What are good Pick and Pack KPIs – a B Corp Perspective 

November 14, 2022

What are good KPIs? We’ll find out, but first, what exactly is a KPI? According to Google, “KPI stands for key performance indicator, a quantifiable measure of performance over time for a specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions.” In other words, KPIs are closely related to common sense.

  • What do we want to achieve?
  • How do we analyze and measure our progress toward that goal?

 

According to conveyco.com there are two rules for selecting the right KPIs:

  • KISS: You’ve likely heard the acronym, “Keep it simple, stupid.” This phrase rings true for KPIs. Make it as easy to understand as possible, so your employees will be clear about what they need to do.
  • SMART KPIs: SMART stands for specific, measurable, attainable, realistic, and timely. Is your KPI all of these things?”

The article goes on to say, “Basing your choice on simplicity rather than strategy won’t, in most cases, help you accomplish anything. Assess every KPI based on its relationship to your overall goals.” Also, to avoid the most common mistakes, don’t necessarily do what you’ve always done.

 

KPIs for Pick and Pack

A good measurement would be to track how much time it takes after an order is placed, for it to reach the customer. How many errors have been made (perfect order rate), and how many backorders (backorder rate.)

Every warehouse will have performance indicators measuring accuracy, efficiency, costs, etc. At AMS our operations performance has always been measured and analyzed and continuously improved.

 

KPIs for a B Corporation

For us, there is an extra obligation to determine what we want to achieve.

As a B Corp, AMS has several factors in our KPI measurement – we want to serve our clients, we want to value our employees, we want to protect the environment, we want to benefit our community and we want to achieve financial profit. These goals are balanced in all of our decision-making.

How do we analyze and measure our progress toward our goal? We look at our teams, observe their efforts, and aim to achieve.

 

AMS KPIs – More than Just Numbers

We have an excellent Client Services Team that looks out for our clients; we have a wonderful Human Resources Team that looks out for our employees with free education and excellent benefits; we also have a Safety Team that has one of the best records around, and we have a Green Team that organized a vanpool, and a purchasing department focused on Green buying.

Recycling is a high priority. What about the community? We have a Volunteer Team that steps in to help with holiday meals, clothing, clean-ups and so much more. In addition to these things we have a great Executive Team and we bring in financial profit.

In the fulfillment industry key performance indicators (KPIs) answer questions about order fulfillment or warehouse operations. AMS demonstrates that a company can be fully focused on order fulfillment and warehouse operations and still be responsible for a whole lot more.