What metrics should you track as a Logistics Manager?

I believe you should track the following metrics to ensure the efficient operation of your logistics processes: On-time delivery Inventory turnover Transportation cost per unit Order accuracy Warehouse capacity utilization Return rate By tracking these and other relevant metrics, you can gain insights into the performance of your logistics operations and make data-driven decisions to improve efficiency and customer satisfaction.

Many important KPIs were raised by all people in this chat. Maybe I would suggest start the KPIs with safety. We can achieve many KPIs, however an operation where people got injuries, wont perform in a sustainable way.

As a logistics manager, you should consider using a variety of metrics to assess the efficiency and effectiveness of your operations. Here are some key metrics that are commonly used in logistics management: 1. On-time delivery performance (to me, the most important one!) 2. Order accuracy 3. Inventory turnover 4. Transportation cost per unit 5. Warehouse capacity utilization 6. Perfect order fulfillment 7. Lead time 8. Return rate 9. Cash-to-cash cycle time 10. ESG, carbon reduction!!!!

The 5 metrics already listed in the article are quite good ones. If I were looking for more holistic metrics I would include inventory turns and club order fill rate and on-time delivery into one DIFOT metric. Freight costs metrics are a must have and this can also be measured as freight as a percentage of sales. If we can include qualitative metrics such as internal and eternal customer satisfaction this would be quite useful. Finally, we MUST also look at EHS and ESG metrics. Vide the latter scope 3 metrics will soon be a must have in any Logistics operation.

Some key metrics ? On Time in Full ? Distribution and Logistics Cost ? Inventory Turn ? Inventory accuracy ? LTI and other safety parameters ? Customer complaints ? Resource utilization(Utilization of Warehouse and transportation space) ? Team engagement and motivation

The order fill rate stands out as a pivotal metric in logistics, as it directly impacts customer satisfaction. It encompasses both the quantity and number of items delivered, reflecting the effectiveness of meeting customer demands. The OTIF (on-time in-full) performance indicator holds significant relevance in evaluating the order fulfillment process, highlighting the criticality of delivering orders accurately and promptly.

Apart from Turn Around Time ,we may like to consider the following KPIs in logistics solution 1/Fill Rate (Total items-Shipped Items) 1- ---------------- Total Items 2/Supply Chain Cycle Time By summing up longest lead time for each stage of the cycle 3/Freight Bill Accuracy Index Error free freight Bill ------------------ Total freight Bills 4/Freight cost per unit Total freight cost ----------- Total number of items By way of consolidation strategic decision by Logistics Manager logistics cost may come down 5/On time shipping rate index Number of on time transferred items ----------------------- Total items 6/Supply without transit damage, deface index 7/ 3P/L ,4P/L ,CHA,RMSP Outsourcing Index 8/Green Logistics Index

Thank you all for your poignant contributions. If you could measure your supply chain with a single KPI it would definitely be Order fill rate or its sibling OTIF. This KPI is usually insufficient on its own as business have multiple goals to commit to, one of which can be working capital or stock level. The trap to avoid in piloting any supply chain is to not have KPI objectives give contradictory goals. You usually can’t improve service level while at the same time also lower your inventory. The exception to that rule is implementation of projects that improve flow or lead time reduction that could benefit both.

As a Logistics Manager, tracking the right metrics is essential for ensuring the efficiency and effectiveness of the logistics operations. Some key metrics that you should consider tracking include: 1. On-time delivery performance 2.Cost per unit shipped 3. Inventory turnover 4. Order accuracy 5. Transportation costs 6. Warehouse capacity utilization 7. Return rates 8. Lead time 9. Carrier performance 10. Sustainability metrics Good luck ??!!!

Essa métrica mede a eficiência do processo de atendimento de pedidos, mostrando quantos pedidos foram atendidos em rela??o ao total recebido dentro de um determinado período de tempo.

Key Metrics : Unit Cost,Inventory days,On time delivery,Case fill rate,OTIF(For Specific client/Initiatives) These are broad metrics at Organisation level,some functions can have KPIs that would enable any of the above metrics(eg: Inbound can have Dock to Stock KPI,this can impact Case fill rate/On time delivery)

On Time is an essential measure, but stand alone can be misleading. Cost of Service is a crucial measure. It plays a significant role is determining the overall efficiency, competitiveness and profitability of the operation.

Acompanhar a porcentagem de pedidos entregues dentro do prazo estabelecido permite avaliar a eficácia do sistema de distribui??o e a satisfa??o do cliente.

On time Delivery only ensures partial problem is solved though, until On time is juxtaposed with In-Full, the customer satisfaction, retention and loyalty bit remains dented. Being On-Time and accurate both are important for your delivery and fulfilment Model to stand out. Tracking both the metrics is important!

Calculating total Freight cost also has components and might get complicated depending on your logistics Model. Total freight cost might be divided into legs- Freight cost from Factory to warehouse (First Mile Freight Cost), from Warehouse to Distributor (Middle Mile Freight Cost) and Distributor to Customer (Last Mile Freight Cost). The Freight cost might differ on each of the legs depending on which mode of Commercial Transportation Model you choose to pay your vendor with or whether you own the fleet yourselves. All these added inputs will help in selecting best Logistics Model as per your need.

Essa métrica calcula o custo médio de transporte por unidade de produto entregue, ajudando a identificar oportunidades de redu??o de custos e otimiza??o de rotas.

Few considerations to optimise freight cost per unit: 1. To check what is less costly PTL or FTL. Need to find inflection point in terms of weight beyond which FTL becomes cheaper than PTL. Usually if truck utilisation goes beyond 70% FTL starts becoming cheaper than PTL 2. To analyse quantum of shipments having less than min chargeable weight. e.g. If payment is basis minimum 10kg weight per shipment, it is advisable to check percentage of shipments less than 10kg and try reduce that number 3. To explore if contract should be per trip basis or per month basis. If vehicle is required almost every day, it might make sense to hire it for a month at a discount

Looking at freight cost as a percentage of the revenue is another way to track if your costs for shipping are eroding margin. There could be margin gains to be had by reducing the shipping cost as a percentage and can identify non profitable SKUs to move away from when it comes to shipping.

Os custos logísticos s?o o ponto central de quase todas opera??es. Se os custos n?o estiverem equilibrados e ajustados, a logística n?o está executando seu papel principal. Costumo dizer que os custos s?o como a água: se deixar pingando, uma hora enche um balde! Equilibrar o valor do frete é essencial para manter a opera??o.

Un Gerente de Logística, hoy en día, no solo persigue métricas que van más allá de la eficiencia pura, sino que integra la sostenibilidad como un pilar fundamental. Para mi entre los mas importantes son: OTIF, Indicador de Devoluciones, costo total de la cadena de suministro, Huella En última instande carbono, Tasa de utilización de vehículos, etc. Un enfoque holístico que equilibre la eficiencia con la responsabilidad ambiental es esencial para el éxito a largo plazo en la gestión logística.

Avaliar a produtividade da equipe e dos recursos logísticos é crucial para garantir uma opera??o eficiente. Isso pode incluir métricas como número de pedidos processados por hora ou número de unidades movimentadas por funcionário.

1. Warehouse Capacity- While there are measures out there to monitor inventory, it is essential that you complete manual observation as well. 2. Accurate Order Fulfillment- Another highly important metric is, of course, the accuracy of the order picking processes. When your employee goes to retrieve a pallet of a specific product, you want to be able to measure how quickly and accurately that task is completed. 3. Total and Individual Cycle Times - In order to be sure that your warehouse is running efficiently, you should be tracking the cycle times.

Logistics productivity refers to the efficiency and effectiveness with which logistics operations are conducted. It is a measure of how well resources (such as time, labor, and materials) are utilized to achieve desired outcomes, such as timely deliveries, cost savings, and high service levels. Productivity 1. Transportation Efficiency: Optimal routing, load consolidation, and fuel efficiency. 2. Warehouse Management:Efficient storage, picking, packing, and inventory control. 3.Inventory Management:Balancing stock levels to meet demand without overstocking or stockouts. 4. Order Fulfillment:Streamlining order processing from receipt to delivery. 5. Information Systems: Utilizing technology for real-time data and process automation.

Eu gosto de afirmar que a produtividade logística pode ser medida também pelo giro de estoque, pois nessa métrica podemos medir se o que está sendo comprado está sendo utilizado. Um estoque sem giro é dinheiro investido parado, e dinheiro parado n?o gera resultados. Controlar o giro de estoque garante se o que foi investido foi utilizado no prazo previsto. O planejamento de estoque n?o será eficiente e eficaz se o giro de estoque n?o for medido.

Logistics Managers focus on different metrics during different scenarios. Their priorities change based on: - seasonality factors - demand uncertainties - supply uncertainties - product lifecycle changes During peak festival seasons, logistics managers onus will be on responsiveness i.e. faster delivery of the products than efficient delivery / lower CPU (cost per unit) Demand uncertainties - inventory norms / DOS plays an important role in products of high demand uncertainties. Supply uncertainties - Supply should be secured for products with high supply uncertainties. Products with end of lifecycle may need closer watch on inventory accuracy to avoid inventory obsolescence.

Hoje, o maior desafio da Logística é o nível de servi?o. Todos em busca da excelência no atendimento ao cliente. A entrega ao cliente deve ser realizada no prazo e completa, o aclamado OTIF; mas para que isso tudo aconte?a, a roda da empresa precisa gerar em conjunto O planejamento de demanda, planejamento de produ??o, produ??o, compras e todos os indiretos. N?o há mágica mas, sim, planejamento e colaboradores engajados na busca pela excelência em seu trabalho.

Oh, you know, just the basics: How quickly everything goes wrong, the rate at which chaos unfolds, how often you're putting out fires, and, of course, the number of times someone yells at you each day? That should pretty much cover it. ??

I like to see the efficiency of logistics operation. Logistics cost/ unit is the metric I focus first. All other activities to improve service level, increase capacity, etc., all follows the status of this metric.

Don’t forget also : - Truck filling rate - Packaging densification - Packaging waste !!!!! - Packaging reuse and empty packaging reverse logistics - Packaging recycling…