Census of Distribution: Surviving, Getting By or Thriving

Census of Distribution: Surviving, Getting By or Thriving

How Does Your Operation Stack Up? Warehouse/distribution center operating metrics.

More Metrics
This is the second article in a series in which MHM will report the results of the 2005 MHM Census of Distribution.

Managers of today's top performing warehouse/distribution centers— those in the top quartile (75th percentile)—report annual storage utilization rates of 90%, 26.5 orders picked or packed per hour, a one-hour dock-to-stock time, 99% on-time delivery rate, 99% order fill rate, and 12 inventory turns per year. Use the table below to compare your facility's performance against the best and the industry as a whole.





WAREHOUSE/DISTRIBUTION CENTER OPERATING METRICS

Metric (Formula)

All Respondents

Mean*

25th percentile

Median

75th percentile

N=

Storage space, sq. ft.

117,528

15,000

50,000

138,750

424

Storage space, cubic ft.

2,843,898

62,400

595,000

3,000,000

283

SKUs (Number handled or stored over the past 12 months)

108,698

1,000

5,000

20,000

386

Full-time equivalent employees (2005)

225.6

21.5

59

180

441

Age, years (Years operating under current ownership)

16.8

5

10

25

451

Warehousing costs as a % of shipment value, % [(labor + overhead) ÷ shipment dollar volume]

12.2

15.0

6.3

3.0

259

Annual storage utilization, % (occupied capacity ÷ total storage capacity)

77.8

70.0

80.0

90.0

335

Orders per hour (orders picked or packed ÷ total warehouse hours)

57.4

2.8

8

26.5

261

Lines picked per hour (lines picked or packed ÷ total warehouse hours)

184.9

10

25

74.7

220

Items picked per hour (items picked or packed ÷ total warehouse hours)

1,577.9

25.0

79.5

203.8

232

Dock to stock time, hours (receipt to storage time in hours)

10.8

12.0

4.0

1.0

271

Cost per order (annual labor and overhead costs ÷ total orders)

$3,145.30

$155.50

$32.00

$10.00

200

On-time delivery rate, % (orders delivered on time ÷ total orders)

93.5

94.0

97.0

99.0

311

Order fill rate, % (orders filled complete ÷ total orders)

94.1

93.0

97.5

99.0

297

Order accuracy, % (error-free orders ÷ total orders)

96.4

96.5

99.0

99.5

313

Line accuracy, % (error-free lines ÷ total lines shipped)

96.4

98.0

99.0

99.7

246

Order cycle time, hours (order release to ship time)

25.3

3.0

12.0

32.0

271

Perfect order rate, % (perfect deliveries ÷ total deliveries)

92.5

92.1

98.0

99.0

248

Customer delivery lead time, days (receipt of order to delivery)

11.4

7.0

3.0

2.0

289

Total inventory turn rate, turns

11.3

4.0

6.0

12.0

275


Metric (Formula)

Machinery, Equipment & Supplies

25th percentile

Median

75th percentile

N=**

Storage space, sq. ft.

5,000

17,000

56,500

62

Storage space, cubic ft.

15,000

80,000

900,000

43

SKUs (Number handled or stored over the past 12 months)

850

2,775

12,000

48

Full-time equivalent employees (2005)

13.5

40

128.5

65

Age, years (Years operating under current ownership)

4.75

10

25

62

Warehousing costs as a % of shipment value, % [(labor + overhead) ÷ shipment dollar volume]

12.5

5.0

3.0

34

Annual storage utilization, % (occupied capacity ÷ total storage capacity)

80.0

85.0

96.0

43

Orders per hour (orders picked or packed ÷ total warehouse hours)

2

6

10

36

Lines picked per hour (lines picked or packed ÷ total warehouse hours)

9

25

55

31

Items picked per hour (items picked or packed ÷ total warehouse hours)

16.8

45.0

78.0

27

Dock to stock time, hours (receipt to storage time in hours)

8.0

4.0

1.8

30

Cost per order (annual labor and overhead costs ÷ total orders)

$250.00

$46.00

$11.79

23

On-time delivery rate, % (orders delivered on time ÷ total orders)

89.0

96.0

98.0

39

Order fill rate, % (orders filled complete ÷ total orders)

90.0

96.8

99.1

38

Order accuracy, % (error-free orders ÷ total orders)

95.0

98.0

99.3

38

Line accuracy, % (error-free lines ÷ total lines shipped)

96.0

99.0

99.8

27

Order cycle time, hours (order release to ship time)

1.0

8.0

24.0

31

Perfect order rate, % (perfect deliveries ÷ total deliveries)

90.0

97.0

99.0

28

Customer delivery lead time, days (receipt of order to delivery)

7.0

3.0

2.0

37

Total inventory turn rate, turns

4.0

6.3

9.3

30


Metric (Formula)

Grocery & Related Products

25th percentile

Median

75th percentile

N=**

Storage space, sq. ft.

30,000

52,500

192,500

36

Storage space, cubic ft.

200,000

1,000,000

3,027,500

27

SKUs (Number handled or stored over the past 12 months)

300

1,900

12,000

35

Full-time equivalent employees (2005)

12.25

45.5

265.5

38

Age, years (Years operating under current ownership)

5.5

14

26.5

37

Warehousing costs as a % of shipment value, % [(labor + overhead) ÷ shipment dollar volume]

28.5

10.0

3.7

21

Annual storage utilization, % (occupied capacity ÷ total storage capacity)

65.0

77.5

88.8

28

Orders per hour (orders picked or packed ÷ total warehouse hours)

2

3

10

19

Lines picked per hour (lines picked or packed ÷ total warehouse hours)

12

30

60.5

13

Items picked per hour (items picked or packed ÷ total warehouse hours)

75.0

147.5

227.5

18

Dock to stock time, hours (receipt to storage time in hours)

2.8

1.0

0.9

20

Cost per order (annual labor and overhead costs ÷ total orders)

$132.53

$19.13

$5.45

14

On-time delivery rate, % (orders delivered on time ÷ total orders)

94.5

97.2

99.8

22

Order fill rate, % (orders filled complete ÷ total orders)

96.5

99.0

100.0

25

Order accuracy, % (error-free orders ÷ total orders)

95.5

99.0

99.8

25

Line accuracy, % (error-free lines ÷ total lines shipped)

98.0

99.5

99.9

17

Order cycle time, hours (order release to ship time)

12.0

24.0

31.5

18

Perfect order rate, % (perfect deliveries ÷ total deliveries)

93.2

97.5

98.6

16

Customer delivery lead time, days (receipt of order to delivery)

3.3

2.0

1.0

18

Total inventory turn rate, turns

4.0

14.3

24.0

23


Metric (Formula)

Electrical & Electronic Goods

25th percentile

Median

75th percentile

N=**

Storage space, sq. ft.

14,500

30,000

105,000

36

Storage space, cubic ft.

31,250

325,000

1,400,000

20

SKUs (Number handled or stored over the past 12 months)

863

9,250

46,250

30

Full-time equivalent employees (2005)

21.25

43.5

128.75

36

Age, years (Years operating under current ownership)

5.5

11

26.5

33

Warehousing costs as a % of shipment value, % [(labor + overhead) ÷ shipment dollar volume]

19.8

10.0

2.9

20

Annual storage utilization, % (occupied capacity ÷ total storage capacity)

65.0

75.0

90.0

23

Orders per hour (orders picked or packed ÷ total warehouse hours)

2.05

11

20

21

Lines picked per hour (lines picked or packed ÷ total warehouse hours)

6.5

20

35

21

Items picked per hour (items picked or packed ÷ total warehouse hours)

17.5

87.5

997.5

20

Dock to stock time, hours (receipt to storage time in hours)

6.0

2.0

1.0

23

Cost per order (annual labor and overhead costs ÷ total orders)

$156.25

$80.00

$22.55

18

On-time delivery rate, % (orders delivered on time ÷ total orders)

97.0

98.0

99.0

23

Order fill rate, % (orders filled complete ÷ total orders)

93.0

96.0

99.3

25

Order accuracy, % (error-free orders ÷ total orders)

99.0

99.1

99.9

25

Line accuracy, % (error-free lines ÷ total lines shipped)

98.3

99.3

100.0

24

Order cycle time, hours (order release to ship time)

1.0

4.0

18.0

24

Perfect order rate, % (perfect deliveries ÷ total deliveries)

97.0

99.0

1.0

22

Customer delivery lead time, days (receipt of order to delivery)

4.6

2.3

99.6

26

Total inventory turn rate, turns

4.0

5.0

7.0

23


Metric (Formula)

Apparel, Piece Goods & Notions

25th percentile

Median

75th percentile

N=**

Storage space, sq. ft.

27,500

140,000

284,620

33

Storage space, cubic ft.

78,750

648,000

3,000,000

12

SKUs (Number handled or stored over the past 12 months)

6,000

20,000

33,703

31

Full-time equivalent employees (2005)

61

180

350

33

Age, years (Years operating under current ownership)

4.25

6.5

19.5

32

Warehousing costs as a % of shipment value, % [(labor + overhead) ÷ shipment dollar volume]

16.8

10.5

4.0

24

Annual storage utilization, % (occupied capacity ÷ total storage capacity)

52.8

68.0

85.0

26

Orders per hour (orders picked or packed ÷ total warehouse hours)

6.5

12

54

21

Lines picked per hour (lines picked or packed ÷ total warehouse hours)

13.3

155

875

8

Items picked per hour (items picked or packed ÷ total warehouse hours)

56.3

145.5

262.5

20

Dock to stock time, hours (receipt to storage time in hours)

54.7

24.0

6.0

24

Cost per order (annual labor and overhead costs ÷ total orders)

$33.25

$21.04

$3.84

22

On-time delivery rate, % (orders delivered on time ÷ total orders)

95.0

98.0

99.6

29

Order fill rate, % (orders filled complete ÷ total orders)

95.8

98.8

99.4

22

Order accuracy, % (error-free orders ÷ total orders)

97.7

99.0

99.6

26

Line accuracy, % (error-free lines ÷ total lines shipped)

95.3

98.0

99.4

12

Order cycle time, hours (order release to ship time)

4.0

7.0

48.0

15

Perfect order rate, % (perfect deliveries ÷ total deliveries)

95.7

98.1

98.9

20

Customer delivery lead time, days (receipt of order to delivery)

10.0

8.0

4.0

15

Total inventory turn rate, turns

4.0

6.5

13.1

25


* For benchmarking purposes the medians offer a better indicator of typical performance, representing the midpoint of all responses. Although outlier responses were reviewed for plausibility, there are some unusually high and low metrics reported by respondents that skew the average. Means are included here for reference.

** As a rule of thumb, less than 30 responses is not statistically representative for a particular industry. Data should be used for informational or benchmarking purposes only.

Is Your Operation World Class?

Despite common activities—receiving, storage, picking and shipping—it's difficult to compare warehouse/distribution facilities against one another because of the wide variety of materials handled. But most managers have some idea how they stack up against their peers. When asked how much progress they thought their facilities had made toward world-class performance, over half (54%) of warehouse/distribution center managers believed they had made some progress. Three out of 10 think they have made significant progress or have achieved world-class performance levels.

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