9 Warehouse KPIs for An Efficiently Managed Warehouse

Warehouse KPIs (Key Performance Indicators) can be vital to the efficiency of any warehouse operation because they permit you to track and establish benchmarks for your business. This is the way to create an efficient warehouse. They also aid in identifying areas in need of improvement, particularly those that have an impact on the overall cost of operations and the customer’s satisfaction.

Warehouse KPIs are typically unique to a particular operation however, they are not applicable to all businesses. In our opinion, there are some essential warehouse KPIs that must be monitored regardless of how big the business is for an efficiently managed warehouse. They include:

Order Fulfillment

Order Fulfillment begins with the placing of the order and ends with the delivery of the items to the customer for distribution. There are a variety of metrics that can be analyzed in the process of fulfilling orders, including:

  • order fill rate: Fill rate is the measure of the proportion of the order that was filled. An acceptable fill rate should be between 97 and 99 percent of the total amount. Anything less than 94% could be due to inefficiencies within the processing of the warehouse and replenishment process. A fill rate of 100 percent is believed to be the highest of its kind in the industry.
  • Order Fulfillment Timeliness: A 100% fill rate has no significance to the customer when the order isn’t delivered in time. The most common timeframe for order fulfillment is between 1-2 days, with the best in category being no more than 24 hours from the date of the order’s placement until the time of dispatch to the distribution center.
  • Picks per hour are the main outbound metric that allows you to analyze and identify the effectiveness of your group of pickers as well as their performance on a daily basis. A typical picker will select between 120-180 pieces/ cases per hour. The top pickers get more than 250 picks an hour. Utilizing the latest technology, such as Voice Picking could increase the rate of picks by 30% when the conditions are right.
  • On Time, In Full: If all of the above is achieved at the top of the line but if the products are not received on time this will have a negative impact on the business. On-time deliveries should typically be in the range of 98 to 99 percent. Anything that is higher than this is considered exceptional.

Inventory Accuracy

Your inventory should be in line with the one shown in your database, but it’s not always the case. an unbalance between the two at any big distribution center. A high percentage of inaccuracy in inventory can lead to unexpected delays in orders, unsatisfied customers, and eventually more expensive overall costs. Improve your accuracy in inventory by performing regular checks against your database and using cycles as a method of continuously verifying your database’s records.

Physical Inventory Count ÷  Database Inventory Count Percentage of Accuracy in Inventory

Also read: 10 Inventory Management KPIs for Better Performance

Overall Throughput

Warehouse throughput is the number of units handled and moved around your warehouse every day. To determine your throughput rate be sure to monitor the flow of goods through your warehouse over the duration of. For instance, if you would like to know the number of orders processed by your warehouse in the eight-hour period You can monitor the quantity of orders processed in the time frame and the time it takes for each item to be moved from the pick stage to packing and labeling. If your warehouse can process 400 orders in just eight hours, this means that employees are processing about 50 orders every hour.


Replenishment refers to the movement of inventory from the reserve or central storage space to the primary storage bins to allow for moving downstream into picking faces to perform pick/pack operations. This is a crucial metric for warehouses that deal with many products in large quantities, especially in e-commerce settings. The replenishment metric evaluates the processes employed to execute the movement and also how efficient it is. By utilizing effective replenishment strategies warehouses/companies will:

  • Avoid dead stock and overstocked
  • Check for shortages
  • Ensure on-time deliveries
  • Ensure proper product rotation
  • Make sure you have a safe stock
  • Accuracy in Picking and Shipping

The main purpose of a warehouse’s operation is to make sure that customers receive the items they requested within the time frame they want them to be delivered. So, order accuracy is among the most crucial metrics warehouses must track daily. The best warehouse operations aim for order accuracy between 99.5 percent to 99.9 percent.

Turning Inventory

The ratio of stock turnover is a measure used to measure how often and when a specific item of stock is received processed and shipped within a certain timeframe. This is a crucial gauge of a company’s quality of inventory and its order processing. Turns in inventory (also known as “speed category” for an object could be tracked within a WMS. This allows you to manage inventory in an organization in a different way. For instance, using counting inventory cycles it is possible to count those who move faster more often than slow movers, which gives you the capability to put your labor effort directly where it could have a direct impact instead of taking all items of inventory by using the same processes for managing inventory.

Dead Stock

Dead stock refers to inventory that isn’t moving due to a lack of demand. It is stored in warehouses in a warehouse, taking up capacity. It is comprised of stock that has been damaged and/or expired or not sellable due to reasons of any kind. The metrics for dead stock are vital to track because dead stock can cause costs for inventory and block space for more profitable products. The best practice is to monitor dead stock and send reports to the management team that provides sales incentives to get these items out.

Supplier KPIs

The measurement of the supplier’s KPI is crucial to establishing top-of-the-line procurement. It will help improve communication, improve spend and order visibility, enhance process efficiency, and identify savings opportunities in cost and more. Supplier KPI measures to be considered include performance, reliability compliance, as well as customer service.

Also read: 7 Key Steps To Developing A Winning Customer Experience Strategy

Customer Satisfaction

Customer satisfaction is heavily dependent on the overall performance of the entire warehouse operations. The customer satisfaction scores reflect all the performance you can get from your outbound and inbound operations, the overall management of inventory, and communication protocols. The level of satisfaction with your customers can be assessed by looking at:

  • On-time delivery
  • Shipping accuracy
  • Stock accuracy
  • Inventory turnover
  • Activity reporting, like shorts and returns


If you’re not keeping track of what works and what does not, it’s hard to tell the things your business requires to succeed and if you’ve got a well-managed warehouse. Selecting the best warehouse KPIs to monitor in line with your business goals will be the initial step to making your business profitable and having satisfied customers. Once the warehouse KPIs which best fit your business are determined take a regular look at them and adjust them according to the lessons you’ve learned. You may discover that you require additional space, more workers, or even new technology, such as the latest WMS system. Whatever your requirements you have, proper KPI monitoring will allow you to identify them.

5 Most Important KPIs to Track for Software Startups

Beginning a new company can be complicated. How difficult? That is difficult to the point that 8 out of 10 aren’t able to last past the fifth year. For software development companies, the situation could be more difficult than this. The reasons are numerous. In one sense, the majority of software development firms rely on one product to power their business from the beginning — and there’s a lot that could go wrong with inexperienced software products.

The reality is that any software development startup must perform a flawlessly choreographed high-wire show if they hope for their business to last for long enough to flourish. However, doing so requires vigilance and the most operational and real-world data as is possible. However, not every software development startup has a clear idea of what KPIs they should be watching to evaluate the overall condition of their business and the likelihood of success. To help here are the three most important KPI categories for software development startups and five specific KPIs to track for software startups.

Three Types of Relevant KPIs

The KPIs software companies need to track fall into three primary categories. They include:

Performance Metrics

The latter is this KPI category that covers every aspect of the business’s operations. It encompasses things like productivity measures as well as project completion metrics and efficiency metrics. Together, these categories help businesses get the best value for their money.

Financial Metrics

This KPI category covers all the information you need to be aware of the financial condition of the business. It includes things such as net profit metrics, budget accuracy metrics, and revenue figures. It’s the one that gives managers an overview of the overall health of their company.

Customer Metrics

In the case of startups in the early stages customer metrics KPI category shouldn’t be too difficult to monitor. This is due to the fact that most software companies have only a handful of key customers to discuss. However, KPIs such as customer lifetime value form a part of this group and are essential information that software companies can utilize to perform fairly precise revenue forecasting.

Also read: Top 10 Websites to Promote Your Startup

Five Key KPIs to Track Software Startups

In the categories mentioned above there are around five crucial KPIs every software development startup must track. This will give them the information they need to make the right choices and increase their chances of achieving long-term success. Let’s look at what they are.

1. Revenue Concentration

For software startups, There’s virtually no financial measure that’s more important than the ratio of revenue. It’s an important KPI that reveals where the company’s revenues are getting its money from and how it’s distributed among the customers. This is important as it allows managers to know what kind of financial loss the loss of a key customer would cause.

A business could fail if a single customer is responsible for 10 percent or more of its total revenue, or if its most important five customers comprise 25 percent or more of its revenue base. Thus, analyzing the concentration of revenue will alert management to the need to increase the company’s customer base in order to secure it against the possibility of a devastating income loss.

2. Customer Churn Rate

It’s important to know the percentage each customer makes up of the revenue base of a software company but that’s not enough without knowing the probability of losing a client. This is where the KPI for customer churn is crucial. It’s a gauge of the number of customers that a company should be expecting to lose during a particular time.

This data is crucial to creating new revenue forecasts and budgets as well as aiding the business in deciding how much to invest in marketing and retention strategies for customers. Also, it informs the business whether they are able to count on the loyalty of their clients or have to be aggressive to secure new customers to ensure that money continues to flow into the company.

3. Customer Lifetime Value

Value of customer lifetime KPI which is in conjunction with the concentration of revenue. It’s a measure that allows businesses to understand in a relative way how valued each of its customers actually is. As mentioned earlier it’s a crucial data which a company needs to use to forecast its revenues. But that’s not all.

It’s also a KPI that can guide the software development process for specific changes and feature development. The main point is that software companies must be aware of the needs of customers who are worth their money. If a huge client is looking for a certain software feature or functionality in an application it’s best to provide it. Data on the lifetime value of customers could be used as a method to prioritize requests for change from customers so that the top customers will always receive the features they require from any product.

Also read: What is Cybersecurity Metrics & 14 Cybersecurity Metrics KPIs to Track

4. Release Burndown

The second crucial KPI is from the category of performance metrics. It’s the burndown of releases. This is a test of how well the company’s software developers team is keeping pace with the release schedules. It’s an important way managers will be able to monitor the pace of work in a specific software project.

This is crucial because the majority of software users require predictable release schedules for software either quarterly or monthly. In both instances, the release of burndown information can assist an organization that develops software to set release dates that they are able to meet. In the absence of this, they’ll run the possibility of making promises to their customers that they aren’t able to fulfill, which is usually the only way to avoid failing to launch.

5. Wasted effort

A wasted effort KPI is a measurement that allows an organization that develops software to be aware of how much they’re investing in tasks that don’t ultimately make it into their software products. This could include the development of aspects that don’t end up in a product, or changing codes in ways that do not explicitly enhance a product. It’s believed that software development teams across the world lose a total of daily $1 billion in wasted effort.

Tracking the costs of wasteful effort helps software development companies determine the decision-making processes and aspects of the development process that require rethinking. It will help them be as efficient as they can this is vital for any software startup that hopes to get through the beginning stage.


Obviously, it’s a given that a startup in the field of software development must produce high-quality software to thrive and grow. But, the past is filled with companies that produced great software but failed because didn’t translate it into real revenues. Through monitoring the KPIs mentioned above a a software startup manager can ensure that they keep their business on the right track towards long-term achievement.