Tablero de KPIs en un almacén mostrando pedidos, líneas/h y errores
14 Oct

Which Simple KPIs Tell Me If Picking Is Working Well?

Posted at 13:24h in Picking Carts by

A line = one SKU within the order (with its quantity). Below you’ll find each KPI with: what it is, why it matters, how to calculate it, how to implement it, and how to track it — in a concise, actionable format.

The KPIs, One by One (Defined and Ready to Use)

 

1) Picking Accuracy

  • What it is: % of lines without error (correct SKU/quantity).
  • Why it matters: fewer returns and rework; protects margin.
  • Formula: 1 − (error lines / total lines).
  • Implementation: record cause of each error in quality control (sheet/WMS).
  • Tracking: daily and weekly, by area/shift/category.

 

2) Orders per Hour (OPH)

  • What it is: complete orders closed per hour (by team/shift).
  • Why it matters: measures real output capacity.
  • Formula: closed orders / worked hours.
  • Implementation: log shift start/end and count closed orders.
  • Tracking: daily and by time slot (regular vs campaign).

 

3) Lines per Hour (LPH)

  • What it is: lines prepared per hour (regardless of order size).
  • Why it matters: fine measure of work rhythm; complements OPH.
  • Formula: prepared lines / worked hours.
  • Implementation: extract from WMS or tally sheet by area.
  • Tracking: daily; compare by method (order/batch/zone).

 

4) Order-to-Ship Time

  • What it is: minutes from “order confirmed” to “ready for shipping.”
  • Why it matters: direct impact on SLA and customer satisfaction.
  • Formula: end timestamp − start timestamp.
  • Implementation: timestamps in WMS or simple manual record.
  • Tracking: daily with P50/P90 to see variance.

 

5) On-Time Shipments (Simple OTIF)

  • What it is: % of orders shipped before the committed cutoff.
  • Why it matters: fulfillment of the promise to customer/carrier.
  • Formula: on-time orders / committed orders × 100.
  • Implementation: define carrier cutoffs and tag each order.
  • Tracking: daily/weekly; cross-check by carrier and channel.

 

6) Returns Due to Picking Error

  • What it is: % of returns caused solely by picking mistakes.
  • Why it matters: separates warehouse failures from catalog/customer issues.
  • Formula: “picking error” returns / shipped orders.
  • Implementation: standardized, mandatory return reason codes.
  • Tracking: weekly/monthly; top 10 SKUs with most incidents.

 

7) Cost per Order (or per Line)

  • What it is: labor + consumables cost of picking.
  • Why it matters: links productivity with margin and investment decisions.
  • Formula: (picking labor cost + consumables) / orders (or lines).
  • Implementation: hours assigned to picking × cost/hour; standard consumables.
  • Tracking: monthly; compare against previous months and peaks.

 

8) Labor Utilization

  • What it is: % of the shift spent on productive picking tasks.
  • Why it matters: reveals waiting times, bottlenecks, and coordination gaps.
  • Formula: productive time / total time × 100.
  • Implementation: quick sampling (5 min/hour) or WMS terminal status logs.
  • Tracking: weekly; act on causes (routes, replenishment, packing).

 

9) Distance/Route per Order

  • What it is: meters or minutes walked to complete a typical order.
  • Why it matters: less walking = more orders/hour and less fatigue.
  • Formula: sample with pedometer/app; alternative: picks/minute.
  • Implementation: measure representative batches across shifts/zones.
  • Tracking: biweekly; compare before/after layout changes.

 

10) Perfect Order Rate

  • What it is: % of orders without error, damage, delay, or missing docs.
  • Why it matters: “customer view” of operations (quality + timing).
  • Formula: perfect orders / shipped orders × 100.
  • Implementation: simple validation checklist at closing.
  • Tracking: monthly; prioritize recurring issues.

 

Quick Adjustments by Picking Type

  • By order: monitor OPH, LPH, walking distance; check SKU accuracy.
  • By batch: include consolidation time and allocation errors.
  • By zone: watch balance between areas and transfers.
  • PTL/Put-to-Light: focus on accuracy, LPH, and training time.
  • RF/voice: compare confirmation speed and rereads vs paper.

 

Looking Ahead

With these 10 KPIs and compact definitions, you’ll get a clear picture: quality, speed, compliance, and cost. Start with a short dashboard (Accuracy, LPH, OTIF, Picking Error Returns, Order-to-Ship) and keep formulas consistent. When the data shows a bottleneck, decide whether to automate just enough or adjust processes to free up capacity.