Benchmarking Success

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Inventory Accuracy Rate (Item Level)

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Description: The overall inventory quantity accuracy rate (A correct count is where the number and type of items [physical inventory] reconciles 100% with the computer inventory balances.) is often referred to as Inventory Record Accuracy (IRA).

Average Lead Time in DC

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Description: Tthe average lead time (warehouse cycle time) is from release of customer order into the DC (warehouse) to product being ready for despatch out of the DC (warehouse).

Time Product Availability for Sales after Receipted

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Description: Average time from inbound transport arrival to stock available for sale (Documentation is processed and stock put away or prepared for cross docking despatch).

Warehousing DIFOT

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Description: Warehouse service level (DIFOT), “in full on time” for ordered lines. ( If 9 lines (95 units) are despatched in full and on time from an order of 10 lines (100 units) then service level is 90% line fill, 95% unit fill and order fill is 0%.)

Inventory Items Incorrectly Located

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Description: Percentage of inventory items incorrectly located. The number of items incorrectly located divided by total number of items stocked.

Inventory Items with Incorrect Stock Balances

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Description: Percentage of items with incorrect stock balances .