Introduction
In warehouse operations, labor productivity isn’t just a metric, it’s a competitive advantage. How quickly and accurately your team can process orders directly affects cost, efficiency, and customer satisfaction.
Yet here’s the surprising truth: many warehouse leaders can’t answer the simplest productivity question of all:
How many orders does my team pick per hour, and how does that compare to industry leaders?
If you don’t know the answer, you’re not alone. But without it, you risk missing opportunities to improve, control labor costs, and keep pace with customer expectations.
Table of Contents
Why Labor Productivity Matters More Than Ever
Labor costs often account for more than half of a warehouse’s operating budget. Every wasted motion, every inefficient route, every process bottleneck eats into your margins. To optimize performance, consider asking yourself: how many orders should your team pick per hour?
In today’s fast-paced, demand-driven market, customers expect rapid fulfillment without errors. That means your labor productivity—measured as orders picked and shipped per person per hour—is one of the most important indicators of operational health.
Get it right, and you can lower costs, increase throughput, and improve service levels. Get it wrong, and you’ll likely see rising expenses, slower delivery times, and frustrated customers.
The Benchmarks: Where Do You Stand?
According to the Benchmarking Your Warehouse eBook, industry data shows a widespread between top performers and the rest:
Orders Picked & Shipped per Person per Hour*
- Best-in-Class: ≥ 35 orders/hour
- Median: 10 orders/hour
- Typical Range: 6.08 – <6.86 orders/hour
- Disadvantage: 2.76 – <6.08 orders/hour
That means the best operations are moving more than three times the orders of the median warehouse. And while the exact number you should aim for will depend on your products, order profiles, and facility type, these benchmarks offer a clear performance yardstick.
*Data from Honeywell
Why There’s Such a Big Gap
If two facilities of similar size and order volume can have such different productivity rates, what’s causing the spread? The answer lies in a combination of physical design, technology, workforce management, and process discipline.
Key Factors Influencing Labor Productivity
- Warehouse Layout - Optimized layouts minimize travel time and streamline picking. Poorly designed storage locations or excessive congestion slow pick rates.
- Technology Utilization - Implementing a Warehouse Management System (WMS) and automation tools, such as voice picking or pick-to-light, can dramatically boost efficiency.
- Employee Training - Well-trained staff are faster, make fewer mistakes, and adapt better to changes in demand or processes.
- Order Profiles - High variability in order size and complexity can reduce picking speed; batching similar orders can help.
- Real-Time Performance Monitoring - Tracking KPIs daily, rather than monthly, helps identify issues before they drag down productivity.
The Hidden Costs of Low Productivity
Falling into the “typical” range might not seem disastrous at first, but it’s a silent profit killer.
Let’s put it in real numbers: if your team picks 10 orders per hour when they could be picking 20, you’re essentially paying twice as much in labor for the same output. Over weeks and months, those costs add up quickly.
And it’s not just about cost. Lower productivity often means longer lead times, which can erode customer trust, increase cancellations, and push business toward competitors who can deliver faster.
Strategies to Close the Gap
The good news? You can move from “typical” to “best-in-class” without massive capital investment if you approach it strategically.
1. Adopt Advanced Picking Technologies
Tools like voice-directed picking, RF scanning, or pick-to-light systems reduce search time, minimize errors, and free up workers to focus on speed and accuracy.
2. Optimize Picking Paths
Analyze your travel routes and redesign them to eliminate wasted steps. Many warehouses see significant gains by adjusting slotting based on product velocity.
3. Implement Performance Monitoring
Real-time dashboards and daily metrics reviews keep productivity top of mind for managers and staff. Small dips in performance can be corrected before they become habits.
4. Cross-Train Staff
A flexible workforce that can shift between picking, packing, and replenishment helps balance workloads and prevent bottlenecks during peak demand.
5. Incentivize High Performance
Well-designed incentive programs can motivate employees to hit or exceed benchmarks, especially when tied to accuracy as well as speed.
Adjusting for Your Environment
While the 35-orders/hour figure is a solid “north star,” context matters.
- High-volume, low-SKU warehouses (like e-commerce fulfillment for small goods) can often exceed this benchmark.
- Complex or hazardous goods may require slower, more careful handling—in which case efficiency gains come from reducing errors, not simply increasing picks per hour.
The key is to measure consistently, compare to relevant peers, and focus on continuous improvement rather than chasing a single number.
Benchmarking as a Continuous Process
One common mistake is treating benchmarking as a one-time exercise. Productivity levels can shift with seasonal peaks, workforce changes, or new technology.
By tracking your orders/hour alongside other KPIs like inventory accuracy, order cycle time, and cost-to-serve, you create a comprehensive view of performance (and a roadmap for ongoing improvement).
Where to Go from Here
If you don’t know your current orders/hour rate, start measuring it today. Use the benchmark ranges to see where you stand and identify realistic short-term targets.
And don’t stop there—labor productivity is just one piece of the puzzle. The Benchmarking Your Warehouse eBook covers all the key metrics that top operators track, including inventory accuracy, order cycle time, space utilization, and cost-to-serve. Each section includes improvement strategies you can put into practice immediately.
Bottom Line
If your team isn’t hitting best-in-class productivity levels, you’re not just leaving efficiency on the table, you’re leaving money there too. Knowing your number is the first step toward improving it.
Want to see the full set of labor productivity benchmarks, compare your operation to the best in the business, and get practical steps to boost performance?
