Receiving and quality KPIs
Summary
These KPIs measure how well goods come in and how reliable stock is. The receiving ones need the receiving module; inventory accuracy needs the inventory module (and cycle counts done). All can be split by customer; none by operator.
Each KPI
| KPI | Unit | Better when | Benchmark | Range by |
|---|---|---|---|---|
| Receiving accuracy | % | higher | 99% | receipt confirmation |
| On-time arrivals | % | higher | 95% | receipt confirmation |
| Dock-to-stock time | hours | lower | 3.5 h | receipt confirmation |
| Damaged units | % | lower | 1% | receipt confirmation |
| Discrepancies by type | count by type | — | — | receipt confirmation |
| Inventory accuracy (by location) | % | higher | 99% | count date |
| Inventory accuracy (units) | % | higher | 99% | count date |
Receiving accuracy
Formula: lines with no discrepancy ÷ all lines of confirmed receipts that come from an advance ship notice × 100. A line with an overage, shortage, damage or wrong SKU counts as inaccurate, whatever the size of the difference. Walk-in receipts, with no notice, are left out: there is nothing to compare against. See Entering lines.
On-time arrivals
Formula: confirmed receipts that arrived on or before their notice's expected date ÷ confirmed receipts whose notice has an expected date. Arrival is the receipt's actual received date; if missing, the dock job arrival; if also missing, when the receipt was created. It measures the customer's supplier or carrier, not the warehouse.
Dock-to-stock time
Formula: average hours from arrival (same rule as above) to receipt confirmation. It measures up to confirmation, not until the goods are put away in their final location. A receipt with an arrival later than its confirmation is discarded.
Damaged units and discrepancies
- Damaged units: damaged ÷ (received + damaged) across all confirmed receipts, with or without a notice.
- Discrepancies by type: how many lines had an overage, shortage, damage or wrong SKU. Best shown as a donut. It cannot go to the portal.
Inventory accuracy
Comes from approved, adjusted or rejected cycle counts. See Cycle counts.
- By location: percentage of counts whose difference stayed within the count plan's tolerance. Yes or no per location.
- Units: 100% minus the sum of differences (absolute) over the sum of what the system said. If there was any difference, it never shows 100%: the cap is 99.99%.
Worked example
This week, Valley Distributors had 5 receipts with a notice, 50 lines in total: 47 exact, 2 short and 1 with damage (6 damaged pieces out of 1,200 received).
- Receiving accuracy: 47 ÷ 50 = 94%.
- Damaged units: 6 ÷ (1,194 + 6) = 0.5% (green, because lower is better).
- Discrepancies by type: short 2, damaged 1.
- If 4 of the 5 notices had an expected date and 3 arrived on time: on-time arrivals = 75%.
What moves each number in the operation
- Enter the actual received date when goods arrive, not when confirming days later.
- Ask the customer for notices in the right unit: announcing pieces and receiving cases creates discrepancies on every line.
- Confirm receipts the same day: every hour of waiting raises dock-to-stock time.
- Run cycle counts regularly: without counts, the inventory accuracy KPIs say "No data".
Frequently asked questions
Why do my receipts without a notice not count toward accuracy?
Because accuracy compares what was received against what was announced. With no notice there is no comparison. If you want to measure a customer who ships without notices, ask them for notices (portal, API or entered). See Advance ship notices (ASN).
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