Why Your Stocktake Belongs in Independent Hands
When a warehouse team counts its own stock, it is auditing its own work. Here is why auditors insist on an independent party — and what actually changes in the numbers.
Read ArticleWhy Do Most Improvement Efforts Fail?
Because they start with the solution before the measurement. Without a number before the intervention and a number after it, the discussion turns into impressions: "the work is faster now" or "things have improved" — with no evidence.
1. Inventory Accuracy
The percentage of items whose physical balance matches their book balance. It is the single most important indicator of all, and it is measured through periodic counting. Every other metric loses its meaning if this one is low.
2. Order Accuracy
The percentage of orders picked with the correct item and quantity, error-free. It measures output quality as your end customer sees it.
3. Order Cycle Time
The time from receipt of the order to despatch. It exposes bottlenecks in picking, packing and shipping.
4. Operating Cost per Square Metre
Total warehouse operating costs divided by floor area. It links operational performance directly to financial cost — and it is the metric senior management understands immediately.
5. Inventory Turnover
The number of times inventory is cleared over a given period. A decline is an early indicator of dead stock building up and capital being tied up.
Start with Just Two
Do not take on all five at once. Pick two, measure them weekly for a month, and discuss the results with the team. Discipline in measurement matters more than the number of metrics.
United Integrated Team
