KPI or Key Performance Indicator

How do you measure your warehouse performance's? You should determine and identify the goal and then maintain it and finally measure it.

We can use KPI or Key performance indicator.

KPIs need to be linked with strategic or operational objective and therefore should include labor, operations, service , finance and also quality.

Special in the warehouse, we can list some scorecard:

• Completed ordered (how many ordered can be completed without no back ordered or delayed order)
• CPU or cost per unit
• Inventory accuracy (will be based on cycle count and inventory stock)
• Waste (items adjusted in and out during cycle count and damaged)
• Safety (Should have recordable accident - follow OSHA rate)
• Productivity

But, which one is to be 1st, is depends on your company and what are they doing now.
Some people said that inventory accuracy is number one. Why?  because your reputation is depends on it.We can't complete order if is out of stock without recordable history or don't know how much is.