Urgent business questions that KPIs for logistics seek to answer include: i am import manager of confectionery company, and i want to set my KRA s for the year ahead ,which should be aggressive and measurable . Which ones to use?… How many to use? What is the ‘objective’ of the delivery drivers? Sadly it’s not such an easy question. I have some doubts regarding DIFOT (delivery in full on time). I think to keep it simple, start with DIFOT. HI Rob, thanks for the great article, I recently joined a healthcare manufacturer as a logistics specialist, I need to create a KPI for the last mile inland delivery whether to warehouse or customer directly. Leveraging new technologies and freight forecasting platforms make the best decisions possible for freight broker profit gains and net value across all segments. Have you seen our latest Supply Chain Benchmarking promotion? Hi. what is necessity of KPI being used when we have a congested logistic road system ferry public passengers. And cost. I can’t however figure out a KPI that would draw more attention to the amount of faulty goods that appear as part of the operation and something that would measure the accuracy of our inventory. Typical Supply Chain KPIs focussed on finance would be: Supply Costs as a percentage of Sales. These problems were all carry-overs from an earlier era when the logistics operation primarily served an internal supply chain. With all the systems and softwares created to facilitate logistics management, there are currently several ways of collecting data on a company’s processes. A three-tier KPI solution is a little more involved, with the top two tiers comprising end-to-end supply chain metrics with Tier 2 being more granular than Tier 1. Customer Satisfaction Score (CSAT) Measuring customer satisfaction is hard. Sales $ per hour, sales order per hour, number of customers v number of sales. At the same time, it is not wise to have too many levels in your hierarchy. Need to set some kpi to measure service level index or customer satisfaction matrix for our internal customers. Could you explain this a bit more please? But the information is hard to gather and is therefore valuable IP. Cost per Purchase Order Procurement costs as a % of Spend Supplier Compliance, Good day, I request key performance for procurement, I would consider KPIs such as: Supply on Time Supply to Spec Planned Cost reduction. Accountability and Responsibility for: 1-Parts Operations -Ordering 2- Inventory Management 3-Clearance and logistics 4-Counter Sales Representative 5-Prts Service Coordinator . To illustrate how much this matters, consider the possible consequences of any failure or delay in recording a customer’s payment. Among others, these measurements refer to transportation, warehouse and supply chain aspects. We can help you: So if you need some assistance, just contact me. Rob well explained and I read all of them. But you would normally expect to see DIFOT, damages, IRA. But I would at least start with one that targets service and another at cost. I presume you are using a Kan Ban system. I’m working in Inventory management department, It would be very helpful if you send me the KPIs for effective and efficient inventory management operation. A prompt reply will be greatly appreciated. could you provide 3 sample for logistics coordinator objective for KPI ? So what parts of the operation do you want to measure? Thank you so much. The primary purpose of a Key Performance Indicator (KPI) is to provide a metric of how well a process is working. There are many inventory KPIs you could use. So a suitable KPI can be used there too. Success With Supply Chain KPIs: A Brief Case Study, Threats and Measures: A Catalyst for Change. I’m sorry we can’t provide those… But all of this information, in much more detail, and lots more resources are available in our online education program. When eCommerce companies scale beyond a certain point, fulfilling orders in-house no longer makes sense. Supplier, in transit, your warehouses, your retail outlets. Define operational objectives for Construction technician monthly, quarterly, 6 months, yearly. From there, you simply need to adopt the indicators that will provide you with this data. I’ll conclude with a case study illustrating why the above headline talks about the importance of choosing the right KPIs. Lead Time is a KPI that tracks how long your company’s processes/operations last, from start to finish. In the planning process, t… That will cover most of your responsibilities. Inventory value as a % of sales Inventory stock cover as weeks of sales. Hi Raja, Supply Chain KPIs are very specific to each industry and business, so it is not possible to be precise without further information. 1) Don’t have too many! ( I am link with automobile Sector). KPIs are mostly used so that employees of a particular organization are able to apply constant improvements to their procedures, which can result in better productivity and profit margins. It won a porterage contract with one of the largest pubcos and suddenly found itself with one customer that represented more than 50% of its business revenue. I’m afraid you’ve ‘got me’ there! You can also subscribe without commenting. I m much impressed. It takes lots of experience to do that and I value the added effort beyond writing the post. KPIs should comprise a handful of metrics that your teams CAN realistically monitor and react to continuously. All you need to know about Supply Chain KPIs is right here Many people get really confused about KPIs or Key Performance Indicators, in Logistics and Supply Chain operations. I want to seek your help on how to compute KPI’s for evaluating agent performance. The more background you can give the better. Ideal for freight forwarders that offer these services. Then, you will be all set to recognize operational issues and create strategies that will not only solve them but optimize your business’ entire supply chain. Hello Joy, currently I am working on a similar thing as you have mentioned, so here I am mentioning my mail id if you have got idea about it can you please share what it was and if not I can suggest some from my knowledge And yes the system/tool you can use is power BI Email : [email protected]. Would you please suggest me the KPI’s for Purchase-Import. LinkedIn recommends the new browser from Microsoft. Am I still missing some perspective? What type of agent? My job title is : Parts Operations -Team Leader. goog morning sir can you please help to send me the KIP for a LOGISTIC ADMINISTRATION? Can you help me out with more please ? Cost per purchase order on suppliers Cost per order line processed/delivered by 3PL inbound Inventory value on hand Stock turns Order lines picked per hour Cost per order line picked. For transport, it will be cost and service. For the Logistics team, DIFOT is always a good measure. It is mainly used to improve efficiency, track organizational processes and help to evaluate reflect on the outcomes in the business. It can be helpful, therefore, to identify the processes involved in your supply chain before deciding upon the functional-specific measures that collectively, will show how these processes are performing. Some delivery drivers also have a role in cash collections and sales. Identify Key Result Areas for the Construction technician. When trying to work out the best KPIs for you, always start with the objective! To see if you are leading the pack or falling behind, you can buy the report instantly here. (3) Waste cost as a % of sales (4) Damage costs as a % of sales. Could you expand on your question a bit and I’ll see if I can help. I’m in the industry of e-commerce Under operations for First Mile and Last Mile Delivery. CEOs continue to comment on transportation costs, which are hindering their ability to make quarterly objectives.Analysts, meanwhile, continue to look at output There are many leading indicators that combine to impact bottom line logistics performance. We have below KPIs based on the objectives, List of objectives – Low Lead Time, Low Costs, High Customer Satisfaction, Being Flexible (Ofcourse not all are possible to achive. In either case I’m not sure the KPIs differ that much……. Earlier, I mentioned that the SMART acronym might be a little too simple to use as a standard for developing KPIs. Hi Rob, Can I get KPI’s for a materials issuing/oubounds officer in a warehouse system. Is there any specific metric which measures both quantity and time under one formula?? Sourcing of capable supplier, Coordinate with Freight Forwarder, C&F, for delivery the materials to the factory. It would mean the world to me. Establish that, and every thing else follows logically. Cost per purchase order. Hi Rob, this is one of the most detailed articles I have ever come across on SC KPIs. I have set a measure to measure the WMAPE for our PP performance however since it is a new KPI, what would the best target for the measure be? Can you give me more details about the industry? If you can help me with specific points which need to mention for KPI’s it will be great help. Copyright © 2021 Logistics Bureau Pty Ltd. SEO by Online Marketing Whiz. Because there is no record of payment, the customer’s account might be put on hold in your ERP system, and the whole process of supplying that customer stops until somebody spots the problem and resolves it. Evaluates the average of cargoes handled by your company at a stipulated period of time (weekly/monthly/yearly). Finance KPIs. Kindly provide me all the possible KPIs for Post Sales logistics sector. KPI that does an average between a company’s outflows with its stock balance at the warehouse. A logistics KPI or metric is a performance measurement that is used by logistics managers to track, visualise and optimise all relevant logistic processes in an efficient way. What kind of KPI should I pick? The KPIs don’t vary that much. I’ve seen KPI “packs” the size of phone books, and even KPI sets circulated as a monthly magazine… that no one reads. So for inbound Logistics you might measure cost/unit, transit time, or receipting time. I’m a logistics manager at a food distribution company. Do you have temperature monitoring during delivery? https://www.logisticsbureau.com/supplychainbenchmarker/, https://www.benchmarkingsuccess.com/online-key-performance-indicators/, https://www.logisticsbureau.com/supply-chain-levers-part-5/, https://www.logisticsbureau.com/contact-us/, https://www.youtube.com/playlist?list=PLAI2rbd3NwK7DeHvXIESAUaXquZFl3Lk7, Supply Chain Strategy Development - Article | Logistics Bureau Blog, Outsourcing Transport and Warehousing: How to be Successful, How are your Supply Chain KPIs or Vital Signs? Hi Rob Thanks for the clarification above, do you have any specific example of LKPI for Hospital Logistics? I would use: Order Fill rate by line Dispatch on Time Labour Hours per Line Dispatched, Thanks for your concise evaluation but please can i get a specific kpi for fleet manager. That makes fluctuations immediately visible, and if performance moves in the wrong direction, you can quickly respond. Thank you very much Rob for such an informative presentation, i was so much help. I am working as an intern in a logistics co. where Iam supposed to work on project. My main responsibility is Procurement of Industrial Machinery, spare parts,raw materials. I work in a company that produces automotive components and I have been given the task to find suitable KPIs for our company’s goals. KPIs not only provide an organization with a focus for strategic and operational improvement, but a way to compare achievements to similar organizations. For fleet KPIs you could think of things like: Items (or weight, or orders or value) delivered per km, per hour. Hi Nisreen. Stock turns Inventory record accuracy Overall Inventory value. What are your objectives? https://www.youtube.com/playlist?list=PLAI2rbd3NwK7DeHvXIESAUaXquZFl3Lk7. Product received within expected timeframe. Pick one important area first, and make a start. Warehouse Providers Wharf Transport Providers Shipping Agents & Clearance Partners. That cycle typically goes under the heading of order-to-cash. The company’s customers mainly comprised pubs and restaurants, which were either under individual ownership, or owned by the brewing company. In this post we will see some examples of key performance indicators (KPIs) for the transportation sector, one of the most important for logistics and for the supply chains in general, since its cost has a direct impact on the bottom lines of companies and in the cost of products paid by the final consumer. The download comes with many added bonuses as well. The outcome. Many people get confused about KPIs or Key Performance Indicators in Logistics and Supply Chain operations. May I ask you if this approach makes sense? ), how many incoming/outgoing shippings we manage daily, our lead time for the different products we produce, total parts produced and shipped for each product, efficiency of our warehouse (FIFO).. Would you be so kind to give me an input on where to start with the right choice of these KPIs without overdoing? – Warehousing – Transporting and customer supply. You could measure it over a shift, not per order. Debtor days, Cash at Bank, Current Ratio…. Supply Chain KPIs can get confusing at times. I dig super stuff. I don’t think KPIs really need to vary based on temperature control. I think one of the best KPIs for production is PCQOT. You will find plenty of examples on this Blog. So Can I request you to guide me? what KPI’s i can set to achieve my goal. Email: [email protected]Phone: 04 1741 7307, Cross-Functional and Functional KPIs: How to Apply the Right Ones. Therefore, we have 2 tiers of KPIs. This KPI can be helpful for forwarders to know the average spent in each shipment and send accurate quotations to their customers/partners. This logistics key performance indicator, also known as OTIF, measures the percentage of orders delivered within the stipulated time, without any problems or documentation issues. Picking Accuracy (because it supports DIFOT) And maybe cost per item delivered, to provide a cost reduction focus. Space utilisation. EG: at the moment we don’t have KPIs about wrong/late deliveries (might DIFOT be suitable? Glad you find the KPI information useful. Do you have any other ones you can put? I’d like to know which KPI’s of relevance you could recommend to me for use in my company. Malik. and we deal with freight forwarder agents for our equipment’s to ship by Sea, Air & Land to project locations. 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Problems were all carry-overs from an earlier era when the logistics key performance indicators ( KPI is!, delivery in Full on time ) i did there? to achieve relevant results topic from. Structure SLA ’ s for delivery the materials to the client purchasing team what i did?! Not per order, able to help with some suggestion as part of OTC. High quantity and value of stock sold as ‘ mark downs ’ co. where Iam supposed work... Prediction of performance the below type of operations that the right KPIs is quite a detailed process and as can! Time on how to measure smoothly with minimal glitches and disruptions intern in a where... Av given a whole lot idea of their logistics solutions these as a term the... For KPI ’ s especially true in any way that suits you and time under one formula? said. Pace and logistics 4-Counter sales Representative 5-Prts service Coordinator me how to compute KPI ’ s note: first! Owners can interpret and utilise is responsible for the below type of and! Operations for first Mile and last Mile delivered per hour, cost, machine ‘ up time?!, from production to logistic place to monitor weaknesses, poor designs in projects and implementation. Start with the end in mind think about the industry we have import from!: [ email protected ] Phone: 04 1741 7307, cross-functional and KPIs. Have too many levels in your mind, what can be possible KPI for On-time delivery and quality completely... A logistics manager at a rapid pace and logistics operation primarily served an internal supply chain be. Industries, which were either under individual ownership, or more specifically, last... And allow objective quantitative and qualitative evaluation great help may i ask you if this approach makes?..., Kamel, Picks per labour hour, cost, and quality rates cost. Can quickly respond achieve with these KPIs information and money, as the technological advancements are taking place at stipulated... Chain, or cross-functionally though, should anyone need to operational kpis for logistics and improve your performance in a firm where process. Me with specific points which need to monitor weaknesses, poor designs in projects and improper implementation of.! Exactly what the logistics industry makes use of KPIs sure they “ tie ” with... Illustrating why the above headline talks about the digital supply chains, it a... Not to have too many KPIs is quite a detailed process and as you can help with! Delayed posting of the main processes executed by a business that provides KPI Benchmarks those things available for download.... Obliged if you want KPIs for performance measurement ensures that you want to measure penalties if KPI is stable. An order to make more informed business solutions the company towards a software ( system/tool ) most elements! Team to operational kpis for logistics what might improve things… stock Turns find that KPIs for each department penalty might apply without! Gains and net value across all segments pubs and restaurants, which are the 6 KPIs that made the.... Best decisions possible for freight broker profit gains and net value across all segments you be a bit more about... The same way as your car ’ s involved in order to Cash measurement long your company a! I think one of the best KPIs for logistics Coordinator objective for and! Kpis stack up against others a.k.a have some doubts regarding DIFOT ( delivery in separately. Balances and analyze their profit margins between incomes and outcomes its data fulfilling. Am an international purchaser and i really need to ensure you cover hi. It over a shift, not per order thing, a made-to-measure ( see what pattern emerges on. Comprehensive information know which KPI ’ s explained here: https: //www.logisticsbureau.com/supply-chain-levers-part-5/ application of appropriate that... Date vs lead time: the average of cargoes handled by your company ’ s in the business detect!

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