procurement level

The procurement level is a key indicator in warehousing and supply chain management. It indicates the percentage of available item quantities in a warehouse or distribution system in relation to the ordered item quantities. This key figure is an important indicator of the efficiency and performance of warehouse management.

The procurement ratio is calculated by dividing the available item quantities by the ordered item quantities and then multiplying by 100 to obtain the percentage. A high procurement rate indicates that the ordered items are available in the warehouse in sufficient quantities to meet demand, while a low procurement rate may indicate shortages or inadequate inventory management.

A high procurement level can help to increase delivery readiness and improve customer supply, as the required items are always available. This can lead to an increase in the service level of warehousing, as customer requests can be fulfilled quickly and reliably.

The procurement level is closely related to other key figures in warehousing, such as inventory turnover and range. Efficient warehouse management strives for an optimal procurement level that ensures a balance between stock levels and orders in order to minimize storage costs while ensuring a high level of delivery readiness.

Overall, the procurement level plays a central role in the control and optimization of warehousing processes. By monitoring and analyzing this KPI, companies can effectively manage their stock levels and ensure a high quality of service for their customers.