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welcome to Palms Academy meet John head of XYZ Corp previously we saw how John implemented a WMS and optimized his Warehouse operations post implementation to track the efficiency of each operation John decides and configures the following kpi metrics in the WMS let's look at the kpis that John configures John Loosely classifies the kpis in the following operational categories one receiving kpis two dispatch kpis three inventory kpis 4. resource kpis John understands that accurate inbound operations are critical for better utilization of the warehouse space Jon measures the inbound performance on The Following kpis one inbound turnaround time 2. unloading turnaround time 3 put away accuracy this helps him track his receiving operations and optimize the inbound process let us look at how Jon measures the performance for these kpis a unloading turnaround type to find the unloading turnaround time Jon measures the time taken to unload a vehicle by the receiving operators John compares the capture time against the average time calculated by the system for a vehicle type shipment combination to measure the efficacy of the unloading operations B put away accuracy bending of the right skus in the right locations as per the defined put away rules and restrictions determines the accuracy of the put away operations John knows that the put away accuracy is the most critical aspect of the inbound operation as this impacts all the subsequent operations Jon compares the put away location suggested by the system and the actual location in which the SKU is binned in order to determine put away accuracy John measures the kpi at two levels for a defined time period one at the overall instruction level and the other at the line level of each instruction C inbound turnaround time John calculates the receiving turnaround time by timing the inbound operations from the start of receiving or unloading process till completion of the put away this time is then compared against the total average of all receiving operations calculated by the system this helps Jon track the efficacy of inbound operations after the inbound operations John proceeds to work on outbound kpis Jon decides on the following kpis for outbound one outbound turnaround time 2. fulfillment accuracy three back order rate for sales return let us look at these in detail a outbound turnaround time John tracks the total time required by a picker to pick the stock and dispatch it from the warehouse this is inclusive of all the operations such as picking packing sorting and loading the items into the truck performance of the outbound operations is then compared against the total average time of all similar outbound operations B fulfillment accuracy one determines the Fulfillment accuracy at two levels one at the order level and the other at the line level of each order the order level fulfillment accuracy is determined by the total number of orders estimated to be dispatched for a period versus the number of orders that were dispatched otherwise fill rate is determined by the number of line items that were delivered out of the total number of items that were ordered C back order rate it is a measure of total number of orders or order lines pending to be fulfilled against the total number of orders or order lines placed this helps Jon understand the gap between demand and supply and improve his procurement planning d sales return measures the sales returns at two levels one at the invoice level and the other at the line level invoice level sales return is the total number of invoices where sales return was registered against the total number of invoices dispatched for a given period line level sales return is the percentage of the total number of lines returned against the total number of lines that were dispatched across all sales orders for a given period of time John moves on to measure his inventory kpis John decides to configure the inventory kpis in the following areas one inventory storage to inventory planning let us see how John configures fees hey inventory storage John calculates this at three steps first he measures the total storage locations available versus the total locations that are utilized John also measures the total CBM available versus the total CBM utilized finally John evaluates the total number of locations that have sub-optimal storage this helps Jon and his team optimize location utilization of the warehouse inventory planning this is one of the most important aspects that affects multiple operations such as inventory storage delivery lead time order fulfillment and even the profitability of the company John measures the percentage of skus that are overstocked versus the percentage of skus that are understood John recognizes the importance of resource utilization and thus measures the kpis for resources in the following areas one labor efficiency two machine utilization let us look at these kpis in a labor efficiency efficient utilization of resources translates into reduced labor cost John calculates the time spent by each team member on an operation and Compares it against the total average time taken for similar operations it helps Jon plan the operation and the budget of the warehouse depending on the workload this also helps Jon to assess individual performance of his team for rewards and recognitions user-wise put away accuracy John calculates the user-wise put away accuracy by comparing the location suggested by the system versus the actual location in which the SKU was binned by each user he then Compares this value with the median value arrived at by using the put away kpi configured as part of inbound operations to identify user-wise accuracy fee machine utilization carrying out multiple operations in the warehouse requires machines such as forklifts trolleys Etc Jon calculates utilization time of each of these equipment for specific activities in the warehouse recording equipment usage helps Jon improve resource allocation for various activities after evaluating all the key performance metrics John is now at a better position to plan and scale his Warehouse operations let us know what additional kpis will help Jon with his operations in the comments below this concludes the video on Warehouse kpis please subscribe to Palms Academy for more informational videos and blogs on warehouse management