Warehouse Equipment Utilization Rate

Warehouse Equipment Utilization Rate

KPI Details

Warehouse Equipment Utilization Rate measures the performance and maintenance of equipment that is needed for warehousing and distribution operations. A warehouse's equipment utilization rate can be negatively impacted by old or poorly maintained warehouse equipment, ineffective demand planning or poor utilization of warehouse resources. A low value for this KPI may suggest that the company is overpaying for unnecessary equipment, the warehouse is understaffed or that the company has higher-level sales or turnover issues that must be addressed by management.

KPI Definition

The total amount of time that warehouse equipment is used divided by the total amount of time that the equipment is scheduled to be available for use over the same period of time, as a percentage.

KPI Best Practices

• Perform preventative maintenance on warehouse equipment on a regular basis
• Train equipment operators adequately to avoid accidents or improper use of equipment
• Forecast demand accurately to avoid scheduling equipment use when it is not needed

KPI Calculation Instructions Warehouse Equipment Utilization Rate?

Two values are used to calculate this KPI: (1) the amount of time that warehouse equipment is in use, and (2) the total amount of time that warehouse equipment is scheduled to be available for use during the same measurement period. Warehouse equipment should include forklifts, squeeze clamp lifts, jib cranes, unit load AGV’s, conveyors, etc. Only include equipment used in warehouses in this calculation. Do not include other distribution or manufacturing equipment such as trucks, trailers, lathes, grinders or hydraulic presses in this calculation.

KPI Formula :

(Amount of Time Warehouse Equipment is in Use / Total Amount of Time Warehouse is Scheduled to be Available) * 100