Key Responsibility Areas (KRAs) & Key Performance Indicators (KPIs) for Stores Person
1. Inventory Management
KRA: Responsible for overseeing the organization’s inventory to ensure adequate stock levels and prevent stockouts.
Short Description: Manage and optimize inventory levels efficiently.
- 1. Average Inventory Turnover Rate
- 2. Stock Accuracy Percentage
- 3. Order Fulfillment Accuracy
- 4. Stockout Rate
2. Receiving and Dispatch
KRA: Handle the receipt of goods, inspect quality, and ensure accurate dispatch of orders.
Short Description: Efficiently manage goods receipt and dispatch processes.
- 1. On-time Receipt Rate
- 2. Receiving Error Rate
- 3. Dispatch Accuracy
- 4. Turnaround Time for Dispatch
3. Stock Replenishment
KRA: Monitor stock levels, forecast demand, and initiate replenishment orders to avoid stockouts.
Short Description: Maintain optimal stock levels through timely replenishment.
- 1. Reorder Point Accuracy
- 2. Lead Time for Replenishment
- 3. Replenishment Cost Efficiency
- 4. Stock Holding Cost
4. Quality Control
KRA: Ensure all received goods meet quality standards and conduct quality checks before dispatch.
Short Description: Uphold quality standards in all incoming and outgoing goods.
- 1. Quality Inspection Compliance
- 2. Return Rate due to Quality Issues
- 3. Customer Feedback on Quality
- 4. Compliance with Quality Standards
5. Vendor Management
KRA: Build and maintain relationships with suppliers to ensure timely deliveries and favorable terms.
Short Description: Foster positive relationships with suppliers for efficient procurement.
- 1. Supplier Performance Rating
- 2. On-time Delivery Rate
- 3. Cost Negotiation Effectiveness
- 4. Vendor Communication Efficiency
6. Documentation and Record Keeping
KRA: Maintain accurate records of inventory, transactions, and supplier information for reference and audit purposes.
Short Description: Ensure thorough documentation and record-keeping practices.
- 1. Documentation Accuracy Rate
- 2. Audit Compliance Score
- 3. Record Retrieval Time
- 4. Data Security Measures
7. Health and Safety Compliance
KRA: Adhere to health and safety guidelines in all warehouse activities to ensure a safe working environment.
Short Description: Maintain a safe and healthy workplace for all employees.
- 1. Safety Training Completion Rate
- 2. Incident Report Rate
- 3. Safety Equipment Maintenance
- 4. Compliance with Safety Regulations
8. Cost Management
KRA: Implement cost-effective measures in inventory management and procurement processes to optimize expenses.
Short Description: Control costs while maintaining operational efficiency.
- 1. Inventory Holding Cost Reduction
- 2. Procurement Cost Savings
- 3. Cost per Order Processed
- 4. Budget Variance Analysis
9. Process Optimization
KRA: Identify areas for process improvement and implement efficiency-enhancing measures in stores operations.
Short Description: Continuously improve processes for better performance.
- 1. Process Cycle Time Reduction
- 2. Error Reduction Rate
- 3. Process Automation Implementation
- 4. Employee Productivity Increase
10. Team Collaboration
KRA: Work collaboratively with other team members and departments to ensure seamless operations and customer satisfaction.
Short Description: Foster teamwork and communication for overall success.
- 1. Cross-Departmental Collaboration Effectiveness
- 2. Team Performance Improvement
- 3. Customer Satisfaction Ratings
- 4. Employee Engagement Levels
Real-Time Example of KRA & KPI
Inventory Management in E-commerce Warehouse
KRA: In an e-commerce warehouse, maintaining an average inventory turnover rate of 5, stock accuracy above 98%, order fulfillment accuracy of 99%, and minimizing stockout rate to less than 2%.
- KPI 1: Average Inventory Turnover Rate = (Cost of Goods Sold / Average Inventory Value)
- KPI 2: Stock Accuracy Percentage = (Number of accurate stock counts / Total stock counts) * 100
- KPI 3: Order Fulfillment Accuracy = (Number of accurate orders / Total orders processed) * 100
- KPI 4: Stockout Rate = (Number of stockouts / Total orders) * 100
These KPIs led to improved inventory management efficiency, reduced stockouts, and enhanced customer satisfaction.
Key Takeaways
- KRA defines what needs to be done, whereas KPI measures how well it is done.
- KPIs should always be SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
- Regular tracking and adjustments ensure success in Stores Person.
