Logistics KPIs List

Logistics KPIs are metrics that track and measure the logistics company, manager, and team’s ability to ensure a successful logistics process over time. The successful implementation of a robust logistics policy and procedures is vital for a successful logistics operation. It is responsible for ensuring that the logistics company or warehouse company operates effectively and efficiently.

Logistics KPIs Reporting Dashboard

Logistics Objectives

Logistics KPIs are designed to track and measure the logistics company’s operational efficiencies. The higher these metrics, the greater the extent to which the logistics company can guarantee organizational success and increase its top and bottom lines.

  • Improve order accuracy – This KPI tracks and measures the degree of incidents from the placement of the order to the delivery of a shipment. This metric forms an integral part of any freight forwarder’s operational efficiencies as it looks to identify patterns and continuously correct errors to make transportation safer.
  • Improve lead time – The lead time KPI tracks and measures the length of time your company’s processes/operations last, from start to finish. It is ideal for the freight forwarder or logistics company to know the amount of time spent in each stage of the supply chain and identify strategies to optimize this time.

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  • Improve stock rotation – The stock rotation KPI measures the average between a company’s outflows with its stock balance at the warehouse. This metric is a critical measurement for freight forwarders that offer warehousing services as part of their logistics solutions.
  • Improve (reduce) warehousing costs – The warehousing costs KPI tracks and measures the expenses involved in the management of your logistics company’s warehouse facilities. The lower the costs, the higher the company’s top and bottom lines, the greater the ROI, and the more effective the logistics company’s cost savings measures are.
  • Improve the trucks’ turntable – The truck’s turntable is the average time spent between the exit for collection or delivery and the vehicle’s return to the company’s base. This KPI tracks and measures the truck’s turntable. The higher this metric, the greater the logistics company’s efficiencies, and the higher the company’s overall productivity levels.
  • Improve the capacity utilization – The capacity utilization key performance indicator tracks and measures the utilization of the load capacity of a vehicle during road transport or a container during sea freight. The higher this metric, the greater the capacity utilization numbers, and the more efficient the logistics company.
  • Ensure products are shipped appropriately to ensure the quality of goods during transportation – This KPI tracks and measures the extent to which products are shipped appropriately to ensure the quality of goods during transportation. The higher this metric, the greater the logistics company’s ability to ensure that products are shipped in a way that ensures their quality during transportation.
  • Schedule and track inbound and outgoing shipments – Scheduling and tracking inbound and outgoing shipments are critical to the logistics company’s operational success. This KPI tracks and measures the extent to which the logistic company is able to schedule and track both inbound and outbound shipments: the higher this metric, the greater the logistics company’s successes.

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Logistics Team Objectives

The logistics team objectives or KPIs are designed to track and measure the logistics team’s operational efficiencies. The greater the logistics team’s successes, the greater the team’s ability to work together to ensure the logistics company’s effectiveness, increasing the organization’s top and bottom lines.

  • Improve On Time in Full (OTIF) – The OTIF KPI tracks and measures the percentage of orders delivered within the stipulated time, without any problems or documentation issues. The higher this metric, the greater extent to which the logistics team is able to deliver orders on time and without any issues.
  • Improve productivity – The productivity key performance measures the logistics team’s productivity rate. It is ideal for freight forwarders to gain an insight into their business’ performance: the higher this metric, the more productive the logistics team, and the greater the company’s top and bottom lines.

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  • Improve (reduce) transportation costs – This KPI tracks and measures all costs related to each logistics operation undertaken by your company, from order placement to final delivery. This KPI helps logistics teams determine the average spent in each shipment and send accurate quotations to their customers or partners.
  • Improve the number of shipments – This KPI tracks and measures the number of shipments over time. It evaluates the average cargoes handled by the logistics team at a stipulated period of time (weekly/monthly/yearly). The higher this metric the greater the number of shipments handled during a predetermined time period.
  • Take control of packaging and provide appropriate, cost-effective, high-quality solutions – This KPI tracks and measures the extent to which the logistics team can take control of packaging and provide appropriate, cost-effective, high-quality solutions. The higher this metric, the greater the logistics team’s ability to pack products appropriately for shipping.
  • Support new business initiatives and projects – This KPI tracks and measures the extent to which the logistics team supports new business initiatives and projects. New business initiatives are designed to improve company-wide efficiencies and reduce costs: the higher this metric, the greater the logistics team’s ability to support new business initiatives.
  • Maintain customer service logs and safety records – The maintenance of customer service logs and safety records is an integral part of the logistics company’s operational efficiencies. This KPI tracks and measures the extent to which the logistics team is able to keep customer service logs and safety records up to date over time.

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Logistics Manager Objectives

The logistics manager’s objectives or KPIs are designed to track and measure the extent to which the logistics manager is able to fulfill the manager’s role effectively, efficiently, and successfully. The higher these metrics, the more successful the logistics manager, and the greater the organization’s operational efficiencies.

  • Develop and maintain strong relationships with everyone connected to the logistics process – An integral aspect of the logistics manager’s role is to develop and maintain strong relationships with everyone connected to the logistics process: the higher this metric, the greater the logistics manager’s ability to build and maintain strong relationships across the logistics industry.
  • Ensure all completed orders are dispatched on time – This KPI tracks and measures the extent to which all completed orders are dispatched on time. The higher this metric, the greater the extent to which the logistics manager is able to successfully oversee that all completed orders are shipped on time.

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  • Take responsibility for the accuracy of labeling to ensure correct parts/finished assemblies reach the right customers at the correct time – The responsibility for the accuracy of labeling to ensure correct parts or finished assemblies reach the right customers at the correct time lies with the logistics manager; this KPI tracks and measures the logistics manager’s ability to ensure that products shipped are labeled correctly.
  • Ensure compliance with import/export regulations/customs regulations and legal and health and safety requirements – This KPI tracks and measures the extent to which the logistics manager can ensure compliance with import/export regulations/customs regulations and legal and health, and safety requirements. The higher this metric, the greater the logistics manager’s ability to make sure the team complies with regulatory and health and safety requirements.
  • Contribute to review meetings – This KPI tracks and measures the extent to which the logistic manager contributes to review meetings. This contribution is integral to the logistics company’s ability to solve problems and increase operational efficiencies: the higher this metric, the greater the logistics manager’s ability to contribute to review meetings.
  • Ensure effective logistics implementation linked to changes highlighted in the review meetings – This KPI tracks and measures the logistics manager’s ability to ensure effective logistics implementation linked to changes highlighted in the review meetings. The higher this metric, the greater the extent to which the logistics manager can ensure that the changes highlighted in the review meetings are implemented.
  • Recruit and train of warehouse personnel – The recruitment, onboarding, and training of warehouse personnel are vital to the logistics company’s success. This KPI measures the logistics manager’s ability to successfully recruit, onboard, and train both new and existing warehouse staff. The higher this metric, the greater the logistics manager’s ability to recruit and train logistics personnel.
  • Negotiate rates with carriers – The negotiation of rates with carriers is integral to the logistics company’s operational efficiencies and its success. This KPI tracks and measures the extent to which the logistics manager is able to negotiate the most cost-effective shipping rates with carriers.
  • Manage an accurate inventory of warehouse materials – The maintenance of an accurate inventory of warehouse materials is imperative to organizational success. And it is part of the logistics manager’s role to manage this inventory accurately. This KPI tracks and measures the extent to which the logistics manager can manage an accurate record of warehouse materials.

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These logistics KPIs are an integral part of ensuring that the logistics company, team, and manager meet their core efficiencies. The successful implementation of a logistics model and methodology plays an indispensable role in ensuring that business operations remain on point and improve continuously. As a result, measuring these objectives is key to organizational success. They focus on tracking metrics grouped as the recruitment objectives for the logistics company, team, and manager result areas.

It is crucial to track and measure these KPIs over time because they offer insight into the logistics company’s successes and where improvements are needed. Metrics like improving lead time, order accuracy, On Time in Full (OTIF), stock rotation, productivity, capacity utilization, and the number of shipments are integral to ensuring operational success for the overall logistics operation.

Using logistics objectives for the logistics team, company, and manager aims to ensure consistency over time. High-performing metrics are valued, translating into an efficient logistics strategy and application by the logistics team. On the other hand, low-performing metrics must be revisited as they indicate poor performance and will detract from achieving operational success.

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  • Use on all smart devices
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