- OTIF: On Time In Full
- The share of orders delivered on the promised date, complete, with nothing short or substituted. The single best summary of whether distribution is keeping the promise sales made. Measured per order and per channel, foodservice and HoReCa customers watch it closely.
- Fill rate
- The share of ordered units (or lines) shipped from stock on the first attempt. Low fill rate with high inventory is the classic symptom of broken replenishment: the stock exists, just not the right stock.
- Dock-to-stock time
- Elapsed time from a vehicle arriving at receiving to the goods being put away and available to promise. Long dock-to-stock hides inventory that is physically present but commercially invisible, and stalls first mile flow into the building.
- Lines picked per hour
- Picking productivity: order lines completed per labour hour. Only meaningful alongside pick accuracy and the order profile, a site picking full pallets and a site picking single e-commerce units should never be compared raw.
- Order cycle time
- Time from order release to dispatch. The internal half of the delivery promise; when it grows, cut-offs move earlier and last mile options shrink.
- Inventory accuracy
- Measured by cycle counting: locations where the physical count matches the system record exactly, divided by locations counted. Every replenishment, slotting and service decision inherits the quality of this number.
- Reorder point (ROP)
- The stock level that triggers a replenishment order: expected demand during the supplier lead time, plus safety stock. Set from data, reviewed as demand shifts, not set once by feel.
- Safety stock
- The buffer held against demand and lead-time variability. Too little and fill rate breaks; too much and capital sleeps on shelves. It belongs on SKUs in proportion to their variability, not spread evenly.
- Cycle counting
- Counting a planned slice of locations every day instead of an annual wall-to-wall stocktake. Done properly, it both measures inventory accuracy and continuously corrects it, and finds the process errors causing the drift.
- Slotting
- Deciding which SKU lives where, based on velocity, size and handling. Good slotting shortens travel and lifting; stale slotting is invisible overtime, paid every shift.
- Put-away
- Moving received goods from the dock to their storage location and recording it. Put-away discipline decides dock-to-stock time and whether picking can find what receiving accepted.
- Cost per line shipped
- Total warehouse operating cost divided by lines shipped, the per-unit efficiency figure that lets a 3PL price honestly and lets any operation compare periods, shifts and sites on one scale.