Distribution KPIs List

Distribution KPIs assist in improving logistics department abilities in planning, managing, and implementing supply chain processes to move and store goods.

Channel Design & Management

The Channel Management Office is authorized to produce and develop marketing and distribution channels. They also maintain relationships with brokers or channel partners

Related: Channel Manager, Manager of Channel Sales, Channel Marketing Manager, Channel Program Manager

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  • Number of Distribution Employees – The total number of full time equivalent (FTE) staff directly engaged in the distribution task
  • Sales Channel Density – An assessment of the number of possible clients reached by distribution agent or intermediary
  • Distribution Center Segmentation – The means by which the firm sets up its distribution facilities: by product type, by client/account, by distance to clients
  • Order Tracking Capabilities – A yes/no metric showing if the distribution estimation office gets order shipping information (delivery dates, types of interruptions, accuracy) in real-time
  • Real-Time Tracking Capabilities – A yes/no metric showing whether the firm has the ability to locate its transportation courier at any particular time for outgoing or internal transportation
  • Distribution Channels Used – The manner by which the form delivers finished items: via third-party vendors, straight to client, straight to consumer
  • Number of Distribution Centers – The total number of distribution facilities (both privately operated and outsourced) in operation.
  • Delivery Cycle Time – The average number of hours needed to distribute merchandise and/or materials from port to port

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Fleet Management

The Fleet Management Office is in charge of the maintenance of the company’s properties that physically transfers products from producers to consumers or brokers (a third party who serves as a medium for products offered by the producer like a retail outlet)

Related: Fleet Manager, Driver, Fleet Maintenance Manager, Fleet Procurement Manager, Operations and Logistics Manager

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  • Preventative Maintenance Compliance – The percentage of transportation vessel properties that are updated and on schedule on all expected precautionary maintenance jobs and inspections versus the total number of vessel properties
  • Maintenance Coverage Rate – The percentage of costs related to repair and maintenance of vessels that are protected by warranty or by insurance versus the total vessel repair and maintenance expense
  • Maintenance Failure Records – A yes/no metric showing whether the records of non-standard maintenance efforts are kept for each vehicle, including an explanation of the work done
  • Fleet Accident Frequency – The average number of driver mishaps per 100,000 driving hours acquired by the firm’s fleet
  • Average Age of Fleet – The average age (in years) of the vehicles in the firm’s transportation assets
  • Average Mileage of Fleet – The average number of miles on vehicles in the firm’s transportation assets
  • Fleet Utilization Rate – The percentage of actual time all transportation assets are utilized versus the total time they are ready for usage
  • Average Number of lining Hours – The average number of lining hours recorded by drivers and vehicle operators over the duration of one year
  • Scheduled Equipment Maintenance – The total number of hours consumed on regular, expected maintenance for the company’s line of vehicles in a particular year

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Packaging

The packaging team is in charge of designing and preparing the packaging for finished products. They make sure that products are properly kept safe and stored for shipment and dispersal

Related: Packaging Engineer, Packaging Designer, Packaging Auditor, Packaging Specialist

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  • Percentage of Packages with Correct Documentation – The percentage of packages transported with the right documentation (e.g. packing lists, bill of materials) versus the total number of packaged transported during a specified time period
  • Percentage of Products Damaged during Shipping – The percentage of merchandise that were spoiled at some point during the transportation process as a result of deficient packaging or storage
  • Drop Test Use – A yes/no metric showing whether the firm has executed protocols for packaging drop tests (i.e. drop packed merchandise from a specified height to evaluate packaging quality)
  • Packaging Weight as a Percentage of Total Product Weight – The percentage of the weight of the merchandise packaging versus the total weight of the packaged merchandise upon transportation
  • Quality Control Inspection Standards – A yes/no metric showing whether a regular packaging quality control procedure is executed before packages are transported
  • Shipping-Related Defect Rate – The percentage of the yearly number of product damage due to shipping-related issues versus the total number of merchandise transported

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Packaging (Qualitative)

  • Drop Test Use – A yes/no metric indicating whether the company has implemented guidelines for packaging drop tests (i.e., drop packaged good from a defined height to assess packaging quality).
  • Quality Control Inspection Standards – A yes/no metric indicating whether a standardized packaging quality control process is implemented before packages are shipped.

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Third Party Logistics Management (Qualitative)

Businesses usually hire third party logistics (3PL) for their storage and shipping duties. These are firms that’s offer supply chain services according to current market conditions and customer requirements.

Related: Logistics Coordinator, Logistics Data & Business Analyst, Logistics Manager

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  • Reasons for Outsourcing Internal Logistics Function – The main issue specified by the firm for outsourcing the internal logistics task: costs, processing capacity, better cycle times,lesser shipping related damages, or other
  • Reasons for Outsourcing Outbound Logistics Function – The main reason specified by the firm for outsourcing the transportation task: cost consideration, greater processing capacity, improved cycle times, reduced shipping-related defects, or other

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Third Party Logistics Management

  • Carrier Performance tracking – A yes/no metric showing whether the firm needs individual carriers to monitor each of the following transportation-related glitched: number of deformities per shipment, number of shipments resulting in damages, number of shipments resulting in charges
  • Inventory Accuracy – The percentage of correct inventory data stored within the warehouse management system (WMS) versus the total amount of inventory data within a third-party logistics warehousing properties

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  • Customer Fill Rate (Third Party) – The percentage of client orders that third-party storage and distribution providers meet accurately (on schedule, in correct amount, in good condition) versus the total number of orders they meet
  • Internal Logistics Outsourcing – A yes/no metric showing whether the firm employs a third-party merchant to conduct internal shipments (e.g. manufacturer to warehouse/distribution facility)
  • Outbound Logistics Outsourcing – A yes/no metric showing whether the firm employs a third-party merchant to conduct outgoing shipments (i.e. to clients, consumers)
  • Cost of Shipment per Product – The total expense of transporting merchandise for outgoing shipments through a third-party logistics and transportation provider divided by the number of merchandise transported
  • Transportation Management System (TMS) – A yes/no metric showing whether the third-party logistics providers have transportation management systems (TMS) employed
  • Warehouse Management System (WMS) – A yes/no metric showing whether third party logistics providers have warehouse management systems (WMS) employed

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Logistics Health & Safety

The logistics health and safety office is in charge of giving a workplace that is secure for the workers. They also make sure that the delivery and disposal practices adhere to administrative requirements

Related: Logistics Safety Manager, Safety Supervisor, Compliance Planner, Distribution Compliance Officer

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  • Average Number of Days Between OSHA Incidents – The average number of days between Occupational Safety & Health Administration (OSHA) events at the distribution center that meet the general recording criteria.
  • OSHA Recordable Incident Rate (RIR) – The number of OSAHA incidents that meet the general recording criteria multiplied by 200,000 and divided by the total number of hours worked for a specified term
  • Sanitation Procedures – A yes/no metric showing whether a regulated group of guidelines for the disinfection of distribution centers are in place (especially relevant with perishable goods distribution facilities)
  • Health & Safety Training Hours – The average number of hours each employee gets related to workplace health and safety over a specified term (e.g. quarterly, yearly)
  • OSHA Hours Away from Work – The percentage of work hours wasted due to OSA cases versus the total hours worked over a specified term

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Distribution center or logistics management is a core function of all retail organizations. Real-time Key Performance Indicator (KPI) tracking and measurement provide the organization with the ability to measure the logistics department’s ability to perform its organizational functions and key expectancies successfully. Without this ability, the business runs the risk of losing customers because products will not be distributed timeously and effectively.

Logistics KPIs like the distribution center channel design and management, fleet management, shipping and packaging, quality control, rate of breakages and damage, logistics health and safety requirements, third-party distribution center management, and real-time order tracking capabilities and management.

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