The Essential Guide to Warehouse Reporting: From Data to Strategic Decisions

Warehouses are not only a place of storage and shipping, but also a highly competitive and fast-paced B2B marketplace. Warehousing is a central aspect of a supply chain. Regardless of how many orders you fill daily or how far you need to pump your goods across facilities, being conscious of the happenings within your warehouse can determine your bottom line as well as customer satisfaction.

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This is where warehouse reporting becomes essential. Warehouse reporting is the collection, analysis, and interpretation of data derived from warehouse operations in order to improve efficiency, reduce waste, and increase accuracy.

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It is the difference between solving problems and preventing them. With accurate data reports, businesses can make informed decisions, identify inefficiencies or problems early, and integrate warehouse operations with overall supply chain performance.

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According to a 2024 report, businesses that implemented next-generation supply chain capabilities such as comprehensive warehouse reporting and analytics enhanced their profitability by 23% due to better operation efficiency, inventory management and decision-making.

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However, many warehouses still rely on partially manual or underutilized reporting systems, which can reduce profitability due to delays, shrinkage, and other inefficiencies.

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This blog will explain warehouse reporting: what it is, the benefits of using it in your warehousing operations, the various types of reporting, and how to integrate reporting into your warehouse operations that suit your unique business size, whether you are an emerging SMB or a global enterprise.

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What is warehouse reporting?

Warehouse reporting is the formalized process of documenting and reporting on the activities of the warehouse, inventory levels, order accuracy, pick speeds, labor usage, and vendor performance, using reports and dashboards. Most of this reporting is done through a Warehouse Management System (WMS), an Enterprise Resource Planning (ERP) tool, or a Business Intelligence (BI) dashboard. 

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What are the characteristics of warehouse reports? 

• Data-driven: Warehouse reports are driven by real-time information or historical information gathered from warehouse activity. 
• Informative: Warehouse reports reveal trends, performance issues, and ways that it can improve. 
• Adaptable: You can customize reports on time range, warehouse, type of SKU, employee performance, and so on. 
• Actionable: A meaningful report denotes what ought to be done and not what has occurred.

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Warehouse reports and WMS dashboards

Warehouse reports and Warehouse Management System (WMS) dashboards are very similar tools, and are usually used together, but they perform different tasks:

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Therefore, while it is possible your dashboard alerts you that picking speed is slow this morning, a report will show the last 6 months of picking efficiency through varied shifts and would help clarify if the issue was simply a staffing issue.

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Its role in the broader supply chain

Warehouse reporting can be used as more than just an operations tool; it becomes a strategic tool. When reports on warehouse activity are merged into a larger supply chain reporting mechanism, warehouse data contributes to better decisions on demand forecasting, purchasing practices, and vendor management.

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For example: 

• Real-time inventory visibility to avoid over-buying or under-ordering policies by the procurement department. 
• A customer service team can utilize order fulfillment data to manage customer expectations and minimize complaints. 
• Cycle count variance reports can be used to validate internal shrinkage or identify vendor delivery discrepancies. 

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In summary, warehouse reporting is visibility as a basis for better business decisions.

Why is warehouse reporting important?

Warehouse managers struggle to make informed business decisions without accurate, timely, and relevant reports. Reporting creates transparency and accountability. A few examples of why reporting is important:

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1. Enhances operational visibility

How can you improve something that you can’t see? Reporting gives managers a broad overview of warehouse operations, from the speed at which orders are picked to how much idle inventory is present. With that visibility, you can make staff optimizations, warehouse configuration changes, or renegotiate contract terms/conditions.

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If your order cycle time has been trending upward, reporting helps identify the cause, such as idle packing operations, incorrect pick accuracy, or delayed inbound receipts.

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2. Enables data-driven decision-making

McKinsey reports that companies that make data-based decisions are 23 times more likely to outperform the competition in customer acquisition. Warehouse reports provide the data support you need to make informed decisions with confidence.

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For example: 

• Should you automate your picking system? 
• Is one warehouse performing better than others, and why is that the case? 
• Are returns higher on goods picked during the night shift? 

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Data provides the answer. 

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3. Aiding in controlling costs and waste

Excess inventory ties up capital. Errors in picking cause returns. Vendor performance causes stockouts. Each of these factors incurs significant costs. Warehouse reports make it visible.

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Cost-saving insights we see in reporting:

• Identifying slow-moving inventory that should be liquidated or bundled. 
• Identifying patterns in labor and inefficiencies in peak hours. 
• Tracking shrinkage from damaged or lost items.

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4. Enhances inventory accuracy

Inaccurate inventory numbers ripple through the entire supply chain. Customers get the wrong items. Stockouts happen more frequently. And forecasting becomes ineffective. However, a frequent cycle counting program and variance reports can help improve inventory accuracy and lower your audit's reconciliation time.

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5. Increases customer satisfaction

At the end of the day, all this reporting really has one goal: elevating the customer experience. On-time deliveries, accurate orders and real-time inventory visibility lead to delighted customers who receive what they ordered on-time, and without surprises.

Key warehouse report types

Warehouse reporting is much more than just a stock report. In today's competitive supply chain environment, decision-makers will use a variety of operational reports to become more efficient, reduce costs, and maintain a high level of customer service. The following lists the key types of warehouse reports, their objectives, and how each potentially improves performance.

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1. Warehouse summary report

What it is:

A summary report for warehouses provides a high-level overview of an organization’s current inventory position across all warehouse sites. This report typically includes SKU counts, total available units, trends in stock movement, and utilization (empty/disposition) of space.

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Why it matters:

The warehouse summary report is a broader, strategic view for operations managers and the executive team when they need to quickly gain visibility and see the overall health of inventory and spot potential stock imbalances, overstocking, or under-stocking across sites.

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Use case example:

A growing eCommerce business that has several different fulfillment centers can use a warehouse summary report to identify where they will be processing incoming shipments or relocating stock based on region.

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2. Order fulfillment report

What it is:

The order fulfillment report tracks customer's orders from the moment they are placed to the time they are shipped to the customer. It outlines key indicators like order accuracy, fulfillment processes, backorders, and delivery observations. 

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Why it matters:

Understanding how you fulfill your orders is critical to customer satisfaction and retention. This report assists operational teams in quantifying the diligence and efficiencies of picking, packing, and shipping orders. 

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Use case example:

If an order fulfillment report outlines repeated delays with orders shipping from one warehouse, it may indicate staffing shortages or perhaps poor warehouse layout of how the packing station is set up

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3. Vendor performance report

What it is: 

In this report, the level of reliability and consistency of vendors and suppliers will be assessed with particular attention to portraying major performance indicators that include the on-time delivery rates, order accuracy, lead time, and the rate of damage or discrepancies that may potentially derail the delivery of shipments. 

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Why is it important: 

That way, you want to ensure that supplier performance is reliable and that you are able to maintain your efficiencies in the warehouse and keep disruptions to a minimum. A low performance of the vendor may lead to a run-out of stock, and shutting down the line and sales. 

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Example of use case: 

Such a report can serve as leverage by a distribution center when renegotiating terms with the low-performing vendors, or to be aware of the high-performing vendors to keep sourcing them.

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4. Cycle count report

What it is:

A cycle count report captures the results of an ongoing check of a select group of SKUs for inventory accuracy. Cycle counts are performed periodically across all SKUs on a rotating basis to assess inventory accuracy, saving time and enabling near real-time updates, unlike disruptive full physical inventories.

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Why it matters:

Accurate inventory records are fundamental to every aspect of warehouse operations, from reordering to variations in fulfillment. The cycle count report allows for identification of stock discrepancies between the physical stock and the system stock used for planning and management, somewhere between costly errors and small-sample errors.

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Use case example:

After reviewing the cycle count report, the warehouse manager has received consistent variances on one or more groups of high-velocity SKUs, initiating the review of their storage and whether they may be at risk of pilferage.

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5. Warehouse expense report

What it is:

This report captures costs incurred by a warehouse for labor, utilities, equipment maintenance, packaging materials, and handling costs, presented in a format that can be broken down by cost center or activity type if desired.

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Why it matters:

Cost control is mission-critical to profits - knowing where costs are incurred, what resources are being consumed, and where the expenses are greatest allows finance and operations teams to manage costs.

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Use case example:

An organization may see in the expense report an increase in overtime wages and utilize the information to initiate rescheduling of shifts or automation in high labor areas.

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Best practice: Use layered reporting

• Instead of having a single report for all purposes, most mature warehouse operations will use layered reporting, combining detailed reports with real-time dashboards.
• Dashboards provide operational teams with instant visibility (e.g., today’s orders, stock-outs, pick rates).
• Reports give managers reliable insight into key metrics on a weekly or monthly basis, helping to identify trends and improve performance in the long term.

Must-have metrics in warehouse reports

Reports give structure to the metrics you need for scheduling and taking action. Here are the most important warehouse metrics to know, along with industry averages and calculations ahead.

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1. Inventory turnover rate

This indicates the number of times the inventory is taken and used during a certain time period.

• Formula: Cost of goods sold ÷ average inventory value.
• Benchmark: The industry ratio will be acceptable at 2-4; however, different industries will be different.

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Low ratios indicate you have either overflow stock or sluggish goods, whereas high ratios indicate that you could be recording great sales or insufficient stock to fill demand. Monitoring this measure will enable you to achieve an optimal amount of cash flow and space.

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2. Order accuracy rate

The order accuracy rate metric shows what percentage of orders are shipped with no errors (loss can be a wrong item or wrong quantity).

• Formula: (Error-free orders ÷ total orders) × 100.
• Benchmark: Top-tier operations achieve a 99.5–99.9% accuracy.

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Such precision is an impressive demonstration of what automation and standardized processes can do in contemporary fulfillment.

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3. Order cycle time

Order cycle time measures the amount of time the order takes to go from placement to shipment.

• Formula: Total time order is processed ÷ number of orders.
• Benchmark: Leading e-commerce and retail fulfillment centers aim to fulfill orders within 24–48 hours, though fulfillment cycles can be longer in B2B or bulk logistics operations.

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Order cycle time is important because a shorter cycle time means a shorter delivery time and more satisfied customers.

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4. Picking and packing efficiency

This measures how many orders/units are picked and packed per labor hour.

• Formula: Total units picked or packed ÷ total labor hours.
• This varies greatly based on a warehouse's layout (or design), range of SKUs (stock keeping units), and equipment used by the operation. 

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Efficiency will improve based on decisions regarding slotting, the training of labor, and the use of automation.

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5. Carrying cost of inventory

This measures the total cost to hold inventory that hasn't been sold.

• Formula: (Inventory holding cost ÷ total inventory value) X 100.
• Components of holding cost: storage, insurance, depreciation, and obsolescence.

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Balancing holding costs enables organizations to more effectively evaluate inventory decisions, including safety stock and product lifecycle management.

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6. Return rate

Return rate shows the percentage of orders shipped that customers returned. 

• Formula: (Returned orders ÷ Total orders shipped ) X 100.
• As a benchmark, a B2B return rate below 5% is generally acceptable, though this can vary significantly by industry, for example, tools and equipment may see returns under 1%, while fashion or custom goods may exceed 5%.

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Higher return rates may indicate picking mistakes, wrong product descriptions, or packaging problems.

Additional metrics for operational excellence

As your operations mature, you will be able to introduce more KPIs to follow and identify additional points of optimization.

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• Backorder rate = (number of backordered units ÷ total orders) × 100.

A high backorder rate may reflect poor vendor delays or forecasting.

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• Warehouse capacity utilization = used storage ÷ total available capacity × 100.

In most warehouse facilities, ideal performance is achieved when they are running at 85-90 percent capacity. High levels of utilization can affect movement, and inefficiencies may also increase as utilization approaches 100 percent.

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• Dock-to-stock time = average time from receipt of goods to shelving.

The lower this number, the quicker inventory becomes available for sale.

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• Labor cost per order = Total labor cost ÷ number of orders fulfilled.

This metric will give you important data on controlling your operational expenses as your volume grows.

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• Perfect order rate = % of orders delivered complete, on time, without damage, correctly fulfilled.

This is a composite KPI, measuring the customer's overall satisfaction with your brand, along with the internal processes that support it.

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How to interpret and act on metrics

Tracking metrics is essential; however, their effective application is what drives meaningful change. Here are five practical ways to use these KPIs effectively:

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1. Set realistic goals

Use industry benchmarks as a starting point, but adapt them to your own warehouse size, industry, and product mix. A good goal is measurable, attainable, and time-bound.

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2. Segment your data

It is essential not to be narrow-minded and merely consider warehouse-wide metrics. Segment performance by SKU, product category, shift, or team. This uncovers underlying inefficiencies, such as a particular SKU that consistently causes errors, and so on.

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3. Early detection and identification of bottlenecks

If your weekly cycle time for orders increases, is that a personnel issue? Is it because of a new vendor? Data enables you to follow the causes.

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4. Run trend analyses

Apply monthly or quarterly reporting to detect seasonal changes. This can help you be proactive about any anticipated increase in labor or storage capacity, and you can stock up on holidays or anticipate them.

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5. Link business goals to metrics

KPIs must capture actual business targets, e.g., reducing labor costs by 10%, increasing the conversion rate of improved orders by 1%, or increasing turnover to release capital.

Reporting based on business size

The reporting of warehouse activity is not a standardized process. The way a company gathers, analyzes, and utilizes warehouse data is determined by factors including the company's size, order volume, operational complexity, and available resources.

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A startup serving 100 orders per month does not require the same reporting detail or infrastructure as a global logistics operator shipping thousands of SKUs on multiple flights daily. What follows is a description of how warehouse reporting generally develops over various stages of growth, along with the main focus, tools, and considerations at each level.

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1. Small businesses

Profile:

• Typically, a single warehousing or home-based operation.
• Low to moderate order volume (up to a few hundred per month).
• Limited staff and budget.
• Manual or semi-digital inventory control.

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Reporting focus: 

The reporting goal for small businesses should be to improve inventory visibility and reduce operation errors. Most of these organizations use spreadsheets, basic inventory management tools, or entry-level WMS tools to track most of their data.

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Core reports to focus on:

• Inventory summary report.
• Order accuracy/fulfillment report.
• Receiving and damaged goods report.
• Basic expense report.

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Possible solutions:

• Basic inventory management software (e.g., Zoho Inventory, inFlow, QuickBooks Commerce).
• Spreadsheet reporting with Google Sheets or Excel.
• Basic integrations with Shopify, Etsy, or Amazon.

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Challenges and recommendations:

Challenge: Data entry mistakes and variability in records.

Recommendation: Generate and utilize structured templates and automate your standard data extraction from your order/selling platform.

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Challenge: Limited time to complete a thorough report.

Recommendation: Use your WMS or simple macro to automate your weekly summaries and cycle counts.

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Use case:

A small handcrafted goods brand uses Zoho Inventory to prepare a weekly order accuracy report and stock report, which assists them in avoiding significant stockouts during seasonal volume increases.

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2. Mid-size businesses

Profile:

• A warehouse or fulfillment center.
• Moderate to high order volume (thousands per month).
• Dedicated operations and logistics personnel.
• Using WMS and ERP/cloud-based systems.

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Reporting focus:

At this point, companies need better real-time visibility, improved inventory turnover tracking, and closer integration of their systems. Reporting is both operational (focused on daily execution) and strategic (emphasizing monthly performance reviews).

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Core reports to prioritize:

• Inventory turnover and aging reports.
• Order cycle time and on-time shipping.
• Warehouse expense reports by category.
• Space utilization.
• Vendor performance.

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Recommended tools:

• Cloud WMS solutions, such as Cin7, ShipBob, or SkuVault.
• Native reporting systems that do not require integration (e.g., Odoo, NetSuite).
• Custom dashboards, such as Power BI or Looker Studio, are BI tools.
• Accounting, CRM, and shipping integration.

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Challenges and recommendations:

Challenge: Departmentalised data.

Recommendation: Interlink sales, purchasing, and warehousing with APIs or middleware

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Challenge: Lack of standardized KPIs.

Recommendation: Establish specific and consistent tracking for a core set of KPIs (eg, picking accuracy, fulfillment speed)

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Use case example:

One of the local electronics distributors is using a Power BI dashboard linked to their WMS and CRM. This allows warehouse managers to track current activities and sales teams to inspect stock replenishment.

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3. Enterprise-level businesses

Profile:

• Multiple, internationally based operations.
• Complex product catalogs (with thousands of SKUs).
• Large volume in terms of orders with different channels.
• IT specialists and specialized analytics departments.

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Reporting focus:

Businesses emphasize profound analysis, prediction, automation, and regulation. Reporting must be specific, scalable, and available to various stakeholders across departments and geographical locations.

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Core reports to prioritize:

• Predictive inventory forecasting.
• Productivity and employment of labor.
• Supply chain performance (delay times, bottlenecks, lead times).
• Returns, shrinkage, and damage analysis.
• Audit reports and compliance reports.
• Service KPIs, business unit, or region KPIs.

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Recommended tools:

• Enterprise-level WMS (e.g., Blue Yonder, SAP EWM, Manhattan WMS).
• Platforms that integrate ERP solutions into analytics (e.g., SAP S4/HANA, Oracle ERP Cloud).
• High-end BI and AI analytics systems (e.g., Tableau, Qlik, Alteryx).
• The real-time traceability RFID and IoT infrastructure.

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Challenges and recommendations:‍

Challenge: Data overflow and data inconsistencies.

Recommendation: Implement the single source of truth with a data warehouse or a data lake.

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Challenge: Complex reporting requirements across roles.

Recommendation: Role-based dashboards such as an executive dashboard, a step supervisor dashboard, and an analyst dashboard.

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Use case example:

Many international 3PL companies have already installed IoT sensors at every single fulfillment point and channeling real-time temperature and activity monitoring data to their enterprise BI tool. This allows SKU-level, location, and client-level reporting, leading to better SLA compliance and client satisfaction.

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Scaling your reporting practices

Warehouse reporting practices must evolve with your business; it's an iterative process, not a one-time implementation. Here's how to scale your reporting practices:

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Warehouse reporting should not be considered as a one-time installation regardless of the size of the company, your reporting requirements will change as your business develops. The most effective companies are obligated to repeat their reporting exercises, look at their KPIs, and implement changes in technology to remain relevant in a market that is unstable.

Tools and technologies powering warehouse reporting

Warehouse reporting is only as good as the underlying technology that supports it. Customers' expectations continue to rise, and supply chains become more complicated. Companies can no longer depend on manual reporting processes or ineffective/ disconnected systems.

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Today, technologies such as warehouse management systems (WMS), business intelligence (BI) tools, real-time visibility solutions, and system integrations form the foundation of effective warehouse reporting. Here’s a closer look at the most fundamental tools and technologies that help facilitate real-time, accurate, and actionable warehouse insights.

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1. Warehouse management systems (WMS)

What is it:

A WMS is a software solution that is meant to assist with warehouse operations and to optimize those daily tasks. It will track inventory, direct warehouse processes, receive, put-away, pick, pack, and ship, and also provide operational reporting.

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How it supports reporting:

Most WMS come with the functionality to generate built-in reports, which allows the user to keep track of metrics (or process) such as inventory level, stock movements and order status. These systems can help eliminate reliance on spreadsheets and manual entry as part of reporting functions, creating data that is more reliable and available.

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Common features:

• Real-time inventory tracking.
• Barcode or RFID scanning interface.
• Replenishment alerts.
• Standard and custom report generation.
• Historical trend reporting.

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Examples:

Examples of WMS are Fynd WMS, Oracle NetSuite WMS, Fishbowl, Zoho Inventory, and Manhattan Associates, depending on your business size and complexity. 

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Use case:

One example is a mid-sized distributor who utilized WMS to generate a report for weekly cycle counts and monthly order accuracy trends that enabled them to reduce discrepancies by 25 percent over two quarters.

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2. Business intelligence (BI) platforms

What it is:

Business Intelligence (BI) tools transform raw operational data into actionable dashboards, charts, and reports. BI systems are typically integrated with your WMS or ERP and are primarily designed for analysts and operations managers.

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How it supports reporting:

BI tools gather data across all systems (WMS, ERP, and shipping carriers and sales platforms) to compile mixed-data displays. BI dashboards, unlike WMS standard reporting, allow businesses to analyze performance at a deeper level and scenario modelling.

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Common features:

• Drag-and-drop report builders.
• Dashboards show real-time data.
• Custom filtering and data slicing.
• Trend forecasting.
• Sharing and automation options.

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Examples:

• Microsoft Power BI
• Tableau
• Looker
• Qlik Sense

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Use Case:

A retailer integrates Power BI into its WMS and eCommerce platform and looks for return rates by SKU and warehouse. The retailer identified problem SKUs and warehouses, prompting focused quality checks that led to an 18% reduction in reverse logistics costs.

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3. Real-time inventory tracking technologies (RFID & IoT)

What it is:

Real-time warehouse monitoring of goods movement and condition using RFID (Radio Frequency Identification) and IoT (Internet of Things) sensors/systems. Automated, contactless, and data-captured without human interaction.

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How it supports reporting:

RFID tags can be placed on individual products, cartons, or pallets to receive instant inventory updates. IoT can also track environmental data (temperature, humidity, etc.), which is critical to moving goods that require tracking of their condition (e.g., edible items with shelf-life).

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Common benefits:

• Real-time location visibility.
• Reduction of manual scanning errors.
• Condition monitoring for cold storage or pharmaceuticals.
• Improved traceability and compliance.

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Use Case:

A pharmaceutical warehouse utilizes RFID to automatically monitor inbound shipments and temperature-sensitive inventory. This data would automatically fill compliance and receiving reports, eliminating the need for manual input.

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4. Integration with ERP and eCommerce platforms

What it is:

ERP (Enterprise Resource Planning) systems unify data across a number of essential business functions like finance, sourcing, sales, and warehousing. eCommerce platforms like Shopify, Magento, and Amazon Seller Central generate important transactional data in a similar way. 

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How it supports reporting:

Warehouse reporting adds a great degree of richness when all sales, financial, and information across systems with your WMS are integrated. The end result is that you gain end-to-end visibility, linking inventory availability to all factors, such as order volumes, working capital, vendor performance, sales, and customer analytics.

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What to consider when integrating:

• API or native connectors to pass and draw data among systems.
• Synchronization of order information in real-time with inventory and fulfilment.
• Unified/Consolidated dashboards that provide a look into sales performance and warehouse performance.
• Warnings of misalignment and/or discrepancy.

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Examples:

• SAP S/4HANA for enterprise.
• Odoo for mid-sized.
• QuickBooks Commerce for small business inventory & order management.
• Cin7, DEAR Systems, and SkuVault for cloud-based inventory and warehouse reporting.

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Use case:

A D2C brand has its Shopify and QuickBooks integrated. When the WMS is linked to Shopify and QuickBooks, the finance team can automatically generate reports on a cost-per-order, and the operations team uses a unified perspective of all other sales channels in monitoring the accuracy of the fulfillment.

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5. Mobile devices and handheld scanners

What it is:

Apps, tablets, mobile barcode scanners, and smartphones provide warehouse workers with the opportunity to input and capture data on the warehouse floor.

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How it supports reporting:

The reports will be up-to-date and reflect current operations since all information about activities (e.g. receiving, picking and cycle counts) at the point of activity will be captured in real-time. This reduces wastage of time and serves to be more accurate.

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Benefits:

• Faster inventory updates.
• Decreased data entry errors.
• More productive labor.
• The ability to generate reports from any device.

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Use case:

A third-party logistics (3PL) provider outfitted workers with mobile scanners, which helped minimize the time associated with manual entries and increased real-time visibility and accuracy in picking, directly impacting the quality and timeliness of daily operational reports.

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Bringing it all together

The real value of warehouse reporting lies not in individual parts, but in the way they interact. A typical stack of reporting in a modern warehouse includes:

• WMS handles day-to-day functions as well as baseline information.
• A synchronization of sales and financials is achieved through either the ERP or the eCommerce solution.
• BI tools take complex data and generate actionable knowledge.
• RFID and IoT provide real-time tracking and traceability.
• Mobile reporting puts the tools in the hands of all operators.

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When a company invests in a suite of integrated technologies, it can move from reactive decision-making to proactive determination and optimization, resulting in quicker decisions, leaner operations, and better outcomes for customers.

How to get started with warehouse reporting

Utilizing warehouse reporting effectively is more than just using your warehouse management system to create reports. It's about building a reporting framework that helps drive decision-making, identifies inefficiencies, and provides support for long-term growth. The following step-by-step framework should help businesses, regardless of their size (small, mid-size, or enterprise), understand and begin the process with clarity, control, and success.

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1. Assess current data infrastructure and reporting practices

Before using new reporting tools or processes, evaluate the current state of your warehouse data. Ask yourself the following:

• What systems are being used now (spreadsheet, ERP, WMS)?
• How is data collected, manually or via an automated scanning system?
• Is there any duplication, delay, or inaccuracy in the way information is recorded? 

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Doing an internal audit on the accuracy of inventory data, past order information, and reports will help reveal gaps in visibility and achieve success in reducing changes. An audit can be particularly beneficial when your teams are working on segregated systems or when using a rudimentary spreadsheet system with hardly any transparency and insight into what happens in their operations.

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2. Define business goals and reporting KPIs

When building warehouse reports, it's crucial to align with broader business objectives. For example, if the goal is to reduce carrying costs, it is important to establish KPIs to help achieve that goal. Each goal should be addressed in terms of KPIs.

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Typical metrics include the following:

• Inventory turnover ratio
• Order accuracy
• Order cycle time
• Carrying cost of inventory
• Picking and packing efficiency

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Having KPIs gives your reports focus so they are actionable and not just raw data. It will also align warehouse staff, procurement, logistics, and finance on what success looks like.

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3. Select the right tools and systems

Your company size, reporting complexity, and the technology you already have in place will dictate your tool selection. You may want to track your locations and inventory movements with a simple app, or perhaps examine whether to implement a complex warehouse management system, and then integrate it all with BI tools like Power BI or Tableau.

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Key considerations when evaluating tools include:

• Does it integrate with existing ERP or eCommerce platforms?
• Can it sync data in real-time?
• Will it allow you to customize report formats, and when they get sent out?
• Is it easy enough for non-technical staff to use?
• Will it scale with you as your operations grow?
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In these situations, you may enjoy layer tools. For example, using a WMS just to capture your transaction data and, at the same time, report on this data using a BI solution.

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4. Train teams and standardize reporting formats

Even the most advanced technology will be inadequate if your warehouse employees and decision-makers do not know how to use it. Take the time to train your teams on how to interpret reports, respond to data trends, and generate insights. 

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By standardizing and templating reports with a set frequency (e.g., daily inventory snapshots, weekly cycle count summaries), you will be able to standardize information across departments or locations. Templating and automating reports will reduce the chance of error and save time.

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5. Establish a regular reporting cadence

Reporting must not be a one-time event, but rather a routine activity as part of your warehouse's operating rhythm. The frequency with which you report should be based on the frequency of the operations:

• Daily: Picking/packing performance, out of stock, damage to goods.
• Weekly: Cycle counts, labor productivity, footprint utilization.
• Monthly/Quarterly: Inventory turnover, return percentage, vendor performance.

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By reviewing these reports periodically as a group in your management meetings, established patterns will emerge, which can lead to improvement opportunities and/or decisions related to continuous improvement.

Common challenges and how to overcome them

1. Data silos and inaccuracies

Many organizations manage disparate data for their WMS, ERP, and all departmental spreadsheets, leading to duplicative records, misleading inventory balances, and invalid reporting.

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Solution: Consolidate all core systems and sync all systems. Apply standard item codes, consistent naming standards, and enforce validation of records across solutions.

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2. Lack of standardization

Different teams may apply different definitions to the same metrics, like "cycle time" or "inventory on hand," leading to no trust in the data.

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Solution: Define, vet with stakeholders, and publish reporting definitions and templates. You need to become "aligned" across departments. You must first agree upon and schedule tactical executive reviews to focus on consistent system and reporting practices.

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3. Resistance to new systems

Withdrawal or resistance to new reporting technologies can be observed in employees who have been trained to use a manual process or were already using a legacy tool, due to the view that these new reporting technologies are more complicated to use or that they entirely alter how they work.

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Solution: Incorporate the end users at the earliest time of the implementation process. Conduct an end-user educational session, which also includes hands-on activities to show that reporting tools can also improve work performance (reducing mistakes or automating manual procedures). 

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4. Limited reporting or analytics skills

There could be some teams that cannot interpret the warehouse reports or do not know how to utilize BI tools.

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Solution: Provide basic data literacy opportunities and create dashboards with an easy-to-use interface for those who require the use of the information. Start with the basic KPI reporting and allow the team to develop familiarity with the reports first, while building in more complexity.

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Warehouse reporting can convert warehouse operations into strategic assets. Systematic reporting can provide efficiency, cost control, accuracy, and client satisfaction by offering insights across various areas, from inventory snapshots and fulfillment statistics to vendor performance and cost metrics.

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The appropriate tools to deliver these reporting requirements are available, ranging from spreadsheets to a full WMS (Warehouse Management System) to Enterprise ecosystems. As warehouse facilities and processes evolve, so too can the reporting they utilize.

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Reporting creates measurable value for warehouse teams once objectives are established, they are measured consistently, and a review process is followed to measure and create an understanding of progress.