INDUSTRY GUIDE

Top 10 Distribution KPIs

The utilization of your warehouse capacity is important to know. This metric could be based on available cubic feet storage, number of pallet locations or available CUSTOMER EXPERIENCE pick facings. If your company is using only 50% of its warehouse capacity, it may be wasting money. And,

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Top 10 Distribution KPIs

Capacity

The utilization of your warehouse capacity is important to know. This metric could be based on available cubic feet storage, number of pallet locations or available CUSTOMER EXPERIENCE pick facings. If your company is using only 50% of its warehouse capacity, it may be wasting money. And,

On-Time Delivery (OTD)

if more than 85% of your capacity is utilized, you're This is the primary measurement of the efficiency of probably unable to operate efficiently (or safely). your processes, and it is simply measured as a ratio of Identifying the utilization sweet spot – where your the number of units delivered divided by the total units warehouse, people and processes operate most shipped. The definition of "on time" can vary depending efficiently – is key. Your ERP will help you make that on the customer and the industry, and whether shipping calculation and help you understand and accommodate was handled in-house or by an outside provider. If partial seasonal and temporary variability. deliveries are common, On-Time Delivery In-Full is a useful drill-down metric.

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Ultra Consultants
Independent ERP consulting since 1994. Over 1,000 selection and implementation projects for mid-market manufacturers and distributors. No vendor partnerships, no referral fees.