Time to Pick measures the duration from order placement to item retrieval, serving as a critical indicator of operational efficiency.
This KPI directly influences inventory turnover and customer satisfaction, impacting overall financial health.
A prolonged Time to Pick can signal inefficiencies in warehouse management or supply chain disruptions.
Conversely, a reduced timeframe enhances cash flow and supports strategic alignment with customer expectations.
Companies that optimize this metric often see improved forecasting accuracy and a stronger ROI metric.
Tracking this key figure enables data-driven decisions that can significantly enhance business outcomes.
High values for Time to Pick indicate potential bottlenecks in the picking process, which may lead to delayed shipments and dissatisfied customers. Low values reflect streamlined operations and effective resource allocation. Ideal targets typically fall below 30 minutes for standard orders.
We have 2 relevant benchmarks in our benchmarks database.
Source: Subscribers only
Source Excerpt: Subscribers only
| Value | Unit | Type | Company Size | Time Period | Population | Industry | Geography | Sample Size |
| Subscribers only | items per hour | average | items picked | warehouse/general fulfillment |
Source: Subscribers only
Source Excerpt: Subscribers only
Formula: Subscribers only
| Value | Unit | Type | Company Size | Time Period | Population | Industry | Geography | Sample Size |
| Subscribers only | items per hour | average | items picked | warehouse/general fulfillment |
Many organizations overlook the impact of inefficient picking processes on overall supply chain performance.
Enhancing Time to Pick requires a focus on process optimization and technology integration.
A leading e-commerce retailer faced challenges with its Time to Pick, averaging 35 minutes, which negatively impacted customer satisfaction and repeat business. The company initiated a comprehensive review of its warehouse operations, identifying key inefficiencies in the picking process. By adopting a new warehouse management system and implementing automated picking solutions, the retailer aimed to streamline operations and enhance performance.
Within 6 months, the Time to Pick was reduced to 18 minutes. This improvement was achieved through better inventory organization and the introduction of mobile picking devices that guided staff to the fastest routes. The company also invested in training programs, ensuring employees were well-versed in the new technologies and processes.
As a result, customer satisfaction scores improved significantly, with repeat purchase rates increasing by 25%. The enhanced efficiency not only boosted cash flow but also allowed the retailer to allocate resources toward expanding its product offerings. The success of this initiative positioned the company as a leader in operational excellence within the e-commerce sector.
This KPI is associated with the following categories and industries in our KPI database:
KPI Depot takes you from KPI intelligence to finished deliverable. Consultants, strategy teams, FP&A leaders, and analytics teams use it to answer the two hardest questions in performance management, what to measure and what the target should be, and then to produce the scorecard itself.
The difference is intelligence, not just data. Anyone can list metrics. Every KPI in KPI Depot carries 13 practical attributes, from formula and measurement approach to diagnostic questions, risk warnings, and Balanced Scorecard perspective, across 15 corporate functions and 153 industries. And every target you set is grounded in our database of 34,304 source-attributed benchmarks, each detailing metric value, company size, time period, industry, geography, sample size, and source. Benchmark data at this scale is otherwise the domain of research services costing thousands to hundreds of thousands of dollars per year.
When your metrics are selected, KPI Depot finishes the job: export an interactive Strategy Map, a Balanced Scorecard with formulas and tracking columns, or a CSV KPI pack, and go from research to working deliverable in hours instead of weeks.
Formerly the Flevy KPI Library, KPI Depot is trusted by teams at organizations including Accenture, EY, IBM, PepsiCo, Samsung, and Vodafone.
Got a question? Email us at [email protected].
Several factors can affect Time to Pick, including warehouse layout, picking technology, and staff training. A well-organized warehouse and efficient technology can significantly reduce pick times.
Technology such as automated picking systems and real-time inventory tracking can streamline the picking process. These tools enhance accuracy and speed, leading to improved operational efficiency.
A reasonable target for Time to Pick typically falls below 30 minutes for standard orders. However, top-performing companies often achieve times closer to 15 minutes or less.
Monitoring Time to Pick should occur regularly, ideally on a daily or weekly basis. Frequent tracking enables quick identification of trends and potential issues in the picking process.
Yes, longer Time to Pick can lead to delayed shipments, negatively affecting customer satisfaction. Reducing this metric can enhance the overall customer experience and encourage repeat business.
Staff training is crucial for improving Time to Pick. Well-trained employees can navigate the picking process more efficiently, reducing errors and speeding up order fulfillment.
Each KPI in our knowledge base includes 13 attributes.
A clear explanation of what the KPI measures
The typical business insights we expect to gain through the tracking of this KPI
An outline of the approach or process followed to measure this KPI
The standard formula organizations use to calculate this KPI
Insights into how the KPI tends to evolve over time and what trends could indicate positive or negative performance shifts
Questions to ask to better understand your current position is for the KPI and how it can improve
Practical, actionable tips for improving the KPI, which might involve operational changes, strategic shifts, or tactical actions
Recommended charts or graphs that best represent the trends and patterns around the KPI for more effective reporting and decision-making
Potential risks or warnings signs that could indicate underlying issues that require immediate attention
Suggested tools, technologies, and software that can help in tracking and analyzing the KPI more effectively
How the KPI can be integrated with other business systems and processes for holistic strategic performance management
Explanation of how changes in the KPI can impact other KPIs and what kind of changes can be expected
NEW Mapping to a Balanced Scorecard perspective (financial, customer, internal process, learning & growth)