Review-based method for evaluating key performance indicators: an application on warehouse system

Abstract

This paper presents a procedure for selecting, evaluating, and ranking the key performance indicators (KPIs) in the context of warehouse systems. The method aims to help warehouse managers identify and prioritize KPIs most relevant to their business objectives and performance goals, ultimately driving continuous improvement in warehouse performance. The paper provides three main scientific contributions: (i) a selection composed of 70 KPIs extracted from the analysis of 203 scientific articles and clustered according to their business and sustainability objectives, (ii) a KPI ranking based on four different metrics measured analyzing 585 scientific papers from Scopus and, finally, (iii) a fifth metric, measured trough a survey submitted to 15 industrial experts from as many different Italian companies, that is added to improve the ranking system. As a part of the method applied to a case study, the paper provides a comprehensive review of the current scientific literature and industrial sector state of the art on warehouse KPIs. This article proposes an overview of the most used KPIs in research and industry, a support for understanding formalizing definitions, and a guide on how they can be measured and used to manage warehouses.