Order Picking Accuracy

Order Picking Accuracy

KPI Details

Order Picking Accuracy is an indicator of the controls set in place in order to ensure that shipments to customers contain the correct goods or materials. A low value for this KPI may suggest that the company has highly manual order picking processes, lacks quality control standards, matches order documentation to the wrong shipments, isn't adequately training employees or has not implemented controls or service level goals related to order picking accuracy. Inaccuracies related to order picking will also increase cycle times, increase the number of incorrect shipments sent out and, therefore, reduce customer satisfaction.

KPI Definition

The total number of orders picked and verified to be accurate prior to shipment divided by the total number of orders picked over the same period of time, as a percentage.

KPI Best Practices

• Pick items based on item code or UPC as opposed to location or other identification methods
• Only store one type of SKU in a certain inventory location
• Avoid paper picking when possible

KPI Calculation Instructions Order Picking Accuracy?

Two values are used to calculate this KPI: (1) the number of orders that are picked and verified to be accurate prior to shipment, and (2) the total number of orders picked for shipment during the same measurement period. This KPI should be measured prior to loading orders for delivery during a quality control or packaging phase. An order should be defined as one batch of products that is requested by the customer, and typically corresponds to one purchase order.

KPI Formula :

(Number of Accurate Orders Picked / Total Number of Orders Picked) * 100