What key performance indicators can you use to evaluate your logistics outsourcing partner?

1). Safety should be our first priority and this to reflect the major KPI % 2). Sustainability program and innovation (Driven by customer's expectation and drill-down into the logistics operational aspect). Other than that, the KPIs should includes: Service level, Flexibility and Inventory Accuracy (which all of them are traditional KPIs).

Para se ter uma correta avalia??o e entendimento da situa??o atual de um processo, e dessa forma, buscar melhorias é necessário ter formas de medir o processo. Nessa linha, temos os KPIs, indicadores estratégicos e essenciais para cada processo. A correta defini??o de quais KPIs acompanhar, bem como, a??es para alavancar esses KPIs s?o o ponto de partida para a melhoria de processo.

KPI’s should be aligned to Business Strategy and represent the actual performance of the Supply Chain. The SCOR Model (Supply Chain Operations Reference Model) recognizes the following strategic performance attributes: Reliability, Responsiveness, Agility, Cost, Profit, Assets, Environmental and Social. Level-1 SCOR metrics are diagnostics for the overall health of the supply chain. These are considered strategic metrics and KPI’s. Level-2 metrics are considered for diagnostics of L-1, and L-3 for L-2. SCOR defines 20 KPI’s (L-1). Reliability attribute has 3 L-1 metrics: RL.1.1 Perfect Customer Order Fulfillment RL.1.2 Perfect Supplier Order F RL1.3 Perfect Return Order F To go deeper into SCOR model, visit scor.ascm.org

Eu come?aria avaliando por... - Capacidade para acompanhar o seu crescimento - Entrega dos SLA's - Tecnologia aplicada nas opera??es Isso me permitiria focar no meu core business e aumentar o crescimento do meu negócio.

Segun mi experiencia los indicadores dependeran del sector que se evalua; pero hay indicadores que pueden ser utiles en casi todos los sectores; como por ejemplo si hablamos de gestión de inventarios el ERI, o si hablamos de Despacho / Distribucion = OTIF; pero tambien es importante siempre ir de la mano con la satisfaccion del usuario del servicio, ya que muchas veces la parte cuantitativa no permite ver la percepcion del cliente (eso se puede medir con una simple evaluacion cualitativa del servicio). En todo caso lo importante es el monitoreo e ir evaluando la evolucion (esperando que siempre sea para mejor).

When choosing KPIs for your logistics outsourcing partner, focus on relevance to your business goals and customer needs, ensuring they align with your contract and SLA. They must be quantifiable, verifiable, and accessible for effective analysis. The KPIs should facilitate the identification of performance gaps and improvement opportunities, while being clear and straightforward. Ensure they encompass various performance dimensions, like quality, efficiency, cost, timeliness, safety, and sustainability, to maintain a balanced evaluation.

When setting KPI’s for your partner you need to take into account the complexity of the task being measured in the country where you are operating. Sometimes global industry standards in terms of timings for example do not apply in some countries - as there are specific items/ actions that are unique to their countries

Certa vez, negociando com o diretor de Supply de uma grande empresa do segmento de bens de consumo, chegamos no momento de definir os KPIs para o acompanhamento da opera??o e ele mencionou 3 indicadores que juntos garantiriam toda opera??o: 1 - OTIF 2 - Inventário Cíclico 3 - Turn-over da equipe Se o inventário cíclico das posi??es do armazém est?o corretas, significa que os produtos expedidos foram os corretos. Se o OTIF da opera??o está correto, significa que as entregas e os produtos transportados est?o ocorrendo de acordo com o solicitado. Se o turnover é baixo, significa que o time além de executar, está se tornando especialista na opera??o, podendo evoluir cada vez mais. E n?o é que ele tinha raz?o! ;)

The question I have is: What are you going to do with your KPI’s? Are you using them for daily decision making, directional setting or simply collecting them to check a box. KPI’s in my opinion are only as good as what you are able to do with them, so decide what is valuable to running your operation and focus on those. Simple KPI’s tend to work better than extensive, complicated, non value added data collection.

KPI’s is important to evaluate performance of each individual or contractors .that will help of giving the right assessment and sustainability, we evaluate logistics partner we should consider the main five KPI’s which is on-time shipment ,lead time ,backorders or stock out .shipping error and fill rate these are the most measurable in each evaluation ,others can be given low rate

Here are four of the most useful KPIs 1. Dock-to-stock time One of the duties of a logistics service is receiving products into the warehouse and placing them in the correct storage areas, so the dock-to-stock KPI measures the length of time between taking the items into the warehouse dock and adding them to inventory storage. 2. Cost per unit shipped Cost per unit shipped indicates how much it costs the company to fulfill orders. 3. Inventory accuracy Inventory accuracy is a comparison of physical stock levels in warehouse storage to the expected stock levels in the 3PL's warehouse management system software. 4. Order accuracy Order accuracy is the percentage of orders that workers picked and packed correctly.

in my view: 1 - the most important Stock accuracy - because everybody wants to make sure the stock is there, not lost, not found one week later. That stock should arrive in a factory or a shop and in the right moment not when the 3PL is able to find it 2 - obviously Order accuracy - because it's not enough that logistician is aware where the stock is but it should be able to prepare it and deliver it correctly 3 - On time delivery it's also important, because nowadays time to market makes the difference 4 - I would say Asset velocity - how fast the 3PL can move the goods from reception to delivery; and capacity - how many pallets/parcels, etc they can move vs the needs 5 last but not least - Flexibility - how fast the 3PL adapt to spikes

Some of the most useful Key performance indicators (KPIs) for evaluating logistics outsourcing partners may include: 1. On-time delivery, 2. Order accuracy, 3. Inventory management accuracy, 4. Cost-effectiveness, 5. Communication effectiveness, and, last but definitely not least, 6. Customer satisfaction.

There are several KPIs four our logistics outsourcing, but when we are trying to improve our customer satisfaction, the ones you should focus are: on time and complete delivery, order fill rate, and order accuracy, through this KPIs we are not only making sure we are delivering what our customers want in the time they need it, but also we are avoiding economic penalties if we do not meet the fill rate.

Come?amos a mensurar em 23 através de KPIs que chamamos de “índices de Sustentabilidade”, todos os resultados de a??es que desenvolvemos com nosso parceiro Logístico em nossa opera??o para tb compartilhar os demais times e áreas da companhia. Por exemplo, temos mensurado a quantidade de CO2 salvos nas entregas que fazemos em carros elétricos, quantidade de energia elétrica salva umas vez que usamos painéis solares na opera??o, utiliza??o de KG de papel e suas varia??es d e maneira reciclável, compra e venda de pallets de plástico para reutiliza??o, etc. Refor?amos desta maneira a importancia de a??es pró meio ambiente mesmo em opera??es logísticas do varejo de luxo.

Il est important de faire part a notre partenaire les objectifs que nous attendons de lui, ce qui peut être déterminant pour nouer une relation durable et de qualité. Il est intéressant d’avoir une transparence sur ce sujet.

To effectively use KPIs to evaluate your logistics outsourcing partner, follow these steps: 1. Define relevant KPIs 2. Establish benchmarks and targets 3. Collect data 4. Monitor performance 5. Analyze and interpret data 6. Communicate and collaborate 7. Continuous improvement 8. Review and adjust By using KPIs to evaluate your logistics outsourcing partner, you can objectively assess their performance, identify areas for improvement, and foster a collaborative relationship focused on achieving your goals.

En mi opinión, es muy importante saber leer la información que nos dan los KPI para dar el seguimiento adecuado a la evolución de la actividad.

Es importante no caer en la tranpa de dirigir tu negocio solo para alcanzar buenos resultados en los KPI definidos. Define Maximo y Minimo en un KPI asi evitaras la sobrepresion en los equipos y conseguiras menos rotacion, lo que incrementa la retencion de talento y con ello la mejora. Es importante conectar los KPI con los Objetivos y con los Balancing Factors si lo que buscamos es el asegurar el largo plazo de la empresa.

Antes de seleccionar los KPI se debe tener claro qué objetivos serán los primordiales y qué expectativa tendremos de la externalización logística , una vez identificado los objetivos podemos definir que KPI serán claves en los cuales las métricas deben ser obviamente medibles , cuantificables, acordar que nivel de servicio se va a necesitar , implantar un S.O.P y sistema de seguimiento , revisiones y ajustes continuos si es necesario.

Maximize your logistics outsourcing partner's performance by setting unequivocal benchmarks, consistently scrutinizing on-time delivery, accuracy, inventory turnover, and cost metrics. Implement proactive measures based on KPI insights, cultivating a culture of continuous improvement and ensuring unwavering alignment with your business objectives.

Um exemplo de KPI que pode ajudar muito na qualidade da opera??o terceira é o inventário. Um estoque acurado é o produto de uma boa opera??o logística. Uma rotina de concilia??o diária e uma contagem cíclica semanal s?o boas práticas que atestam a saúde de uma opera??o. E devem ser buscadas incessantemente.

Consistently look at the outbound box sizes a brand ships in across multiple order combinations If you can shave off an inch or two on any side of the box for a tighter fit, the shipping costs will likely go down. Optimize packaging selection at least twice a year.

The best customers are demanding customers - the ones that look to improve constantly and are willing to work in partnership to improve customer service and efficiency in all aspects. Continuous review and operational analysiy are powerful tools. Striving to maintain the status quo is too low an objective.

To improve your logistics outsourcing partner's performance using KPIs, foster a collaborative relationship, ensuring regular review and adjustment of KPIs to maintain relevance and effectiveness. Align incentives with KPIs to motivate and hold your partner accountable for meeting performance targets. Learn from your partner's best practices, innovations, and insights to optimize logistics processes. Additionally, benchmark their performance against competitors to identify areas for improvement and strive for industry-leading service.

En mi opinión para mejorar rendimientos con tu socio 3PL los KPI de rendimiento son solo lo básico. Un KPI de rendimiento; casi todos los podemos hacer, ponerlos en un contrato, actualizarlos, seguirlos, revisar brechas, sus causas, acciones de corrección, premios, multas, etc. Si pensamos así, es como si mi esposa me tenga un KPI de cuantas veces le llevo a cenar, o cuantas veces le llevo el desayuno a la cama. Es cierto hay que tenerlos, pero el asunto es otro. Una verdadera relación entre Partner va más allá. Aquí hablamos de trabajar verdaderamente en conjunto con un real sentido de beneficio mutuo, medible y exigible; si ese proceso lo llevas a un conjunto KPIs para ambas partes, sin duda lograrás mejorar más que los rendimientos.

Comprehensive risk management is essential. Identify potential risks that could impact performance and collaboratively develop strategies with your partner to mitigate these risks. This may include supply chain disruptions, political uncertainties, or other external influences. The ability to proactively respond to unforeseen challenges is crucial for the success of your logistics outsourcing partnership. Key Performance Indicators (KPIs) for Risk Management could measure: 1) Supply Chain Resilience Index 2) Risk Response Time 3) Contingency Plan Effectiveness 4) Adaptability to Regulatory Changes

Automation is the key in today's world. The KPI should be used to determine the category of vendor and depending upon his performance, capability and capacity my next orders should be automatically forwarded. This will reduce human intervention and increase transparency in the system. Vendor classification and management based in KPI is the future . We can also motivate and nurture our partner to develop in areas that do not match our KPI and help our and their business grow.

In my experience, while KPIs are crucial for tracking and improvement, I believe relationships take precedence. A collaborative, value-focused partnership creates a win-win scenario, fostering trust. When trust exists, businesses can embrace shared risks, leading to mutual growth. In essence, the relationship should be transformational, not merely transactional.

It's crucial to explain in detail while providing a context of why you need this and that KPI. Because KPI by itself is not enough. You can even get your KPI done but in such a crazy way that you will be surprised.