With the upgrade of the production came the need to look at better performance of the warehouses. The urge for measuring warehouse performance is provoked by internal issues (e.g. space utilization, inventory accuracy, safety and housekeeping), external issues (order accuracy, stock-outs, complaints) and performance issues (e.g. goals, feedback, competence) (Tompkins 1998). Some of the challenges the warehouses are faced with are material handling, data collection, increased labor to support the warehousing requirements (Garcia). The areas of interest to measure the performance are productivity, inventory and order fulfillment. Some organizations tend to measure their progress against financial measures such as return on investment, cash flow, sales growth, but those measures are irrelevant and do not truly refer to the issues of quality, service, and continuous improvement.