Would appreciate if you can send me a sample KPI in Logistics activity. 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. What are the 3 or 4 clear objectives you have for the operations under your control? Hi Rob Thanks for the clarification above, do you have any specific example of LKPI for Hospital Logistics? https://www.logisticsbureau.com/blog/. I am working as an intern in a logistics co. where Iam supposed to work on project. Then maybe as a productivity KPI, add the number of units, lines, cartons or whatever suits you best, that are processed out and processed in each day. Editor’s Note: We first published this post in May 2013. Running time loaded v unloaded. I’m not sure the measure of orders in the system would be that useful. Vehicle uptime (availability). Skip to main content. But you could manage the receptionist on the accuracy of directing call to the right department, first time. I would suggest that you look at all the key areas where the process can break down, and measure those. Can be more specific? I’m sorry I don’t really have a KPI tool to recommend to you. Hi can you help me with 3 KPI for delivery Driver, what can come with leading & lagging on 3 kpi goals, we are lost in this. The most common cause is a state of confusion about what constitutes a KPI. I would like to know your thoughts about the digital supply chains especially in automotive sector. I’d look at (assuming this is gas station delivery) Cost per delivery Cost per cubic metre / 1000 litres Drops per run Drops per vehicle per week Kms per drop That type of thing…, Hi Rob, Is there a KPI for a selection process for new suppliers. KPI stands for Key Performance Indicator, and can be defined as a practical and objective measurement of progress, either: If you are driving your car and you wish to maintain a speed of 50 KPH, you will use your speedometer to maintain that velocity. They don’t need to be exceptionally granular, but should instead track the most vital elements of supply chain performance. At the beginning of this article, I stressed the importance of not having too many KPIs. And expensive. We continue our series on understanding the 3PL KPIs (Key performance indicators) from 3PL consultant, Chuck Intrieri of The Lean Supply Chain as it relates to the engagement with a 3PL. Success With Supply Chain KPIs: A Brief Case Study, Threats and Measures: A Catalyst for Change. Deliveries per hour Cases/units. Is there any pre-built spreadsheet? Of course, the difference between KPIs and metrics will vary at different levels of your organisation, so while a metric recording “receiving accuracy” in a warehouse would undoubtedly be a KPI for a warehouse manager, it would be utterly extraneous as an executive-level KPI. Remember, that KPIs should be selected to measure specific business objectives or outcomes. Thank you so much. Hi Nisreen. For example $ / unit delivered, $ per drop. Get the idea? Similarly, it’s easy to forget that a supply chain comprises the flow of information and money, as well as goods. Hi Lawal, The problem with inventory management in fashion businesses, can be the ‘end of lines’ and also the broad range of sizes and colours. And what’s even better: the data obtained by these indicators will reflect directly on the effectiveness of your company’s logistics management, as they allow you to continuously monitor and evaluate all the metrics related to your supply chain. Dear sir, I am researching towards transport KPIs but these have to be made visible in a dashboard. Find out what are the main Key Performance Indicators that will help evaluating your logistics company's performance in this article: As of July 1, LinkedIn will no longer support the Internet Explorer 11 browser. Be that inventory record accuracy, product descriptions, pack sizes or simply the way you record KPIs. Performance management system is a very generic term and could apply to anything really. Please tell me what isKPI in NGO Sector regadering supply chain management. Please I work in the Oil & Gas industry more specifically LPG distribution. If you can help me with specific points which need to mention for KPI’s it will be great help. That will cover most of your responsibilities. The one caveat I would add here, concerning golden rule #9, is that it’s essential to incentivise only behaviours that do not jeopardise health and safety or regulatory compliance, or otherwise put the reputation of your business at risk. Whilst there is a tendency to think that a lot of KPI are required to monitor an outsourced 3PL operation , the reality is that the following 5 are really all that are needed. Posted on 08 June 2017 - Share. The first step is schedule establishment. I am a Logistics Executive and is handling the pre-shipment issue, like issuing the Pro-forma invoices to customer and work orders to factory for production. Depends what you are trying to measure. My question is, can i tier KPI for Marketing and Logistics together? Dear sir: I’m currently working within a project of logistics with a new logistic supplier for health enterprise hospitals. This reduces the risk of exposure and strengthe… Sourcing packaging and supplying that to the production function. 3. 1) Don’t have too many! What are your objectives? 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. Remember what the K stands for! Nevertheless, it is essential to have a hierarchy of KPIs, since, as already mentioned, a level of granularity suitable for one level of management will be either too general, or too detailed, for another. Why Klips. Are you looking for KPIs for ferries? 9) As each KPI is proved stable and effective, it should be reinforced by incentives or compensation. This is one of the most crucial KPIs for warehouses and distribution centers. I presume the Logistics Coordinator is managing outbound delivery? Logistics involves the significantly sophisticated data, communication as well as management systems needed in the modern business ecosystem. The KPIs required for Reverse Logistics will vary slightly from one industry to another, but some indicators remain standard across the board. You’ll find a lot more information about KPIs. Would you please suggest me the KPI’s for Purchase-Import. Still, it’s worth briefly discussing, as an example, one of the process cycles commonly used when monitoring supply chain performance. Hi. I don’t think your industry would be any different from others. it is useful information, am working in a project to deliver high quantity and value of a product using the Air mode. Hi Rob, What can be possible KPI for vendor billings? 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]. But I would at least start with one that targets service and another at cost. If in full is a problem, maybe adding in a check station in the warehouse before despatch is an idea? Managers who oversee the running of departments and are responsible for Logistics and Supply Chains have a significant number of considerations to make when tracking a successful operation. However, in Supply Chain, you would generally expect to see the following standard set, along with those that are more specific to your business needs. 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. Can I use KPI to do performance management of employees. Yes! Now you might be wondering, “What are the Logistics Key Performance Indicators (KPI’s) I should measure to improve my company’s logistics?”, we have listed the most essential ones below. 3) Lead time. When you say faulty goods in relation to food products are they really faulty or become faulty so they can be written off? The customer and the supplier would work together to develop KPIs that would highlight why many pubs were receiving deliveries with incorrect product quantities, and why even more deliveries were arriving late. I would be highly appreciated. Using KPIs for performance measurement ensures that you are always evaluating your business activity against a static benchmark. In fact you should. My current position is Supply Chain Manager in Automotive company dealing with foreign and local suppliers and also we serve the aftersales and whole sale for genuine parts for many brands, below areas are reported to me: – Procurement and logistics. Could you expand on your question a bit and I’ll see if I can help. There are many leading indicators that combine to impact bottom line logistics performance. 5. Picking Accuracy (because it supports DIFOT) And maybe cost per item delivered, to provide a cost reduction focus. The partners developed a KPI portfolio, which, although hardly simple in the way this article advocates, served to highlight some severe issues in the supplier’s warehouse and transportation functions. Another dubt is how a company can correctly monotoring the accuracy of its data? As with all KPIs, start with what you are trying to measure. , Rob O ’ Byrne email: [ email protected ] Phone: +61 417 417 307 targets for packs! 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