Depending on your focus and priorities, you may choose different KPIs for your distribution center. However, some of the most popular ones include order fill rate, order cycle time, inventory accuracy, inventory turnover, labor productivity, and customer satisfaction. Order fill rate is the percentage of orders that are fulfilled completely and correctly from the available inventory. Order cycle time is the average time it takes from receiving an order to delivering it to the customer. Inventory accuracy is the percentage of items that are correctly recorded and located in your inventory system. Inventory turnover is the number of times your inventory is sold and replaced in a given period. Labor productivity measures the amount of output or value produced per unit of labor input, such as hours worked or employees. Lastly, customer satisfaction evaluates the degree to which your customers are satisfied with your service, quality, and delivery.