Looking for warehouse space for rent near you
How effective are your logistics operations?
Renting a warehouse is one thing while using the space to the optimum is a different concept.
Keeping a close watch on the warehouse operations is crucial to knowing the performance regarding receiving goods, inventory management, and fulfilment.
Tracking KPIs will not only help you find the barriers and pain points of the space but also help you plan out the warehouse operations in the most optimum manner.
Hence, this article provides all the information on KPIs essential to tracking a warehouse’s logistics performance.
You made a wise decision of renting a warehouse in Gujarat, and now it’s time to optimize it.
Here is the list of some warehouse management KPIs for leasing a warehouse to track warehouse operations optimally.
Receiving the inventory is one of the most vital yet most neglected parts of a warehouse management system. This is where the journey of an inventory begins. If you make a simple mistake here, you have to face consequences throughout the logistic operation. It is essential to keep track of the amount of the product you received.
Receiving KPIs help you to keep track of all the inventories you receive, whether a fresh piece or just a returned product. It also ensures that you stock the right product and when to reorder.
Let’s make optimum use of warehouse space by tracking receiving KPIs:
This KPI suggests how skillfully your staff works in this area. A decrease in receiving efficiency suggests that your employees or machines need an upgrade. You can solve it by arranging staff training sessions or installing new equipment.
This KPI indicates how much time you take to count, sort, and store the inventory that enters your warehouse. A longer receiving cycle time hints that you need to enhance your work's approach to make it quicker and more efficient.
The cost of receiving per line refers to the total amount of money spent on receiving and handling the inventory from the vendors. The lower the cost of receiving per line, the better your warehouse performance.
This KPI analyzes how efficiently dock doors are used. This helps you maintain the inventory carrying cost. For example- your warehouse consists of two doors, one of which is unused; this suggests that you are using more space than you need.
Are you looking for a warehouse for rent in Gujarat? Prime Associates have 100+ warehouses across Gujarat. Book a free consultation to know more.
Inventory management is the heart of any logistic operation. This metric keeps track of how much inventory you have in your hand and which to order. Of course, you don't want to stock up on products that are not in demand.
Following inventory KPI is a kickstart to optimizing your warehouse space, but it is not feasible to do it all physically. But with a bit of help from an advanced Warehouse Management System or Inventory Management System Software, you can carry out all this process more quickly and accurately.
Inventory KPI helps you to know at what pace your inventory is moving out of the door and what steps you should take to maintain it further.
Below are some essential inventory KPIs to measure your warehouse space and use it effectively.
What if you rent a warehouse that does not provide adequate amenities or lease an industrial shed that isn't fully utilized for logistics purposes?
To avoid such missteps while leasing the property, it is crucial to be clear about what kind of leasing space you might require based on the company operations and specific requirements.
This performance indicator helps to keep track of how much inventory you have sold within a month. It is a comparison between inventory at the beginning and the end of the month. The more the number indicates better sales.
This KPI helps to keep a record of sales, whether they are dropping or increasing over time.
Inventory carrying cost KPI indicates how much you spend in buying, stocking, and handling the inventory. It includes insurance costs, renting warehouse space, security, amenities, and many more.
This KPI is essential to know about all your inventory expenses. It is essential to eliminate the dead stocks and obsolete ones to reduce their carrying costs.
With Inventory Accuracy KPI, find out how well you manage your warehouse. It compares the tracked inventory with the help of the Inventory Management System and physical counts of the inventory.
This KPI is somewhat related to Inventory Accuracy. Inventory Shrinkage shows its absence from the shelves. In other words, it is recorded but is not physically present on the shelves.
There are many reasons like theft, inventory damage, and sometimes even vendor fraud. Try to keep this value closer to zero.
Inventory turnover rate refers to the frequency the inventory is sold and returned in a specific period. The main goal of this KPI is to know which inventory is moving faster than the wind and which inventory is taking an eternity to move out.
From this KPI, you can also know how your business is performing. Lowe rate suggests that you need to stop piling up your inventory space and remove obsolete and dead stokes, to make a place for fresh inventory.
Put-away includes placing the received inventory at its accurate place in a minimal amount of time. This step is important for further seamless logistic operations. If not done correctly, your staff can spend hours finding an inventory for shipping.
Here are some of the put-away KPIs to keep an eye out for in your put-away process.
Put-away Cycle time indicates how much time it takes to put-away inventory. Lower put-away cycle time means your warehouse is working at its best, while higher rates of put-away cycle suggest that you need to check your current way of working and make new advancements. Reduce the put-away cycle time by repositioning certain inventories or training your employees.
This indicator shows your staff productivity in putting away all the new inventories at their assigned place in one go. It should be closer to 100%. This step will help your staff in later stages, as they can quickly find the inventory while fulfilling orders.
Put-away cost per line shows the total investment you have done in put-away. This cost includes labour charges, equipment costs, and handling costs. The higher value shows your warehouse is working inefficiently.
Monitoring this indicator will give you an idea about how much workforce and equipment are being utilised during the entire put-away process. It will help to let you know if you want to reduce your workforce and equipment or not because extra workers and unused equipment can be burdensome.
Here comes the crucial part of warehousing, picking and packing the inventories to get them ready for shipping. It is one of the most complex activities.
It is essential to pick up the order in minimum time, so the customer gets their delivery on time and increases customer satisfaction. Following are some essential picking and packing KPIs to make the right fulfilments.
The picking efficiency suggests the number of orders picked per hour. It can give you an idea of how much growth you have done over time.
This cycle time suggests how long it will take to pick the product from the shelf and pack it for shipping- the lower the cycle time, the better the results.
The total cost is included in picking and packing. It includes all the costs from labour for labelling and picking, packaging, transportation and safety equipment and many others.
Knowing how accurately your warehouse is working is one of the most essential factors of WMS. Picking accuracy shows how many orders are picked and packed without mistakes. You need to keep these rates high and keep aiming to be higher.
It is essential to know whether your warehouse is working efficiently or not. From receiving an order to safely delivering it to the customer's door, Distribution Indicators help you to look out how well your warehouse carries out the entire process.
The following are some performance indicators to track the warehouse performance.
Monitoring order lead time will let you know how long it takes to fulfil an order placed by a customer. Reducing the order lead time increases the customer satisfaction level. Make sure the product you ship reaches the customer in perfect condition; it would be a cherry on the top.
It is also essential to monitor the return rates. Not only the numbers of the products but also the reasons. There could be many reasons for the returns like product damage, the product doesn’t match its description, late arrivals, and many more.
It will help to know insights into product quality. But it is necessary to maintain return rates as low as possible.
On-time shipping rate refers to how fast you ship the order and the last-mile delivery (from the fulfilment centre to the customer). Shipping on time is not in our hands, as it can get delayed due to weather conditions, motor or vehicle troubles and many others.
But it is important to maintain a high-on shipping rate, to retain customers. This KPI gives an overview of how well your distribution chain is working.
Total order cycle time indicates the time required for your product to be shipped. It includes all the steps from receiving orders to picking, packing and shipping at the doorstep of the customer.
The lower the total order cycle time, the more customer satisfaction. It can also increase repeat customer rates.
Looking for a way to stay close to your customers' reach? Rent a warehouse from Prime Associates at the most favourable locations in Gujarat.
Warehouses are places that are full of heavy equipment, machinery and inventory. A simple mistake can lead to a big accident, costing the victim a long trip to the hospital.
It is important to follow all the safety rules and regulations while working, but the accidents aren’t planned, right? They just happen.
Measuring these KPIs won't gain you profits or efficiency in your work, but it will help you create a healthier working environment. Here are a few KPIs that you should follow.
As the name suggests, this performance indicator shows how many accidents take place in your warehouse annually. Try to maintain this rate at zero or the lowest. Higher rates suggest that there is some serious issue at your workplace.
You can prevent accidents by giving proper safety training to the employees or regular servicing of the equipment.
This KPI indicates the time difference between two accidents. Try to keep this value high.
A higher value shows the infrequency of the accidents.
This KPI refers to how much your work is affected due to the accident. Plus, you need to find replacements, work overtime, and overall costs.
In Warehouse Management, KPIs- Key Performance Indicators, are metrics used to measure the efficiency and performance of the warehouse. From the initial stage of receiving the inventory to the final order fulfilment stage, KPIs are applicable to every process carried out in the warehouse.
By tracking warehouse KPIs, you can easily measure the warehouse performance and understand the efficiency of the operations while crossing the potential hurdles and risks and finding new options for optimizing the warehouse logistics activities.
When a business needs a warehouse, the first question that arises in its mind is- where can I find a warehouse for rent? The journey doesn't end in leasing the best warehouse at a favourable location. Instead, tracking these essential KPIs is imperative to ensure your logistics business's effective functioning.
Since numerous activities take place in a warehouse, industries use these standard metrics for the following areas of logistics services:
Such warehouse KPIs are relevant to almost every warehouse management. Some KPIs may work, while some may not. Thus, choose the KPIs that seem appropriate to your current business goals.
From the KPIs mentioned and briefly explained in the above sections of the article, pick the metrics that align with your business operations. With such a KPI-driven approach, optimize your warehouse activities to track your business’s success.
As KPIs highlight the problem areas- which areas are underproductive or which areas need to be worked on to become more profitable, it is easier to find the critical issues regarding warehouse management.
By tracking KPIs, solve the inefficiencies with data-based action. It becomes simpler to understand whether the warehouse activities are on the right track and whether the systems used for managing the space are working effectively or not.
For effective warehouse management and to ensure smooth running, KPIs are an integral part of the Warehouse Management System.
Here are some of the reasons why tracking warehouse KPIs is beneficial for any business.
With warehouse KPIs, one can improve warehouse operations by finding and eliminating the weakness found by implementing the KPIs.
By tracking the warehouse performance, you can identify what needs improvement, make necessary corrections, making sure your warehouse is operating at its optimum.
Nowadays, with advanced technology, one can reduce the hours-consuming tasks with automated machines, saving hundreds of human hours.
Thus, utilize warehouse KPIs as a checklist to improve your logistics operations.
A safe and secure working environment increases the efficiency of the business as the workers are assured of their safety while working.
By tracking the safety KPIs, you can decide whether or not your warehouse needs more security and safety measures for the employees.
A company can boost productivity by monitoring its safety KPIs.
With the batch, lot, and serial number, one can find the location of the goods in the warehouse. The warehouse management system(WMS) ensures the goods are fully traceable- from the day of their arrival to storage and order fulfilment, every area of inventory management can be effectively taken care of with inventory KPIs.
As the products are easy to trace, it becomes easy to avoid any redundancy and makes the inventory allocation accurate.
As the tracking KPIs enable the maximum usage of the warehouse space, every inch of the warehouse is used effectively. With the space and floor plan analysis, you can determine the best way to use the space while reducing the waste- waste of time locating the product.
With well-managed WMS created by tracking KPIs, it reduces the potential cost of excess material movement, placement and retrieval, ultimately lowering the operating costs.
Did you find the most relevant KPI metrics suitable to optimize your logistics business and ensure the warehouse functions better?
As different KPIs serve different purposes, which warehouse KPIs are the correct indicators to track your business efficiency?
With many KPIs worth monitoring, it can be an overwhelming process for a business. So, if you are looking for a warehouse on rent in Gujarat and ensure the business runs optimally, let's get in touch to optimise your warehouse activities.
Prime Associates is a known name in the field with decades of experience in the commercial space leasing industry. With warehouses for rent across Gujarat, Prime Associates offers efficient warehouse management solutions to ensure the smooth functioning of your logistics business.
If you are looking for solutions to optimize your logistics operations, contact us. We would be glad to give you beneficial advice on the KPIs.
This is a wider card with supporting text below as a natural lead-in to additional content. This content is a little bit longer.....
You take a step in the right direction and now the business is booming, and demanding space to store all the commodities......