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Measuring WMS Efficiency for Multichannel Brands


Measuring WMS Efficiency for Multichannel Brands
Measuring WMS Efficiency for Multichannel Brands
July 3, 2024


For multichannel brands, trying to keep up in today's fast-paced retail environment, managing inventory and order fulfillment across all sales channels may be challenging. Losing track of inventories or customer dissatisfaction is a nightmare for any organization. Therefore, proper functionality in a WMS goes a long way in keeping sales operations smooth, inventory tracking proper, and order-processing timely. WMS for multichannel brands also includes customer satisfaction and increased operational acumen.

To measure WMS performance, there are various ways – such as tracking financial statements, reviewing performance and developing KPIs (Key Performance Indicators) for warehouse management.

The blog considers why WMS is so important for multichannel brands and introduces key metrics and strategies for gauging WMS efficiency. It ensures that your warehouse operations are optimally positioned to succeed across all channels by keeping track of past data and optimizing current data efficiently.


Improve WMS efficiency with proven strategies for brands


Understanding Multichannel Warehousing

Through multichannel retailing, selling via many diversified platforms such as online stores, physical locations, and third-party marketplaces, the warehouse operations face large demand. As consumers are now expecting a seamless shopping experience across all channels, effective warehouse management is paramount to meeting those demands. In multichannel warehousing, efficient handling of various order types, fulfillment speeds, and synchronization of inventory is expected across all selling channels.

That’s when some challenges may arise. Complexities like maintaining correct levels of multichannel inventory management across varied platforms to managing amplified volume and variety of orders may surface. Timeliness of fulfilment and delivery, based on the requirements of each channel, differ. This also includes sophisticated picking and packing processes, complex return management, and integration with sales and distribution systems in a multichannel setting. Hence, for customer satisfaction and operational efficiency, a well-optimized WMS is much needed for multichannel success.

Key Metrics for Measuring WMS Efficiency

1. Inventory

  • Inventory accuracy: As the term suggests, inventory accuracy means - the numbers or inventory amount tracked should match the physical quantity stocked in a warehouse. In case of value discrepancies between the number and the physical quantity stacked in the warehouse, the inventory accuracy KPI will showcase disparity.
  • Inventory turnover: An inventory management system will also calculate the inventory turnover. Inventory turnover is the frequency with which your inventory is sold within a specified period. A higher value is encouraged, as it shows reduced holding prices and storage.
  • Inventory to sales ratio: It gives the ratio of the remaining inventory at month-end to the sales achieved within the same month. This ratio helps visualize cash flow ahead of a problem and helps gauge the number of items leftover and sold at the warehouse.

2. Receiving KPIs

  • Receiving efficiency: The work productivity of the employees in your warehouse’s receiving area is called the receiving efficiency. It helps you consider whether to organize new training sessions or revise better processes.
  • Cost of receiving per line: This KPI is the overall amount spent on purchasing a line of products which are sent to your warehouse from vendors. If the price drops over time, it will showcase work efficiency. It is also a major component of real-time inventory tracking.
  • Receiving cycle time: This is the average time it takes to process the stock you received. Receiving cycle time entails accounting, sorting category-wise, and the stock’s storage.

3. Putaway KPIs

  • Accuracy rate: It determines what product proportions are put away accurately the first time. If the value shows 1, it means that there are no faults or errors.
  • Putaway cost per line: The total cost to put away a whole line of merchandise is called the putaway cost per line. It helps lessen expenditure on the total putaway processes. Just divide the overall putaway cost by the line-item amount to measure this metric.
  • Putaway cycle time: The average amount of time needed to put away a singular item from your inventory is known as the putaway cycle time. A shorter putaway cycle results in increased warehouse productivity. Rearranging items in your warehouse and raising worker productivity will help cut down on this time.

4. Order management KPIs

  • Total order cycle time: This KPI indicates the average time that an order takes to be shipped. The cycle begins when the customer orders an item(s) and ends after shipment. A short cycle will help ensure customer retention.
  • Fulfillment accuracy rate: It showcases the total number of successfully fulfilled orders. In case of a low rate, the management should be re-examined and revised.
  • On-time shipping rate: This KPI will show the efficiency of your shipping processes, even if you are dealing with multichannel brands. If your shipping rate is high, you can avoid customer complaints.
  • Cost per order: It provides you with the total cost of completing an order from a customer, starting from the time the order is placed and ending when it is delivered to the customer.
  • Rate of returns: This KPI mentions the percentage of customers who returned the products due to any factor whatsoever.

Take the First Step towards Enhanced WMS Efficiency


Metrics for B2B and B2C Order Picking

1. B2B Order Picking Metrics

  • Order Accuracy: Order accuracy is the degree of similarity between the contents of an order with the original customer order request. It calculates how frequently your business succeeds in filling an ordered request from a customer.
  • Order Cycle Time: This term denotes the average time taken to complete processing and fulfillment of an order. This includes the order placement of the customer until delivery. It helps calculate the orderliness of operations.
  • Line-Item Fill Rate: The percentage of order lines filled out of the overall order lines is known as the line fill rate.
  • Orders Per Hour: OPH is the average number of orders picked up every working hour. Before the order goes out of the warehouse, it is important for businesses to have an optimized process in place.
  • Labor Utilization: WMS for multichannel retail should also include this metric which calculates the billable hours out of the number of working hours of employees.
  • Cost Per Order: This KPI calculates warehouse labor costs, charges incurred during shipping, and other expenses needed to deliver the item.
  • Inventory Turnover Rate: One important indicator of how well a business sells and updates its inventory during a given time frame is called the inventory turnover rate (ITR).
WMS for Multichannel Brands

2. B2C Order Picking Metrics

  • Order Accuracy: The percentage of all orders that are correctly fulfilled and given to the customer error-free.
  • Order Cycle Time: This metric shows the average amount of time it takes to ship out an order from the moment it was placed.
  • Picking Rate: In a warehouse, the quantity of things picked each hour is referred to as the picking rate.
  • Orders Per Hour (OPH): This metric measures the number of orders picked by the employees each working hour.
  • Order Fill Rate: The percentage of customer orders that a company completes successfully from its stock within a given amount of time.
  • Customer Returns Rate: This metric lets you know how well your company promotes repeat purchases and manages to retain customers.
  • Cost Per Order: The entire cost benefited by a customer when they make a purchase is known as the cost per order. It is also a part of an automated WMS system.
  • Customer Satisfaction Score (CSAT): A survey technique, used to gauge how satisfied a consumer is with a company, items, or service.

Benefits of Ginesys WMS for Multichannel Brands

  • Enhanced order accuracy and inventory visibility: Ginesys’s warehouse management system manages order picking accurately, and real-time inventory and logistics updates for the stocks in hand across all channels.
  • Streamlined order fulfillment processes: For optimal multichannel inventory management and automation of workflows, order fulfillment processes are made speedy to make on-time deliveries and achieve customer satisfaction.
  • Improved scalability and adaptability to changing business needs: The WMS is equipped with Ginesys ERP to support your business as it grows, with flexible solutions to meet new market demands.
  • Training and onboarding strategies for warehouse staff: Comprehensive training programs and intuitive UI make onboarding easier for new employees, improving productivity overall.
  • Integration with other business systems for seamless operations: Ginesys WMS is integrated with enterprise resource planning, and the Ginesys One order management system called Browntape. This makes collaboration with other business systems seamless through this single platform.
  • Regular performance monitoring and optimization: Monitor and get data-driven insights to enable the optimization of warehouse performance in areas of improvement for peak efficiency.

Explore How Ginesys WMS Can Improve Your Multichannel Retail Efficiency


An effective WMS for multichannel retail is required for a multichannel brand to maintain inventory and process orders quickly. It may be overwhelming for organizations to cover all aspects of inventory management. Ginesys WMS offers operational excellence with order accuracy, real-time visibility of inventory, and integration with other business systems. Using such data-driven insights after training programs and performance monitoring can help optimize the warehouse automation efficiency to their best capability.

Ginesys is the way forward for business excellency. Get in touch today!