How to Calculate Warehouse Space Utilization
Warehouse space utilization is a warehouse KPI (Key Performance Indicator). The warehouse space utilization KPI allows business owners to understand overall efficiency and recognize room for growth.
Other examples of warehouse KPIs include:
- Inventory-to-sales ratio
- Inventory turnover rate
- Receiving efficiency
- Put-away cycle time
- Picking efficiency
- Total order cycle time
- Accidents per year
To calculate warehouse space utilization, calculate the total warehouse size, your inventory cube size (including racking areas), and your storage cube size (total storage capacity of your warehouse). Dividing your inventory cube by your storage cube will determine how well your available storage space is being utilized.