4. Key Performance Metrics for Fulfillment Centers

  • Order Accuracy Rate:
    • Measures the percentage of orders correctly picked, packed, and shipped.
    • Target: 99% or higher.
  • Order Processing Time:
    • Time taken from order placement to shipment.
    • Faster processing leads to improved customer satisfaction.
  • Inventory Turnover Rate:
    • Indicates how quickly inventory is sold and replaced.
    • High turnover reduces storage costs and risks of obsolescence.
  • On-Time Delivery Rate:
    • Percentage of orders delivered within the promised timeframe.
    • Reflects the fulfilment centre’s reliability.
  • Return Processing Time:
    • The speed at which returned items are inspected and resolved.
    • Efficient returns management improves customer trust.