Warehouse KPIs
Intralogistics metrics measure productivity and cost inside the four walls. These are distinct from supply chain metrics (OTIF, inventory turns) and transportation metrics (cost per mile).
Primary source for benchmarks: WERC DC Measures — the industry-standard KPI benchmarking study published annually.
Core Throughput & Labor Metrics
Section titled “Core Throughput & Labor Metrics”| Metric | Definition | Best-in-Class | Median |
|---|---|---|---|
| UPH — Units Per Hour | Units picked or processed per operator per hour | Varies by operation type | — |
| CPO — Cost Per Order | Total warehousing cost / orders shipped | — | — |
| Lines/Hour | Pick lines completed per operator per hour | — | — |
| Orders Picked & Shipped per Person-Hour | — | ≥35 | 10 |
| Lines Received & Put Away per Person-Hour | — | >68.9 | — |
The gap between median (10 orders/hr) and best-in-class (35 orders/hr) picking performance is not primarily a technology gap — it’s a slotting, zone structure, and process discipline gap.
Inbound / Receiving Metrics
Section titled “Inbound / Receiving Metrics”| Metric | Average | Best-in-Class |
|---|---|---|
| Dock-to-stock time | 4-8 hours | <3.5 hours (WERC 2025) |
| Receiving accuracy | 95-99% | >99.9% |
| Correct documentation rate | — | >99.64% |
| On-time supplier receipts | ~90% | — |
Storage & Space Metrics
Section titled “Storage & Space Metrics”| Metric | Target/Benchmark |
|---|---|
| Warehouse location utilization | 92-95% best-in-class; never exceed 85% at peak (operational ceiling) |
| Cube utilization | — |
| Inventory accuracy | 98-99%+ (best-in-class) |
The 85% rule: Operational utilization should never exceed 85% of theoretical capacity during normal operations (see Putaway & Storage). Above 85%, replenishment congestion and accuracy problems spike.
Shipping & Fulfillment Metrics
Section titled “Shipping & Fulfillment Metrics”| Metric | Best-in-Class |
|---|---|
| On-time shipping | >99% |
| Order accuracy (ship the right thing) | >99.9% |
| Perfect order rate | — |
Financial Metrics
Section titled “Financial Metrics”| Metric | Definition |
|---|---|
| Cost per unit | Total DC operating cost / units shipped |
| Cost per line (CPL) | Total DC operating cost / lines shipped |
| Cost per pallet | Total DC operating cost / pallets shipped |
| Labor as % of warehousing budget | Typical: 50-70% in conventional operations |
Key Benchmark Relationships
Section titled “Key Benchmark Relationships”-
3:1 receiving gap — Best-in-class (68.9 lines received/put away/hr) vs. median (~22 lines/hr). Gap is ASN compliance + dock scheduling + equipment match, not technology.
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3.5:1 picking gap — Best-in-class (35 orders/hr) vs. median (10 orders/hr). Layout, slotting, and zone structure drive most of this.
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$390K/yr mispick cost — Average cost of picking errors at a mid-size operation (includes return processing, reshipping, customer service).
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36% warehouse worker turnover — Annual average in the U.S. Chronic unfilled headcount is the single strongest automation trigger signal.
Metric Selection for Business Cases
Section titled “Metric Selection for Business Cases”When building a business case or benchmarking gap analysis:
- Use WERC DC Measures as the primary source (cite the year)
- Present current-state vs. best-in-class gap as the opportunity
- Translate gap to dollars using actual labor rates and volumes
- Avoid using vendor-provided benchmarks for base case — use WERC, then let vendors defend their improvement claims