Logistics KPIs

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How to Develop Key Performance Indicators




Logistics KPIs

Key performance indicator logistics and certain metrics have mutual relation, particular in the logistics industry. The metrics consist of cost, time and risks as well. Unavoidably there are complexities involved in the transactions made with different parties.

Cost and time are important and essential factors for logistics operation. The competition also always happens in a logistics business, so it is necessary to have knowledge of the time of the transaction in certain locations. As mentioned, time is very important in logistics business. Completing any work on time will bring high effectiveness. In contrast, delay in work performance means the result gained is not good.

The KPIs and the logistics both have taken time into consideration. Of which concludes the average time to process and finish a typical shipping transaction; the time to finish filing documents and deal with customs; the total time for shipping procedures and trade-related processes; and the percentage of on-time delivery.

If you have delay in delivery in the long time, you have to lose a lot of expenses in transaction and operation. Cost is indispensable element in business field. So that competition in logistics business come to fair end, it’s essential to minimize cost as much as possible. Also, it must create shipping procedures that are quantifiable and that must be within the level of budget.
The logistics business takes charges into performance indicators including charge per case, transport charges, fuel cost, warehouse cost, total cost for shipping-relate procedures, inland transport cost and average cost in processing especial shipping transactions.

I. KPI examples of Logistics dept

Updating.

II. Steps to create KPIs of Logistics dept

• Setting up job purpose of Logistics department.

• Setting up key responsibilities/key KRAs of this department.

• Setting up elements that how to measure each KRA.

• Setting up KPI of each KRA.

• Summarize all KPIs of each department.

III. KPIs of each position of Logistics field

• Logistics director.
• Logistics manager.
• Logistics assistant.
• Logistics supervisor.
• Logistics specialist.
• Logistics coordinator.
• Logistics clerk.

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