KPI Key Performance Indicators in Supply Chain & Logistics

Logistics Bureau

Many people get really confused about KPIs or Key Performance Indicators in Logistics and Supply Chain operations. 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.

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

Cerasis

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. . A service-level agreement (SLA) is a contract between a logistics service provider and a customer that specifies, usually in measurable terms, what services the logistics service provider will furnish. Many logistics service providers will provide their customers with an SLA. All KPIS have metrics to measure.

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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. Chuck specializes in Supply Chain Optimization, Third Party Logistics (3PL) and International Purchasing and Importing Consulting.

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

Talking Logistics

The four key methods here will help you drive more success as you bring the metrics to life on your warehouse floor: 1. Show the “story” of your metrics with quarterly and yearly growth charts; show how far you’ve come as a team over time. 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.

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

Cerasis

3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. 10 Soft Metric Considerations in Measuring Supply Chain Performance. Every company knows customer service is important, but it is seldom well-defined, and even more rarely measured in logistics operations.

Beyond Operational Metrics: Why Measuring Employee Interpersonal Performance is Also Important

Talking Logistics

Companies spend a lot of time and energy measuring operational metrics, the “what” of supply chain performance, but they generally fail to measure the “how” aspects of performance –i.e., Tweet The post Beyond Operational Metrics: Why Measuring Employee Interpersonal Performance is Also Important appeared first on Talking Logistics with Adrian Gonzalez.

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). Logistics Key Process Indicators (KPIs). 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). Without the cost per pound KPI, it is difficult to analyze LTL freight costs.

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Logistics Key Process Indicators (KPIs)

The Logistics of Logistics

If you move freight for a living, you know the importance of logistics key process indicators (KPIs). 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. Key Process Indicators vs. Metrics. I sometimes use the terms KPI and metrics interchangeably, but they are not the same.

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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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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. Logistics Key Process Indicators (KPIs). 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 carrier and or the logistics companies involved can help the shipping group identify the correct NMFC and freight class.

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The 7 Habits of Highly Effective 3PLs

The Logistics of Logistics

The best 3PLs do a great job of communicating with their clients and logistics partners. Habit 2 – Measure Logistics Performance. A highly effective 3PL will use key process indicators (KPIs) to monitor logistics performance. 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).

Service Level Agreement Defined

The Logistics of Logistics

A service level agreement (SLA) is a contract between a Logistics service provider and a customer that specifies, in measurable terms, what services the Logistics provider will furnish. Many customers manage their Logistics providers with an SLA. Sometimes, the Logistics provider has their own SLA/KPI that they want to use with any customer, but negotiation is still in order. An SLA/KPI is typically used when there is a Logistics provider contract to co-sign.

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3 Practical Metrics for Supplier Performance Evaluation

Logistics Bureau

Supplier Performance Metrics for Every Organisation. In this post, you’ll find some suggested metrics for supplier performance evaluation and management. Alternatively you could have two metrics, one for advised variations and one for variations discovered upon goods receipt.

Webinar: Using LTL Key Process Indicators (February 27, 2013)

The Logistics of Logistics

The post Webinar: Using LTL Key Process Indicators (February 27, 2013) appeared first on The Logistics of Logistics. In this free webinar, participants will learn a methodology for using LTL key process indicators (KPIs). The LTL key process indicators are used to measure and then improve LTL carrier performance. Participants will learn specific actions for reducing costs, billing errors, and damaged shipments.

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5 Keys to Implementing Improvement Initiatives

The Logistics of Logistics

It will be tricky to drive change because they are likely the CEO’s “dashboard metrics”. Many measurements are sacred to the board or other metric owners. Feel free to refer the metric owner to point number 3, after you have developed a meaningful alternative. The post 5 Keys to Implementing Improvement Initiatives appeared first on The Logistics of Logistics. Every industry seems to have its silver bullet for creating improvement.

LTL Carrier Scorecard with Key Process Indicators (KPIs)

The Logistics of Logistics

The LTL carrier scorecard with key process indicators (KPI) is an excellent tool for measuring and managing LTL performance and LTL carrier performance. The old adage, “you can’t manage something you can’t” measure” definitely applies in logistics. Without measurement, shippers and logistics providers are not able to objectively analyze logistics performance. Key Process Indicators vs. Metrics. Only the most important metrics can grow up to become KPIs.

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Top Logistics Articles of 2015

Cerasis

We continue our top articles from each of our main 5 categories today by covering the top 10 logistics articles that were the most viewed in 2015. We write to five main categories on the Cerasis blog: Manufacturing, Supply Chain, Logistics, Transportation Management, and Freight. Top Logistics Articles of 2015. Here are the top 10 logistics articles from the Cerasis blog with the 10th most read to the most read published in 2015. Logistics

Webinar: How to Measure LTL Carrier Performance and Save Money (November 21, 2012)

The Logistics of Logistics

Key process indicators (KPI) for the most important aspects of LTL shipping. The post Webinar: How to Measure LTL Carrier Performance and Save Money (November 21, 2012) appeared first on The Logistics of Logistics. In this free webinar, participants will learn a methodology for measuring LTL carrier performance. They will also learn specific actions for reducing LTL carrier shipping costs. Webinar topics will include: 1.)

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

Talking Logistics

The question becomes, “how are you comparing your transportation metrics to what’s happening around you?” You need to explore the metric relationships to see the full story. Reviewing the metrics simultaneously helps identify potential cause-and-effect relationships. Consider the following metrics: Tender Acceptance: The frequency at which a carrier is accepting tendered loads. Bill Madden is Vice President of Logistics as a Service (LaaS) at BluJay Solutions.

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Employing this S.M.A.R.T. Technique with a Logistics Company to Create Total Stakeholder Satisfaction

Cerasis

Today we continue our series on successfully working with a logistics company, often called a third party logistics company by focusing on how to properly understand the success of the engagement by knowing all the key performance indicators that a shipper could put in place. We will then finalize the series on logistics key performance indicator success management with practical techniques to carry through the academic subjects we've covered thus far. .

Supply Chain Movement 17 – S&OP

Supply Chain Movement

His task – together with his colleagues from procurement, production and logistics – is to simplify the global supply chain while acknowledging that consumers are often very emotionally attached to a particular beer brand. Contents Supply Chain Movement 17 – 2015 Q2.

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Reverse Logistics: Who Does it Well?

Logistics Bureau

It would be tempting to think of reverse logistics as forward logistics done backwards. Reverse logistic isn’t simply a reverse gear. Reverse logistics can also have a dramatic effect on steering a company’s fortunes. Reverse logistics is therefore worth doing, and worth doing properly. Looking to real-life examples for inspiration, we can ask, ‘Who does reverse logistics well?’ This also qualifies as reverse logistics.

The Magic Bullet for Real-Time Supply Chain Collaboration? Cloud Visibility.

synchrono

Order, replenishment status, inventory levels, machine maintenance, system alerts, KPIs, logistics tracking, and more can be made accessible to the appropriate parties anytime, anywhere, providing a single source for real-time information.

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For Your Supply Chain KPIs to be Meaningful, Apply Some Golden Rules

Logistics Bureau

I’ve seen more than one management team create or exploit process loopholes to arrive at better KPI results. You can come up with a list of service metrics and call them KPIs, but that doesn’t automatically make them meaningful supply chain KPIs. Assign individuals as KPI owners.

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Real-World Scenario: Best Practices for Warehouse Contracts: Part One

Cerasis

When it comes to the logistics industry, whether it's transportation management contracts or warehouse contracts, there are a million moving parts, and as many questions. In the below is a real world example of a consultant coming to a third party logistics company with the goal of choosing a warehouse and 3pl provider. What are the major KPI’s to be followed under the below attributes: Cost or Cost Savings. Customer metrics. Who doesn't love a good contract?

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The 7 Habits of Highly Effective Shippers

The Logistics of Logistics

With this in mind, they hire the right people and find the best logistics providers. They are willing to pay a reasonable price for a good logistics provider, rather than risk a service failure with a bad logistics provider. Solid relationships with logistics providers. To get maximum impact, shippers need to develop close professional relationships with their logistics providers. Without a commitment, a shipper will not get the best from logistics providers.

Logistics Analytics – Beyond KPIs on Tender Acceptance and Carrier Performance

Supply Chain Collaborator

Talk to a transportation manager about data analytics and they might tell you they’re already harnessing data collected by their TMS and other logistics IT tools to measure key performance indicators such as tender acceptance by lane, carrier check call compliance and other commonly examined metrics. Freight cost allocation is but one of the many complex logistics management challenges clarified by the application of Big Data practices and logistics analytics.

My Parcel Invoice Said What?! Why Parcel Invoice Auditing Software is Paramount in your Logistics Technology Stack

Cerasis

This only represents a fraction of how auditing software can improve your bottom line, so you need to understand why it is paramount in your logistics technology stack. Gain Control Small Package Process Through Metrics, KPIs and Enhanced Accounting Features.

How to Sustain a Lean Culture in Manufacturing & Supply Chain

Cerasis

To start you must have the KPI's visual along the value stream. These metrics would, of course, be aligned and are updated every hour. If heat is known to vary causing defects when special causes arise then you should see an effect on the overall quality (the next level KPI).

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More Insights on Deploying the Digital Supply Chain

NC State SCRC

The vision of the “LIVING” Supply Chain was shared, and the idea behind development of a centralized control room with commonly shared KPI’s was discussed. Participants noted that most tend to be “very reactionary”, and there needs to be more thought around how to drive report summaries on events, core metrics for tracking events, and thinking beyond what is immediately next.

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Walmart again Raises Chargeback Stakes

Enterra Insights

Dan Sanker, president of logistics service provider CaseStack, told Smith and Nassauer, “Companies might have to track 30 major retailers and they’re all changing things.” Whether you KPI them on Turnover or Profit Margin, having them buy into OTIF is crucial to managing the customers’ expectations.” ” Purchasing – “The KPI most used in Purchasing Departments is Stock Turn.

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Low Tech Can Still Deliver High Returns

TMC

For example, at TMC, white boards are at the center of our daily discussions that help to drive customers’ key performance indicator (KPI) programs and provide status updates on active projects in the pipeline. A key part of our daily discussions is customer KPI metrics.

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Warehousing KPIs

The Logistics of Logistics

KPI is an acronym for key performance indicators (or key process indicators). 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 continuous improvement. Better to really understand the measurements and drivers than spend your week calculating every KPI under the sun. The post Warehousing KPIs appeared first on The Logistics of Logistics.

How to Benchmark?

Logistics Bureau

The performance measurement pillar, which is the one used for benchmarking, is essentially a hierarchy of key performance indicators (KPIs), comprising more than 150 metrics organised into two levels. Supply Chain and Logistics Benchmarking. Free KPI Report. What is a KPI?

The Talent Gap

Logility

Most interestingly, our changing lifestyles are turning consumers into same-day delivery, mobile shoppers, taxing the logistics and merchandising prowess of even the largest corporations. So those assessments should result in some form of reasonable KPI goal setting.

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Balancing Cash, Cost and Service: The Supply Chain Triangle

Arkieva

On the Cost side, we primarily think of operational costs like purchasing cost, manufacturing cost, logistics cost, etc. We also show their typical KPI’s. These are the metrics they wake up with. These metrics are linked to their individual bonus schemes.

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