From there, you simply need to adopt the indicators that will provide you with this data. 3) Design each KPI as a leading metric, able to assist with the prediction of performance issues. Inventory value as a % of sales Inventory stock cover as weeks of sales. Top 5 best practice KPIs for your operations team Published on October 7, 2015 October 7, 2015 • 50 Likes • 0 Comments Sir please what KPI can I use for inbound logistics, managing operations vehicles (pool cars and delivery van)and packaging of finished goods. Hi Rob, What can be possible KPI for vendor billings? As in any business activity, supply chain operations need to focus doggedly on improvement to compete in the market place, but how do you know if your supply chain performance is satisfactory, or if it is getting better, or worse? What will impact the cost? Ideal for any freight forwarder looking to identify patterns and continuously correct errors in order to make transportation safer. This supplier gives materials on time but only partial quantity, Sometimes it gives full quantity but delivery occurs late and sometimes both happen simultaneously. That would at least get you started with a KPI around each of, service, productivity and costs…, I have recently joined as Logistic Manager in a construction company..want to know the KPI of my Dept. I work in freight forwarding company and manage import groupage road & sea service from different countries. See this link for Sydney office details. This is your own performance, Delivery In Full On Time, to YOUR customers. 3) Lead time. Hi Rob, Read your comments to others.All were very much informative. Pallet, case? Hi rob , I am looking for KPI’s for sales manager and area sales manager for a food delivery service organisation vis a vis with the restaurants . So in this case, you have a third party buying products, for you to sell to your customers. I would like to know your thoughts about the digital supply chains especially in automotive sector. Hi Nisreen. Jan 3, 2020 | Benchmarking, Performance Measurement - KPIs | 210 comments. The management of the company set a schedule that outlines the timeline and the resources that are necessary to perform and complete the operational analysis. Among others, these measurements refer to transportation, warehouse and supply chain aspects. Debtor days, Cash at Bank, Current Ratio…. I am working as an intern in a logistics co. where Iam supposed to work on project. Well said, Good to know about some much-needed KPI’s of logistics, how to implement them to achieve relevant results. Editor’s Note: We first published this post in May 2013. https://www.supplychainsecrets.com/. Dear sir, I am researching towards transport KPIs but these have to be made visible in a dashboard. Urgent business questions that KPIs for logistics seek to answer include: I have to find suitable KPI which shows condition of my service, we don’t have any KPI’s at the moment. Advice. Inventory Value at each stage of your Supply Chain. KPIs for operations manager . But the real question is: are you using this data in your business’ favor? If you can help me with specific points which need to mention for KPI’s it will be great help. Products. Is this product going out to customers? When trying to work out the best KPIs for you, always start with the objective! Are you looking for KPIs for ferries? 8) Each KPI should have a target or threshold indicating a minimum-acceptable level of performance. Fortunately, the pubco’s director was an ex-logistics guy who proposed an alternative solution. Later in this article, I will suggest some rather more comprehensive guidelines, but for now, aside from applying the SMART acronym, my basic take on KPIs is this…. Dear Rob, As the technological advancements are taking place at a rapid pace and logistics is also absorbing the innovation and advancements. Now let’s get a little more granular in this study of supply chain KPIs, and look at some of the specifics involved in tracking cross-functional and functional performance. The logistics value chain begins with demand planning and ends with final delivery – and each link in the chain can have a domino-like effect on others. Later in this article, we’ll look at some examples of functional and cross-functional KPIs. LinkedIn recommends the new browser from Microsoft. The short answer I think would be these KPIs: Transport Cost per order delivered. Any suggestions? So for inbound Logistics you might measure cost/unit, transit time, or receipting time. Do this at the A, B and C item level if possible. 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. I want to seek your help on how to compute KPI’s for evaluating agent performance. Who’s Involved in Order to Cash Measurement? Can you help me out with more please ? This is exactly what the logistics key performance indicators are for. 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. 10) Each KPI should be update-able, as they will lose relevance over time. Consumables usage, parts availability, cost, machine ‘up time’? Best to keep it simple! As with all KPIs, start with what you are trying to measure. This requires an ongoing program to bring it all up to date. first of all THANK YOU for your articles and your answers. But in simple terms, try these as a start point: Procurement – Cost as % sales, and supply in Full on Time Logistics – Cost as % of Sales Inventory Management – Stock turns Warehousing – Cost per order despatched Transporting – Delivery In Full On Time Customer supply – Probability of a perfect order. Thanks, How about some of these? I presume you are after Supply Chain KPIs? I have been tasked to prepare KPI;s for delivery Drivers and the workshop guys. Would you please suggest me the KPI’s for Purchase-Import. Many people get confused about KPIs or Key Performance Indicators in Logistics and Supply Chain operations. When a KPI shows that performance is consistently meeting or exceeding the required level, you can decide to raise the bar and set a higher standard to achieve. It wasn’t long before problems arose, with the customer threatening to exit the contract under a service-level clause. 2. Ideal for freight forwarders that offer these services. If you search on the Blog here you’ll find lots of examples of KPIs. Could you please kindly provide me the examples of what KPI I should take? There are your KPIs…. To illustrate how much this matters, consider the possible consequences of any failure or delay in recording a customer’s payment. That makes fluctuations immediately visible, and if performance moves in the wrong direction, you can quickly respond. Will the use of Artificial intelligence change the KPI measurement metrics? 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. It also helps them figure out where they stand in the market. IT KPIs are not really my area of expertise, but thinking about it logically….. You need to make sure that the KPI is measurable, accurate and clearly understood. Notify me of followup comments via e-mail. Later in this article, I will suggest some rather more comprehensive guidelines, b… Today, much of the focus in earnings calls is transportation-related. As a more practical guide, you might wish to apply the following list of golden rules when building up a suite of logistics KPIs for your company: 1) Make sure you align all KPIs with the overall business objectives of your company. A supply chain that manages and delivers digital products? Stock outs for example, maybe be due to the client purchasing team! Over or under production can bde a major problem. Steps to create KPIs of logistics operations manager 1. Thanks, Rob for the informative article. 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. Makes sense to me. That will cover most of your responsibilities. Cost per case delivered. My job basically will involve with overall dept performance & excellence, right I’m having problem to come up with specific KPI for my function as I can’t put the KPI such as delivery, transit time & quality performance as my KPI since it has been covered under specific section under Logistics Dept, Hope you can give me some advice on how to formulate specific KPI to cover overall dept performance, quality & cost. 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. (2) Cost per order delivered. What type of planning? Is there any specific metric which measures both quantity and time under one formula?? I think for customer service delivery or dispatch on time is always the best KPI. I’m looking for some logistics KPIs in the mining sector. Good day. However, it is beyond realistic to expect anyone to scrutinize them all on a day-to-day or even week-to-week basis. 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