The Most Important Distribution Center Metrics to Track and Understand


Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. Additionally, the use of metrics fosters positive relationships with coworkers and adherence to rulesets and best practices for the respective third-party logistics provider (3PL). What Distribution Center Metrics Need Tracking? Data Distribution Logistics Supply Chain distribution center metric

3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance


3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 10 Soft Metric Considerations in Measuring Supply Chain Performance. Customer Service Levels : When it comes to how a shipper defines the value of a logistics provider or 3PL to the bottom line, there are often several Key Performance Indicators (KPIs) and Logistics Metrics taken into consideration.


Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

3PL Warehousing 101

Kanban Logistics

While you can build and staff your own warehouse and perform these services yourself, more and more companies see the value in handing warehousing operations off to a third-party logistics (3PL) provider. Types of 3PL Warehousing. The dedicated 3PL model. The shared 3PL model.

3PL 52

Consumer Demand Helping Drive 3PL Industry Growth

Talking Logistics

The need for this next-gen technology has contributed to the significant growth of the 3PL market in recent years. Yet, even as shippers have increased access to this technology, the 3PL market continues to grow. 3PL market has grown by roughly 7% annually since 2009 and is expected to reach $170 billion by the end of 2016. Then, and only then, can they determine what technology solution, or if outsourcing to a 3PL, is best for their business.

3PL 151

6 Benefits of Effective a Reverse Logistics System & The 9 Core RevLog Metrics to Track


Importance of Metrics in Reverse Logistics Management. To monitor progress against its reverse logistics management plan, a company needs metrics that measure the financial impact of returns on the firm and on other members of the supply chain. Measures such as amount of product to be reclaimed and resold as is, or percentage of material recycled, are examples of such metrics. Energy used in handling returns : This metric is used in sustainability programs.

Getting the Full Value Add from 3PL Services by Avoiding Commoditization or Transactionalism


If you are a logistics manager seeking options for a partnership with a 3PL services provider or looking to optimize the 3PL solution, then understanding the expansion of the holistic approach that some 3PLs offer will help you select an option that best suits your company. You will want to gain insight into what differentiates one 3PL from another, what core capabilities they offer and what skills do they have in developing strategies and thought leadership.

3PL 223

Embedded 3PL Relationship: What is it & Why is it Vital to Ultimate Shipper Success?


Like any outsourced partnership to a service and technology provider, such as in a 3PL relationship, it is vital that all sides are on the same page and speaking the same language in the way of goals, desired outcomes, strategy, and execution for whatever the customer and the outsourced provider are trying to achieve. This model, I like to call an "embedded 3PL relationship.". So, then, what is an Embedded 3PL Relationship? Embedded 3PL Relationship Example.

3PL 178

The 7 Habits of Highly Effective 3PLs

The Logistics of Logistics

Innovation and new technology are obviously important, but when evaluating a 3PL, go with the one that excels at blocking and tackling. During the sales phase a good 3PL does the following: listens to client needs, manages client expectations, customizes services, and builds relationships. A highly effective 3PL will use key process indicators (KPIs) to monitor logistics performance. When Evaluating a 3PL, Check for These 8 Must Have Cultural Traits.

3PL 197

Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process


The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ). The definition of this metric is similar to the way it sounds. Quality affects many different parts of the business, so it is critical to establish a comprehensive metric that provides visibility into the most important areas of operations.

How to Capture Full Divestiture Value with a 3PL

Talking Logistics

Today, shippers face increased regulations, unstable market conditions and capacity concerns that make it near impossible for a newly divested company to achieve all of its goals without the expertise and support of a third-party logistics (3PL) provider. A 3PL provider offers customers with outsourced, or “third party,” logistics services for part or all of their supply chain management functions.

3PL 136

3PL Metrics: Do Retail Suppliers Measure Success the Wrong Way?

Kane is Able

If you are a user of third-party logistics (3PL) services, you know that 3PLs tend to have a metric for just about everything – productivity, accuracy, timeliness, costs…. 3PL metrics are used as a barometer of performance and to inform continuous improvement programs. CPG Logistics Logistics KPIs 3PL Outsourcing

Top 25 3PL warehousing companies in 2020 (by revenue)

6 River Systems

Today, there are many top 3PL warehousing companies that handle warehousing, fulfillment, logistics and distribution services for companies of all sizes. Read on to learn more about the top revenue-earning 3PL warehousing companies in 2020.

9 Key Topics to Understand to Frame A Shipper’s Mind for Effective KPI Management with a 3PL


Here are the 9 key topics to understand in the relationsihp between the shipper and the 3PL. To be unified is to collaborate and trust the shipper/customer Third Party Logistics Service Provider (3PL) relationship. All KPIS have metrics to measure. Communication should be daily by the customer/shipper project leader/point person of the shipper, and the project leader/point person of the 3PL.

KPI 248

Retail Suppliers: Why Supply Chain Metrics are Critical to Retaining Your Business

West Coast and California Logistics

power, speed, agility) and increasingly more to do with metrics. With these metrics, teams define the “best” players as those that perform well in key statistical areas like “on-base percentage” and “slugging percentage” – not necessarily who can hit the ball the farthest. 3PL OutsourcingIn modern baseball, the analysis of player performance has less to do with time-honored traits (e.g.,

When Evaluating a 3PL, Check for These 8 Must Have Cultural Traits

The Logistics of Logistics

When evaluating a 3PL, the culture should definitely be considered. From my experience as both a supply chain consultant and a 3PL manager, the right type of culture means everything in the logistics business. When evaluating a 3PL, look at the following traits of the company culture: Communication. A good 3PL will facilitate good communication between all parties (clients, ultimate customer, suppliers, and other logistics companies). are all indicative of a good 3PL.

3PL 100

5 Questions to Ask When Selecting a 3PL

4WL Consulting

Working with a managed transportation services provider (3PL) is an excellent way for shippers to improve their logistics operation and reduce costs. Experienced 3PLs will be able to provide specific examples of results they’ve achieved with other clients in similar industries, as well as the quantifiable metrics they’ll use to measure the ROI of your program. Qualified providers will establish and report on KPIs based on the service metrics most relevant to your company.

3PL 100

5 Crucial Software Every 3PL Company Needs To Have


Introduction Third-party logistics provider (3PL) is a company that provides outsourced logistics services to other organizations. In the past years, activities of logistics have increased and particularly outsourcing services to 3PL providers. This article will present five software that every transporter and 3PL company should employ to stay competitive, cost-effective and ensure on-time delivery. Finding a suitable WMS for 3PL companies is no easy task.

3PL 61

Managing a Third Party Logistics Partnership

The Logistics of Logistics

When you have chosen a 3PL partner, insure that you have an effective Service Level Agreement (SLA) with accompanying Key Performance Indicators (KPIs) to manage the Service Level of the 3PL. This SLA/KPI has to be negotiated and agreed upon by you and your 3PL partner.This negotiation time can take three (3) to Six (6) months. If you do not want to start at the 3PL as a contact customer with a SLA/KPIs, you can ship your goods and become a public account.

5 Easy-to-Use Ways to Monitor Supply Chain Health

Talking Logistics

Do you have the right metrics? Metrics show how your supply chain is performing – providing they are the right ones to do the job. Inappropriate metrics can give a false or incomplete picture of supply chain performance. Second, what metrics are the best indicators of performance in terms of these goals? These are examples of metrics that may or may not support your goals. Benchmark your operation using the selected metrics.

Tips for Managing Performance Metrics for Order Fulfillment

Amware Logistics and Fulfillment

But that’s not necessarily true for eCommerce fulfillment KPIs, especially if you’ve just started working with a new 3PL or have added a fulfillment operation. In today’s hotly competitive eCommerce environment, it’s easy to assume that more is always better.

Top 6 Reasons to Use a 3PL for Fulfillment

3PL Insights

When choosing a 3PL, it’s important to be picky. A good 3PL will not only increase quality and reduce mistakes, but will also create an opportunity to review and simplify your supply chain processes. Here’s a few reasons to use a 3PL when you’re learning how you can leverage your 3PL to improve your fulfillment strategy. Shipping and handling quality is improved when using a 3PL. The core competency of any standard 3PL warehouse is shipping and handling.

3PL 52

What should you expect from your 3PL's WMS?

West Coast and California Logistics

It wasn’t that long ago that simply having a sophisticated warehouse management system (WMS) was a major selling point for third-party logistics (3PL) providers. But, while having a full-featured WMS may no longer be a differentiator for 3PLs, the way a 3PL uses the system certainly can be. 3PL Outsourcing Multi Channel Fulfillment Fulfillment B2C Metrics-KPIs Inventory Control Electronic Data Interchange Warehouse

Selecting a 3PL – 9 Things Every Shipper Should Know

The Logistics of Logistics

Recently, a shipping manager asked me what selection criteria he should use when selecting a 3PL. As a sales guy for a 3PL I am always anxious to impress shipping managers, so I created the following 9 things to consider when selecting a 3PL. Understand the 3PL Business Models – Asset based, Non-asset based, Asset light. Pros: If the 3PL is good at procurement, they can build a large network of partners / carriers. Metrics / Key Performance Indicators (KPI).

3PL 109

Logistics Key Process Indicators (KPIs)

The Logistics of Logistics

A KPI is an indicator (a metric) that you have chosen, and agreed with your partners and or customers, that will determine whether you are meeting your critical success factors. Key Process Indicators vs. Metrics. I sometimes use the terms KPI and metrics interchangeably, but they are not the same. A metric is any standard of measurement (number of carriers, inventory turns, average shipment weight, etc.). Only the most important metrics can grow up to become KPIs.

KPI 186

Selecting a 3PL – 9 Things Every Shipper Should Know

The Logistics of Logistics

Recently, a shipping manager asked me what selection criteria he should use when selecting a 3PL. As a sales guy for a 3PL I am always anxious to impress shipping managers, so I created the following 9 things to consider when selecting a 3PL. Understand the 3PL Business Models – Asset based, Non-asset based, Asset light. Pros: If the 3PL is good at procurement, they can build a large network of partners / carriers. Metrics / Key Performance Indicators (KPI).

3PL 100

3PL Sales: Speed Kills

The Logistics of Logistics

My friend, Steve Elwell is a sales guru and he says speed is the most overlooked sales metric. Most 3PL sales people are afraid to focus. The post 3PL Sales: Speed Kills appeared first on The Logistics of Logistics. His mantra is “the faster you close, the more you make.”. Why speed matters: If you increase sales speed, you increase profit. Assume you close 10 new customers per year and the average profit is $10,000 per month.

3PL 109

3PL Fulfillment Prices! (Infographic)

Supply Chain Game Changer

Growing e-commerce fulfillment demands and costs have collided to bring about an uptick in average 3PL fulfillment prices within the outsourced fulfillment industry, as was evidenced by’s annual poll of 500+ warehouses across the US. Each year, the online fulfillment match-making service surveys their network of 3PL companies to gauge the industry’s average costs of doing business, as well as what prices they charge users of fulfillment services.

3PL 58

Service Level Agreement Defined

The Logistics of Logistics

Chuck specializes in Supply Chain Optimization, Third Party Logistics (3PL) and International Purchasing and Importing Consulting. Logistics Management 3pl kpi examples key process indicators KPI kpi logistik KPIs kpis for freight logistics key process indicators logistics metrics examples LTL key process indicators service level agreement SLA SLA/KPI SLA/KPIs

KPI 100

Outsourcing Logistics: Does It Make Sense for Everyone?


The benefits of outsourcing logistics processes to a third-party logistics provider (3PL) are well documented. However, organizations must be careful to ensure they do not overstep their bounds before, during and after selecting a 3PL. This helps you grow your business, and a 3PL can provide you access to resources that you may have never even considered as needing improvement, explains industry expert, Frank Castiglia. There Are Many Different Types of 3PL Services.

Are You Happy (logistically speaking)?

Kane is Able

Happy is an under-rated metric. Supply Chain Challenges Logistics KPIs Logistics Leadership 3PL Outsourcing KANE Company CultureIn logistics, we measure just about everything. If it moves, we measure how fast. If it sits, we measure how long. If it costs money, we measure how much. But do we ever measure happy ? Not often, if at all. And that’s too bad.

3PL Best Practices

3PL Insights

by Brandon Hood – Customer Service Rep, Evans Distribution Systems Some 3PL best practices include successfully using business metrics and inventory management systems. For 3PL’s, measurable metrics allow the companies to benchmark themselves against... The post 3PL Best Practices appeared first on 3PL Insights - Warehousing, Transportation, and Logistics.

3PL 55

What Is Vendor Management

The Supply Chain Journal

As stated by Gartner, vendor management involves locating the best vendor, establishing a contract, monitoring relationship metrics, determining the right balance of workflow, and also mitigating risk when working together. Tracking and analyzing essential KPIs and other metrics.

The Best LTL KPI for Measuring Cost

The Logistics of Logistics

The cost per pound metric can be used to compare individual shipments, carriers, and even weekly invoices. White Paper: The Essential Guide to LTL Shipping Improvement: Action Plan and Metrics for Rapid Transformation. The best LTL KPI for measuring cost performance is cost per pound. The less than truckload (LTL) cost per pound KPI is easy to calculate (see below).

KPI 109

Utilizing Data to Benchmark Performance

Supply Chain Link

These benchmarking metrics can be used to compare performance factors against competitors, industry averages, and previous performance metrics. Supply Chain 3plThere is more data available today than ever before 1. Collecting data and utilizing that data to establish performance benchmarks is extremely valuable. The analysis of this data can help shippers gain insight into how they can improve, Read More.

LTL Carrier Scorecard with Key Process Indicators (KPIs)

The Logistics of Logistics

Key Process Indicators vs. Metrics. A metric is any standard of measurement (number of carriers, inventory turns, average shipment weight, etc.). A key process indicator (KPI) is a metric that you have chosen that will give an indication of your performance and can be used as a driver for improvement. This means that while all KPIs are metrics, not all metrics are KPIs. Only the most important metrics can grow up to become KPIs.

KPI 116