Warehouse Efficiency (WE)
Measure of how effectively warehouse resources are utilized
FORMULA
WE = Orders Processed / (Labor Hours × Space Utilization %)
Alternate Calculations
Output-Based
Units Picked & Packed / Total Labor HoursSpace-Based
Orders Shipped / Available Warehouse Space (sq ft)What is Warehouse Efficiency?
Warehouse Efficiency measures how effectively your warehouse operates, considering output per labor hour, space utilization, and throughput. This metric helps identify productivity bottlenecks and optimization opportunities.
Common measures include orders picked per hour, units shipped per square foot, and cartons processed per labor hour. Efficiency directly impacts fulfillment costs.
Chart
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510orders · Week 4Warehouse Efficiency
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Sample Data
| week | orders | hours | rate |
|---|---|---|---|
| Week 1 | 450 | 120 | 3.75 |
| Week 2 | 480 | 118 | 4.07 |
| Week 3 | 520 | 125 | 4.16 |
| Week 4 | 510 | 120 | 4.25 |
Required Data Columns
Orders ProcessedLabor HoursSpace Utilization %