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Logistics Metrics
22 Jan

Logistics Metrics: 6 Operational Activities

Logistics Metrics KPIs are the hub of innovations.
As Peter Drucker said,
“If you can’t measure it, you cannot improve it.”

 

In this blog, we’ll explain how our logistics KPIs dashboard can help you improve your logistics performance.

 

Logistics Metrics Operation Activities 

 

In summary, a typical logistics metrics operation has five main activities, which can be divided into several sub-activities. So, the leading five activities include:

 

1. Receiving: This crucial stage involves the efficient offloading of goods from incoming trucks, conducting thorough inspections to ensure quality and quantity accuracy, and accurately documenting the receipt of inventory.

 

2. Storing: This stage focuses on strategically placing received goods within the warehouse. Proper storage maximizes space utilization, minimizes handling, and ensures easy access for subsequent order picking and shipping activities.

 

3. Order Picking: This is the core process of selecting the correct items and quantities to fulfill individual customer orders. Accuracy and efficiency in order picking are paramount to ensure timely and error-free order fulfillment.

 

4. Packing and Shipping: This labor-intensive stage involves carefully packing orders to prevent damage during transit, generating shipping labels, and coordinating with carriers for timely delivery.

 

5. Delivery: This final stage encompasses the entire transportation process from the warehouse to the customer’s location. Factors such as delivery speed, on-time delivery rates, and cost-effectiveness are critical for customer satisfaction and overall supply chain efficiency.

 

Logistics Metrics operation activities

 

For more details, see our blog on the five basic warehouse activities you should focus on improving.

 

5 Basics Warehouse Activities You Should Focus to Improve

 

Furthermore, based on his 17 years of experience as a supply chain leader, Dr. Muddassir Ahmed has created a sample Logic API dashboard showing the most frequently used logistics metrics KPIs.

 

 

If you are a Supply Chain and Logistics Manager seeking a comprehensive and manageable Logistics KPIs Dashboard to oversee your operations, you have come to the right place. This ready-to-use Excel Dashboard will help monitor performance for the Previous Year, Current, and Future periods.

 

Logistics Metrics dashboard

 

Logistics Metrics KPI’s For Six Main Areas

 

Logistics is the strategic management of the flow of goods, services, and information from the point of origin to the point of consumption. By streamlining processes and reducing waste, logistics plays a crucial role in the overall success of businesses. However, logistics metrics KPIs for six main areas are as follows:

 

1. Time-Related Performance Indicators (KPIs)

 

Time-related performance indicator focuses on and covers the following aspects:

 

  • On-Time Delivery: Percentage of orders delivered within the promised timeframe.
  • Lead Time: Time taken from order placement to customer delivery.
  • Cycle Time: Time taken to complete a specific process or task within the supply chain.
  • Order Fulfillment Time: Time taken to process and fulfill a customer order.
  • Order Cycle Time: Time taken to complete an entire order cycle, from order receipt to customer delivery.
  • Delivery Window Compliance: Percentage of deliveries made within the specified delivery window.

 

Logistics Metrics time indicators

 

2. Quality Performance-Associated KPIs

 

Quality performance-associated KPIs cover the following aspects:

 

  • Defect Rate: Percentage of products found to be defective upon inspection.
  • Return Rate: Percentage of products returned by customers due to quality issues.
  • Customer Complaints: Number of customer complaints related to product quality.
  • Yield Rate: Percentage of sound output compared to total input in the production process.
  • Conformance to Specifications: Percentage of products that meet specified quality standards.

 

logistics metrics quality indicators

 

3. Cost-Related Performance Indicators

 

Cost-related performance indicator focuses on the following points:

 

  • Cost of Goods Sold (COGS): Total cost of producing and delivering goods.
  • Inventory Turnover: Number of times inventory is sold and replaced within a given period.
  • Days Sales of Inventory (DSI): Number of days it takes to sell off current inventory.
  • Logistics Costs: Total costs associated with transportation, warehousing, and handling.
  • Procurement Costs: Costs related to sourcing and procuring materials, including purchasing, negotiation, and supplier management.

 

logistics metrics cost indicators

 

4. Productivity-Related Performance Indicators

 

Productivity-related performance indicators key aspects are:

 

  • Throughput: The amount of output produced within a given period.
  • Labor Productivity: Output per unit of labor input.
  • Equipment Utilization: Percentage of time that production equipment is in use.
  • Order Picking Accuracy: Percentage of orders picked correctly without errors.
  • Warehouse Space Utilization: Percentage of warehouse space effectively utilized.

 

Logistics Metrics productivity indicators

 

5. Safety-Related KPIs

 

Safety is one of the most essential factors in every aspect of life, but logistics metrics cover the following factors:

 

  • Lost Time Injuries and Illnesses (LTIR): Number of workplace injuries resulting in lost work time.
  • Near Miss Incidents: Number of incidents that could have resulted in an injury or accident.
  • Safety Audits: Number of safety audits conducted and the results of those audits.
  • Employee Safety Training Participation: Percentage of employees who have completed safety training.

 

logistics metrics safety attributes

 

6. Culture-Related KPIs

 

Culture-related KPI aspects are stated below:

 

  • Employee Satisfaction: Employee satisfaction scores related to safety, work environment, and overall job satisfaction.
  • Teamwork and Collaboration: Measures of teamwork and collaboration within the supply chain.
  • Communication Effectiveness: Effectiveness of communication and information sharing within the supply chain.
  • Continuous Improvement Initiatives: Number of employee suggestions for improvement and the implementation of those suggestions.

 

logistics metrics cultural KPIs

 

 

Logistics Metrics

 

Furthermore, as long as you have imperative KPIs, the goal is to turn logistics metrics data into information insight so you can identify gaps versus targets, identify areas of logistics for improvement, and determine your next steps. However, Logistic performance is an essential part of the overall operation, and you can use this Logistic KPI dashboard to drive improvement in your logistics metrics operations.

 

If you want to derive more value from this dashboard, enroll now in the course on “Must-Know Metrics for Supply Chain Professionals” from SCMDOJO Expert Paul Denneman.

 

Logistics Metrics

 

Why are Logistics KPIs and Metrics Important?

 

Logistics KPIs and metrics are crucial for businesses to:

  • Make informed decisions: Data-driven insights help identify bottlenecks and optimize resource allocation.
  • Improve efficiency: Streamlining processes, reducing costs, and boosting productivity.
  • Enhance customer satisfaction: Timely deliveries, accurate orders, and effective issue resolution.
  • Gain a competitive edge: Faster time-to-market, cost leadership, and superior customer service.

 

With this customizable Logistics KPI Dashboard Excel Template, you can obtain a detailed view of your business’s Current Performance versus Target and the Previous Year’s performance.

 

Get Access To Logistics KPIs Dashboard Now!

 

About the Author – Fatima Salman

Fatima Salman is a dynamic content writer and social media influencer with a knack for crafting compelling narratives that engage and inspire. She currently contributes her expertise at SCMDOJO and has over five years of experience as a content writer and two years in media. Her passion for storytelling and strategic content creation has made her a key player in digital marketing.

Fatima earned her bachelor’s degree in Economics and Finance from the NED University of Engineering and Technology, where she cultivated a strong analytical foundation that complements her creative skills. Her versatile background allows her to seamlessly blend data-driven insights with captivating content to drive impactful results.

Beyond her professional endeavors, Fatima is a recognized social media influencer. She shares her unique perspectives and lifestyle inspirations with a growing online community.

You can follow her on LinkedIn or Instagram.

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