KPIs measure whether fulfilment is accurate, efficient and ready to scale. Track metrics such as order accuracy, pick rate, inventory accuracy, labour productivity and dispatch time so warehouse teams can spot bottlenecks before they affect customers during daily dispatch._ **A robust shipping fulfilment process** is about more than just what happens when a package leaves your warehouse. **By taking control and working efficiently **in the areas you and your staff can influence, your business can benefit from **the moment an order is placed **to when it's shipped off with a trusted courier. For retailers, **fast and accurate shipping** isn’t just about operations—**it’s a competitive advantage** that **builds trust and drives repeat business**. But how do you know where there’s room for improvement? **By identifying and **[**monitoring warehouse KPIs**](/shipping-reporting)** (key performance indicators)**, you can start to paint a picture of what you're doing right and where there’s room for optimisation. **Tracking KPIs** can help you **increase team efficiency, reduce costs and improve order accuracy**—all key to **keeping customers happy**. Miss this, and you **risk losing ground to global giants** like Amazon, Temu and others who are setting the bar high with super-fast delivery. Let’s dive into **common warehouse KPI examples** and look at how becoming a strategic, data-driven warehouse can help you outpace rivals by delivering orders faster, cheaper, and more reliably. ### Table of contents - [**What are KPIs in a warehouse context?**](#warehouse-context) - [**The benefits of warehouse management KPIs for your business**](#benefits) - **[Warehouse KPI examples](#kpi-examples)**[ – core warehouse KPI metrics](#kpi-examples) - [**KPI examples for warehouse employees**](#warehouse-employees) - [**Warehouse Supervisor or Warehouse Manager KPI examples**](#supervisor-manager-kpis) - [**KPIs for Warehouse Pickers**](#pickers) - [**Using a warehouse KPI dashboard with automation**](#kpi-dashboard) - [**Export your data with a warehouse KPI Excel template**](#excel-template) - **[Next steps: ](#next-steps)**[using warehouse KPIs to drive efficiency](#next-steps) ### What are KPIs in a warehouse context? **A warehouse KPI is any measurable metric** that can be used to **track efficiency and performance** in its day-to-day functions. This could be anything from **total orders shipped** to **inventory turnover**, but we’ll get into the full list later on. For a warehouse serving an eCommerce business, **meeting or missing KPIs** will have an effect on the team’s **ability to fill orders**. Inventory management is a good example – if **inventory isn’t restocked quickly or accurately**, it could affect **same-day delivery **orders or result in **customers getting the wrong items **shipped to them. The root cause? Often, it’s not just **stock levels**, but **poor visibility or slow receiving processes** – issues your KPIs can help to pinpoint. ### The benefits of warehouse management KPIs for your business Let’s take a look at some of the **benefits** paying attention to [warehouse management KPIs](https://www.unleashedsoftware.com/blog/the-12-warehouse-kpis-you-should-be-tracking-right-now/) can provide your business. Unlike generic best practices, tracking the** right KPIs will diagnose specific bottlenecks,** like excessive picker travel time or overstocked shelves, and help you **address these root cause issues.** Whether you’re looking to **save money or get your team working together better**, a strategic **focus on metrics is essential** to find areas for improvement. Measuring warehouse KPI metrics can – through the process of addressing the underlying issues – lead to **benefits such as:** ### Increased efficiency **Reducing wasted time** in the picking and fulfilment process gets orders **shipped quicker**. ### Better inventory control Real-time data and tracking of your products can help to **avoid overstocking or stockouts** that **disrupt the fulfilment process.** ### Improved order accuracy Efficiency and accuracy at each stage of the process **reduces the rate of returns** due to error and helps **build customer trust** in your business. ### Optimised workforce performance Clear metrics can help you** identify bottlenecks** in picker routes or packing workflows and determine the **most** **efficient way** to reallocate team efforts. ### Warehouse KPI examples – core warehouse KPI metrics Warehouse KPIs need to be **clear and measurable benchmarks**. By providing clarity to your employees about these metrics, **they can understand why they’re being measured** and may even have their own suggestions for improvement based on their experience. It’s also **essential to choose warehouse KPIs that are measurable **so you can compare new data with old and see if any changes have a noticeable impact. **Choose KPIs based on your warehouse’s unique challenges** – speed for same-day delivery, cost for tight margins, or accuracy for high-value items. Think about what metrics would be best for improving order accuracy, managing your inventory or enhancing team productivity. **The right data will help you find inefficiencies** and **improve your workflow** to help you meet these goals. **Starshipit tip:** If warehouse KPIs feel overwhelming to track, consider using a tool like Starshipit that **automates the process for you.** ### KPI examples for warehouse employees While it’s possible to turn almost any task into a trackable metric, there are some shipping KPIs we think every warehouse should be tracking. These are general KPIs that can **help you understand your fulfilment efficiency and overall team performance.** Focus on these over others, like vanity metrics (e.g. total packages moved), to drive real outcomes. **General warehouse employee KPIs include:** 1. _Order picking accuracy_ 1. _Orders picked per hour_ 1. _Average fulfilment time_ 1. _Rate of return due to picking errors_ 1. _Warehouse throughput_ 1. _Order lead time_ 1. _Carrying cost of inventory_ 1. _Inventory turnover rate_ 1. _Stock-to-sales ratio_ 1. _Lost sales due to out-of-stock items_ ### 1. Order picking accuracy This tracks the **percentage of orders picked correctly**, a direct measure of **quality over speed.** High accuracy **reduces costly returns**, while low accuracy signals issues like **unclear labelling or rushed workflows.** Focus on this metric to improve customer trust. ### 2. Orders picked per hour This measures how many items **a picker handles hourly,** balancing speed with practicality. It’s not just about pushing staff harder – pair it with travel time data to see if layout changes could boost output without burnout. ### 3. Average fulfilment time This tracks the **total time from order receipt to dispatch,** spotlighting delays in picking and packing. **Reducing this time can** unlock faster shipping options but first weigh up the cost – rushing might spike errors. Aim for a sweet spot based on your delivery promises. ### 4. Rate of return due to picking errors This reveals **how often the wrong items reach customers,** tying directly to accuracy. A high rate might justify slower picking for precision, while a low rate lets you push speed. ### 5. Warehouse throughput **This counts items processed daily or weekly,** showing overall capacity. It’s **useful for scaling,** but don’t chase it alone. High throughput with sloppy accuracy wastes effort. Check it against order lead time for more context. ### 6. Order lead time This spans **order placement to customer delivery,** including shipping. Shorter lead times boost satisfaction, but warehouse control ends at dispatch – carrier delays can skew it. Focus here if speed is your brand’s edge, and coordinate with couriers. ### 7. Carrying cost of inventory This **tracks storage costs for unsold stock,** like rent or spoilage. Lowering it might mean tighter inventory cycles but overdo it and stockouts loom. Use this **to decide if holding extra stock beats losing sales.** ### 8. Inventory turnover rate This measures **how often stock refreshes,** hinting at demand alignment. High turnover cuts carrying costs but risks shortages; low turnover ties up cash. ### 9. Stock-to-sales ratio This compares **inventory to sales volume, **flagging overstock or shortages. A balanced ratio **avoids lost sales** without bloating storage costs. ### 10. Lost sales due to out-of-stock items This **estimates revenue lost when stock runs dry,** a wake-up call for inventory planning. Reducing it might mean higher carrying costs – this is decided based on profit margins. It’s a strategic lever for growth, not just a number. ### Warehouse Supervisor or Warehouse Manager KPI examples Some warehouse KPIs are better suited to managers and senior staff as they tie to **broader business goals** like **cost control** and **customer retention.** If you’re a warehouse manager, you will need to manage KPIs relating to employee performance and overall company efficiency, which guide strategic decisions. **Here are the critical warehouse KPIs for supervisors and managers:** 1. _Inventory record accuracy_ 1. _Labor cost per order_ 1. _Dock-to-stock time_ 1. _Order cycle time_ 1. _Receiving efficiency_ 1. _Backorder rate_ 1. _Perfect order rate_ 1. _Space utilisation rate_ 1. _Storage cost per unit_ 1. _Warehouse capacity utilisation_ ### 1. Inventory record accuracy A critical warehouse KPI that **measures how accurately recorded inventory matches actual physical stock.** High accuracy **prevents stockouts or overordering;** low rates point to unreliable counts. ### 2. Labor cost per order This tracks labour expenses per order, **revealing staffing efficiency. **High costs **might signal overstaffing** or **slow processes,** while low costs could hide quality issues. Balance it with picking accuracy for real insight. ### 3. Dock-to-stock time This **measures how fast incoming goods hit warehouse shelves,** critical for **avoiding back orders.** A slow time might justify more staff at receiving, but automation could provide a cheaper alternative. ### 4. Order cycle time This **tracks processing speed from order entry to dispatch,** a core efficiency metric. Shorter cycles impress customers but **rushing risks errors** – data should set the pace. ### 5. Receiving efficiency This **counts items processed per worker** at intake, testing staff productivity. High efficiency **cuts labour costs,** but low numbers might mean understaffing or bottlenecks. Pair it with dock-to-stock to spot the real issue. ### 6. Backorder rate This **tracks orders delayed by stockouts,** a red flag for planning. A high rate might push you to overstock, but that could hike carrying costs. ### 7. Perfect order rate This **measures orders delivered flawlessly** – picked right, packed well, shipped on time. It’s the gold standard for customer satisfaction. ### 8. Space utilisation rate This **shows how much of your warehouse is actively used,** guiding expansion decisions. High rates save rent but can clog workflows; **low rates waste money.** Optimise with throughput data – **don’t just fill space for the sake of it. ** ### 9. Storage cost per unit This **calculates the cost to store each item,** from rent to utilities. Lowering it might mean faster turnover, but **stockouts hurt sales.** Use this to weigh holding costs vs. availability. ### 10. Warehouse capacity utilisation This **assesses total space efficiency,** beyond just storage. **High utilisation maximises your footprint,** but **overcrowding slows pickers.** Balance it with picker travel time. ### KPIs for Warehouse Pickers When managing your picking team, there are key metrics to track **picker efficiency and accuracy,** balancing **speed with quality.** These can also be shared with your pickers to help them understand how they are performing and what the expectations are for their role. ** Essential warehouse KPIs for pickers include:** 1. **Pick rate per hour** – Number of items picked in an hour. 1. **Picking accuracy rate** – Percentage of orders picked correctly. 1. **Travel time per pick** – Time spent walking between storage locations. 1. **Cost per picked order** – The labour [cost of picking each order](/shipping-costs). ### Using a warehouse KPI dashboard with automation Being aware of all the different warehouse KPI examples is one thing, but how do you keep track of all this data and **ensure it’s actually helpful** rather than overwhelming? A warehouse KPI dashboard** is a useful tool **that will help you **track, visualise and monitor **these metrics in real time. The advantage of using a dashboard is that it **centralises your data** across all the warehouse KPIs you’re monitoring and means **you don’t have to jump between platforms** to compare **the number of backorders** with your inventory accuracy rate. It can also become **a one-stop shop for measuring employee efficiency** alongside fulfilment speed and inventory levels to give a detailed overview of how your warehouse supports broader goals like customer acquisition. To really take this to the next level, [automation can bring even more efficiency](/fulfilment-automation) into the reporting process and **reduce the amount of time you spend combing through data.** Automation helps by: - **Providing real-time insights into warehouse efficiency – **instead of manually pulling a report, an automated dashboard can display live KPIs. - **Enabling businesses to make data-driven decisions –** collected data can help you target inefficiencies and make process changes that will have a tangible impact. **Starshipit tip:** Instead of manually pulling reports, Starshipit’s dashboard provides real-time visibility into key warehouse KPIs like order accuracy, shipping times, and carrier performance – helping you make faster, more precise decisions. ### Export your data with a warehouse KPI Excel template Sharing warehouse KPI metrics can sometimes be difficult depending on who has access to the dashboard and who is familiar with the data you’re collecting. Being able to **communicate trends** with employees or senior leadership is important in situations like **giving performance reviews, explaining a change in process to the pickers or making a case for investment** in your warehouse operations that needs approval from leadership. By exporting data to a **warehouse KPI excel template**, it can be easier to analyse the data you’ve collected and review the performance metrics that you’re focused on. **Some key benefits are:** ### Track trends in fulfilment efficiency Are there times in the year when **efficiency drops**? Are you seeing new processes impact fulfilment speed? **Monitoring trends over time **will help you understand how things develop. ### Monitor employee performance over time Who are your star performers? Where are the bottlenecks in their picking routine? **Review order accuracy** stats and the **labour cost **of each order to understand how efficient your team is. ### Identify areas of improvement with historical data What was your order accuracy rate two years ago? What about your backorder rate in the lead up to last Christmas? Real-time data is just part of the puzzle, as **reviewing previous trends can help **you realise what changes have helped your warehouse operate efficiently, and opportunities for more improvement. **Starshipit tip:** Need a quick warehouse KPI report? With Starshipit’s reporting and analytics tools, you can export key performance data in seconds. This makes it easy to analyse trends, track fulfilment efficiency, and improve operations. ### Next steps: using warehouse KPIs to drive efficiency To make the most of your warehouse KPIs, you want to **ensure you have the right tools **that not only help you collect data, but **analyse it regularly** as well. By regularly reviewing your warehouse KPIs against your goals, you can **continuously improve** your processes for **greater efficiency, effective cost control and fast (but still accurate!) fulfilment speed.** By the right tools, we of course mean a warehouse KPI dashboard that can **show you essential metrics** in real time so you can **stay on top of the numbers that matter most.** With smart use of automation features, plus the ability to export data to warehouse KPI excel templates, you can **track past and future trends** to watch how these metrics evolve over time and identify trends that need your attention. To get a glimpse of what this could look like in your warehouse, [try a 30-day free trial](https://app.starshipit.com/Dashboard/SignUp.aspx) of Starshipit and [Starshipit Warehouse Management](https://starshipit.com/warehouse-management) and see how tracking warehouse KPIs can turn operational wins into a competitive edge. ## Ready to start automating?