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


This is the first post in an ongoing series on effective KPI management from third party logistics consultant, Chuck Intrieri, of The Lean Supply Chain. . It can take months to negotiate a complex SLA/KPI document, as you go back and forth with your logistics provider so the document becomes a “win-win” for both parties. 9 Key Topics to Understand to Frame A Shipper's Mind for Effective KPI Management. Effective KPI Management Requires Periodic SLA/KPI Review.

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Logistics KPIs Case Study: Whirlpool’s Supply Chain and Logistics Success Driven by Effective KPI Implementation


We conclude our ongoing series in talking about effective KPI management by giving you a real live Logistics KPIs management case study from Whirlpool's engagement with a logistics service level provider. Also monitored were Whirlpool supplier SLA/KPI agreements.

KPI Key Performance Indicators in Supply Chain & Logistics

Logistics Bureau

I’ve literally seen KPI “packs” the size of phone books, and even KPI sets circulated as a monthly magazine… that no one reads. Supply Chain KPI Tips. Supply Chain KPI. What’s a KPI, Anyway? You will use a KPI in the same way as your car’s speedometer.

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7 Strategic Performance Business Practices with 3PL KPIs and 4 KPI Problems to Solve


We began our series first writing about the 9 key broad and somewhat soft topics to understand in effective KPI Management. Frequent 3PL KPIs reviews will detail performance appraisal of each KPI set by the 3PL and shipper/customer. Scorecard analysis, % to all goals, and critical path: “What KPI is holding us back from overall success? KPIs are reviewed to ensure the IT SLA/KPI is effective for both parties. KPI Program Positive Reinforcement.

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FMCG Supply Chain: KPI Scorecards - Don’t look back in anger

Enchange Supply Chain Consultancy

FMCG Performance Improvement KPI S&OP IBPFor a change, UK has been my base for a few weeks and even in that short time I have started to genuinely think I must now be a different nationality if not from a different planet. When my denim jeans rip at the knees it is time to throw them out.

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Change Supply Chain KPI’s to Drive Competitive Advantage


As companies mature and become more demand driven I think the nature of the departmental KPI will change. Use KPI’s as a key part of moving to a ‘demand driven’ process. ” Define how the KPI set connects vertically in the organization as well as horizontally.

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An Introduction to Some Supply Chain KPI Fundamentals

Logistics Bureau

What is a KPI? What is a KPI? Can you explain what a KPI is? Take the notion of a KPI or key performance indicator, for example. Some KPI Examples. DIFOT (delivery in full and on time) is a typical example of a supply chain customer service KPI.

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The Best LTL KPI for Measuring Cost

The Logistics of Logistics

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). LTL KPI – Cost per Pound Calculation. To calculate the cost per pound KPI, take the cost of the shipment and divide it by the shipment weight (pounds). The KPI gives the shipper an objective measure to compare freight rates, different weights, freight class, carriers and shipping locations.

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Top 10 Demand Planning Metrics You Should Have on Your Dashboard [Infographic]


Demand Planning accuracy kpi amr research forecast accuracy demand planning kpi dashboard demand planning kpi scorecard demand planning kpis forecast performance metrics supply chain metrics world class forecast accuracyTo stay ahead of the curve, effective demand planners must track the right metrics that can help curtail possible demand planning issues ahead of time.

The Best LTL KPI for Measuring Freight Damage

The Logistics of Logistics

The best LTL KPI for measuring damaged shipments is simply the percentage of damage free shipments delivered. To minimize freight damage, begin measuring it with the damage free shipments KPI. LTL KPI – Damage Free Shipments. To calculate the damage free shipments KPI, simply divide the number of damage free shipments by the total number of shipments. Insights from Damage Free Shipment KPI. The higher chance for freight damage drives the need for this LTL KPI.

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Managing a Third Party Logistics Partnership

The Logistics of Logistics

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. You should also have a Modification Clause wherein you can modify the SLA/KPI/ Contract and Prices in 30-60-90 days. 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.

The Best LTL KPI for Measuring On Time Performance

The Logistics of Logistics

The best LTL KPI for measuring on time performance is simply the percentage of on time shipments. LTL KPI – On Time Performance Calculation. To calculate the on time performance KPI, simply divide the number of on time shipments by the total number of shipments. Insights from On Time Performance KPI. The on time performance KPI will flag the late deliveries. Does your company use the KPI described above?

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The Best LTL KPI for Measuring Billing Accuracy

The Logistics of Logistics

The best LTL KPI for measuring billing accuracy is simply the percentage of accurate bills. Regardless of who does the freight bill auditing, shippers should measure billing accuracy with the LTL KPI described in this article. LTL KPI – Calculating Billing Accuracy. Insights from Billing Accuracy KPI. The post The Best LTL KPI for Measuring Billing Accuracy appeared first on The Logistics of Logistics.

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Get rid of the KPI ‘Mille-Feuille’ by getting it right!


You know better than anyone else in your organization where you stand regarding the KPI Mille-Feuille. The post Get rid of the KPI ‘Mille-Feuille’ by getting it right! 1.000 layers may be very delicious within a pastry. But when it comes to KPIs, this easily leads to data confusion rather than data enlightenment Those who have already tasted Mille-Feuille, a tasty French dessert, know how delicious this pastry can be.

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FMCG & Pharma: Top 10 Tips for a Tip Top Supply Chain

Enchange Supply Chain Consultancy

FMCG Route to Market Logistics Service Provider Dave Jordan CEO Performance Improvement Pharma KPI Traditional Trade S&OP Cost ReductionOnly a few months into the year and I am hearing the same old complaints about the economy and business being in general ill health.

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SC and Sales senior team squabbles: Always bad for business

Enchange Supply Chain Consultancy

Dave Jordan CEO KPI Supply Chain SalesAnother sign of getting old I guess. When was the last time you watched a football match when no tattoos were on show and the haircuts did not look like something out of the Time Warp musical?

MIssion Critical KPI’s: How to Keep a TMS Implementation on Track

Logistics Viewpoints

We determined that the providers must use a set of criteria and KPI’s to make sure that the project stays on time and on budget. […]. I have been conducting a lot of research around TMS applications recently, and my colleague Steve Banker and I began to discuss how TMS providers keep their implementations on track. Just for Fun Transportation Management Systems

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Supply Chain Performance: Budget Airlines and KPIs……

Enchange Supply Chain Consultancy

FMCG Dave Jordan Humour Performance Improvement Pharma KPI Supply Chain Supply Chain AnalyticsI have never been a fan of budget airlines and certainly not since one left me sleeping overnight in the back of beyond that is Luton Airport.

Service Level Agreement Defined

The Logistics of Logistics

Sometimes, the Logistics provider has their own SLA/KPI that they want to use with any customer, but negotiation is still in order. Some Logistics providers use time/percentages to implement the SLA/KPI based on the customer’s volume. An SLA/KPI is typically used when there is a Logistics provider contract to co-sign. How do you write an SLA/KPI? What sections are typically in an SLA/KPI?

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Global FMCG Supply Chain Transformed by Analytics

Enchange Supply Chain Consultancy

Customer service FMCG KPI Supply Chain Inventory Management & Stock Control Supply Chain AnalyticsThe Challenge A leading global FMCG company undertook an aggressive supply chain improvement programme across 150 markets.

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. Check out another great KPI definition at About.com. I sometimes use the terms KPI and metrics interchangeably, but they are not the same. A Key Performance 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.

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FMCG Supply Chain Scorecard Performance Measurement: Del-Boy Style.

Enchange Supply Chain Consultancy

This is how the Trotters Independent Traders KPI Balanced Scorecard might look. FMCG Dave Jordan Humour Performance Improvement KPI Supply Chain

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FMCG Turn-around Intensive Care Recovery KPIs

Enchange Supply Chain Consultancy

FMCG KPI Supply Chain Cost Reduction Inventory Management & Stock Control balanced scorecard RecoveryOn a daily basis the amount of care we give to the human body is remarkably little.

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The 7 Habits of Highly Effective 3PLs

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. Logistics Key Process Indicators (KPI). Highly effective 3PLs have developed the right habits, culture and processes to deliver excellent service to their clients. Innovation and new technology are obviously important, but when evaluating a 3PL, go with the one that excels at blocking and tackling.

The 3 Types of Supply Chain Analytics

The Smart Software

Blog Business Policy Demand Planning Excellence in Forecasting Inventory Optimization Operational Analytics demand planning implementations ERP inventory modeling inventory optimization kpi metrics probabilistic modeling statistical forecasting supply chain analytics

Supply Chains – A second look: What do all those initials really mean?

Enchange Supply Chain Consultancy

SKU FMCG Route to Market Dave Jordan KPI Traditional Trade S&OP Logistics Management Distribution Inventory Management & Stock Control

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Supply Chain: Communication teases out scorecard improvement

Enchange Supply Chain Consultancy

FMCG Performance Improvement KPI CommunicationWhen I used to spend far too much of my life flying around the globe I did my best to avoid cabin chat with fellow passengers. That may sound a bit miserable but I just needed some sleep before arriving at the next FMCG supply chain challenge.

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FMCG Performance Scorecard: Not seeing the wood for the trees!

Enchange Supply Chain Consultancy

This week I have been helping a regional FMCG company define a corporate KPI Performance Scorecard. FMCG Dave Jordan Performance Improvement KPI Supply ChainWhen travelling, my personal preference is to take only one plane to my final destination.

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Sales & Operations Planning (S&OP) KPI Scorecard Improvement

Enchange Supply Chain Consultancy

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Overcoming Complacency: How to Drive Even More Supply Chain Metric Success

Talking Logistics

Much like the “in the green”/”in the red” problem cited above, if they feel like they’re getting called out for every KPI discussion, they’re not going to be very forthcoming. KPI discussion needs to be an ongoing conversation, not a once-a-month meeting fraught with concern and disappointment. Guest Commentary Guest Commentary - Kenco Group Warehouse Management continuous improvement Kenco Group KPI supply chain metrics warehouse management

Do Returns Impact My Forecast Error Calculation Negatively?


Forecasting forecast accuracy kpi forecast bias calculation Forecast error calculation how to calculate mape in excel measuring forecast accuracy best practices types of forecasting errors what is a good mapeShould you factor returns in your forecast error calculation? In this article, we’ll use a sample data set, to demonstrate if you should consider returns when calculating your forecast errors. Do Returns Impact My Forecast Error Calculation Negatively?

10 Top Tips To Tip-Top Customer Service in FMCG, Drinks & Pharma

Enchange Supply Chain Consultancy

Whatever service related KPI you measure, the KPI is designed to asses how you are performing both internally and at a retailer or outlet level, against peers. Customer service Brewing & Beverages FMCG Logistics Service Provider Dave Jordan Pharma KPI Logistics Management

Seeing the Bigger Picture: How a Global Trade Network Can Create More Accurate KPIs

Talking Logistics

Guest Commentary Guest Commentary - BluJay Solutions Transportation Management benchmarking global trade network KPI logistics routing guide tender acceptance transportation managementYour supply chain’s key performance indicators support tactical, day-to-day business decisions, so ensuring you are reading them correctly is imperative. The question becomes, “how are you comparing your transportation metrics to what’s happening around you?”

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Editor’s Pick: Updating Your Planning Strategies to Industry 4.0

Talking Logistics

KPI QuintiqNote: Today’s post is part of our “ Editor’s Pick ” series where we highlight recent posts published by our sponsors that provide practical knowledge and advice on timely and important supply chain and logistics topics. Today’s post is by Kris Kosmala from Quintiq where he shares four takeaways and recommendations to succeed in today’s more digital and automated business environment. In “ It’s the era of Industry 4.0.

What's your KPI?

Infosys Supply Chain Management

Give personal bias a rest: Devising a KPI is a challenging affair, overcoming bias adds to the challenge. Be latest, context driven and improve continuously: A must thing I must say, gives you a chance to introspect and evaluate, something which is critical factor in success of any KPI. A continuous improvement plan will not only ensure the validity of the KPI in the changing business context but will ensure sustainable and credible model to follow.

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