FMi Logistics Calgary Exceptional. Logistics. Delivered

Warehousing Vancouver | Measuring KPI’s

Key performance indicators allow a business to assign measurable values to key functions in the business. This is especially critical for back-office functions, such as warehousing. Common warehouse KPIs include the number of returns processed, inventory turnover, employee turnover, and accuracy in both inventory and payables. Warehouse rental Vancouver solutions are important to your supply chain, and as such, the warehouse function should be measured to ensure you are achieving value.

Since it’s often the very last link in the chain between you and your customers. Therefore, its role in customer satisfaction can’t be overstated. What are your competitors measuring?

On-time delivery, as the name suggests, is the number of deliveries that are on time. A higher on-time delivery shows that your Vancouver warehouse lease is beneficial to your bottom line. In other words, it is reliable and does the planning of transportation well.

Your order fill rate is the rate per day of fulfilling orders. A higher rate shows that the warehouse is fast and efficient in completing orders. Order accuracy is the number of orders which are completed with no mistakes; things are packed and shipped out correctly. A higher number of accurate orders show how meticulous the warehouse staffs are. And your location accuracy refers to the storing of goods in the correct location so that it is easy to find them and pickers can do their job more efficiently.

Order cycle time involves the total elapse time to move a unit of work from the beginning to the end of a physical process. It includes process time and delay time during which a unit of work is spent waiting to take the next action. Change orders obviously refers to orders which are changed. Changing orders incurs cost and thus it is best to not have any changed orders.

Your inventory turnover ratio calculates how many goods go out compared to incoming goods, it shows how fast inventory moves and the higher the better. Inventory accuracy means that the physical count matches inventory records. Accurate inventory records show that your Vancouver warehouse rent is returning dividends. It’s vital that your warehouse has good storage systems and keeps records meticulously.

Damaged or lost inventory is the number of damaged, stolen, or lost goods in a lot. Naturally, it is more desirable if this number is lower as it shows that the warehouse has proper equipment and procedures to keep inventory safe and has good security.

Certainly, these suggested KPI’s aren’t the only ones. Since the warehouse is often the busiest area of a thriving operation, it makes sense to measure it in a meaningful way. Hard metrics make it easier for logistics and Vancouver warehousing management to demonstrate the tremendous value to any organization.

More FMi Blog Posts

FMi Logistics Calgary Exceptional. Logistics. Delivered

Canadian International Freight Forwarders

As with all aspects of international trade, it’s prudent to do your research before choosing a Canadian international freight forwarder to look after the transportation of your goods.
FMi Logistics Calgary Exceptional. Logistics. Delivered.

It is time for manufacturers to be closer to retail customers

Retailers continually push consumer goods manufacturers for better fill rates and quick turnarounds on product delivery. Product storage and warehousing presents numerous problems that must be overcome by Canadian consumer goods companies.
FMi Logistics Calgary Exceptional. Logistics. Delivered

Third Party Logistics Warehousing Technology Makes The Impossible Easier

Technology improvements are continuously changing how we work in warehouses. The largest significant improvement has taken place in the management of goods.
FMi Logistics Calgary Exceptional. Logistics. Delivered

A Strategic Merger Providing A Full Suite Of International Freight Management Services

FMi Logistics Incorporated, a Western Canadian based 3PL with core disciplines in Commercial Warehousing & North American Freight Management has acquired GSA International Forwarders – a Calgary-based International Freight Forwarder specializing in Ocean, Air and Ground transportation.
FMi Logistics Calgary Exceptional. Logistics. Delivered.

How Does Pick And Pack Distribution Benefit My Business?

Pick and pack provides a cost-effective, flexible, secure and efficient way of catering for the individual fulfillment needs of your businesses and your customers.
FMi Logistics Calgary Exceptional. Logistics. Delivered

Steam Ship or Diesel Ship?

Have you wondered why we still are using use the term “steamship” in the freight forwarding world today? Do your containers move across the oceans of todays world on steam-powered ships?
FMi Logistics Calgary Exceptional. Logistics. Delivered

Are Fuel Surcharges Fair?

Business and industries today all seem to be introducing more taxes, tariffs, and surcharges. One of the more controversial and misunderstood of these tariffs, applicable to the transportation industry, fall under the category of “fuel surcharges”.
FMi Logistics Calgary Exceptional. Logistics. Delivered.

5 Steps for Successful Transportation of Construction, Building, and Lumber Materials

Shipping and handling of lumber and construction materials requires in-depth planning and logistics expertise.
FMi Logistics Calgary Exceptional. Logistics. Delivered

Truck Freight Brokers Offer Flexibility

Typically, a trucking freight broker acts as the liaison between a trucking company and an individual or company that needs shipping services.
Get An Estimate

REQUEST A QUOTE NOW