Top KPI for the Fulfillment Industry

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Performance indicators, known as KPIs (key performance indicators), are metrics that measure the performance of business processes. KPI indicators are mostly used so that the organization can apply constant improvements to procedures, which can lead to better productivity and profit margins.


In the logistics activity, these indicators are fundamental for measuring the productivity, costs and quality level of the services offered. The information obtained from these indicators will be directly reflected on the effectiveness of logistics management because they allow continuous monitoring and evaluation of all values ​​of time, resources and costs involved in everything that means logistics processes.


Order accuracy is the indicator that monitors the degree of incidents that occur from placing the order to delivering an order. It is an extremely important indicator for all those who want to identify patterns and constantly correct the errors that occur.


On Time In Full, also known as OTIF, measures the percentage of orders delivered on time, in the quantity ordered and with all the necessary documents. It is useful for all those who are committed to providing customers with punctual and safe deliveries.


Lead Time is a KPI that tracks the duration of processes and operations from start to finish. It measures the time spent in each stage of the supply chain and helps identify strategies for optimizing this time.


Stock rotation is a KPI that averages the outflows of goods and the stock in the warehouse. Ideal for all those who offer storage services as part of their logistics solutions.


Warehousing costs monitor expenses related to the management of the warehouse or warehouses that the logistics service company has. These include equipment costs and maintenance costs (both storage space and equipment).


Capacity utilization (CU) measures the capacity utilization of a warehouse. The capacity to use the storage space has a major impact on the profitability of the warehouse and the logistics services company.


Productivity is the indicator that measures the productivity rate of the company’s employees and also has a major impact on business performance.


Transport costs measure all costs related to the delivery of orders: fuel, motor third party liability insurance, repairs, maintenance, inspections.


The number of shipments represents the number of orders shipped from the warehouse in a certain period of time (weekly, monthly, annually). It is an ideal indicator for any carrier that constantly monitors and analyzes profit margins.


Detailed knowledge of the parameters of each operation is not enough, but it is the first step in creating strategies that can optimize the entire chain of logistics processes. In order to manage all these services, accurately record data and transmit data in real time to all parties involved, logistics services companies need IT solutions. One of these solutions is WMS, which in the case of logistics service operators must include certain functionalities.


Unlike traditional warehouse distributors who own a WMS, when considering the possibility of purchasing or upgrading a WMS solution, 3PL logistics operators must also consider other additional features, such as customer-based billing management, custom documents, communication and visibility, access for logistics customers and integration with software solutions they use.


FluxVision WMS is a key component in efficient warehouse management and inventory optimization, and allows automatic and complete management of all storage activities for an unlimited number of entities. It optimizes all operations that take place in the warehouse, from reception to delivery. FluxVision WMS offers precision and agility in storage with a minimum of effort.

Want a more efficient warehouse? Ask for a FluxVision WMS presentation!

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