* Is High or Low Best: Lower is Better
Stocking Cycle Time measures the speed and productivity with which inbound logistics teams stock shipments from suppliers. A high value for this KPI can lead to a number of different warehousing issues, such as the number of orders that are ready to be shipped on-time, warehousing space availability for subsequent incoming shipments and the overall flow of goods coming in and out of the warehouse. High values for this KPI may suggest that the company has inefficient shipment scheduling, poor warehouse space management or a generally ineffective inventory management methods. Minimizing Stocking Cycle Time will help reduce problems that may occur further down the supply chain, which will increase the rate of on-time shipments and, as a result, increase customer satisfaction.
The number of hours required to properly store materials or goods, from the time the materials/goods are received from the supplier until the time they are stored and recorded in inventory management tracking systems.
The times of two events are used to derive this KPI: (1) the time that the materials/goods arrive from the supplier, and (2) the time that the materials/goods are stocked in the warehouse and recorded into the inventory system. Stocking Cycle Time is the difference of these two times. In order to derive the mean (i.e., average) value for Stocking Cycle Time, take the sum of time for employees to stock all materials/goods and divide it by the total number of shipments received from suppliers.
Sum of Time to Stock Incoming Shipments / Total Number of Shipments Received
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