Measuring warehouse metrics is critical for providing managers with a clear vision of potential issues and opportunities for improvements. Metrics are tied directly to the business strategy and operation’s success drives the financial results of the organization. If warehouses are going to contribute to be a source for adding value to the supply chain then they need to measure their performance with perfect metrics.
The metrics for measuring performance in a warehouse fall into three main categories which includes order fulfillment, inventory management and warehouse productivity.
The establishment of metrics for auditing warehouse performance and assessment of WMS potential as a basis for investment justification should be the first steps in any WMS project [13]. The identification of proper metrics and opportunities for improvement can be a preliminary justification to determine potential payback [14]. The following metrics supplements the above process