Tag Archives: kpi

Warehouse KPI

All the logistic operations must be executed with high performance to have a good cost. For this reason it is necessary to measure these operations and to set up target for performance. For this it is necessary to have KPI (key performance indicators), a KPI which is necessary to be relevant for the business, to be easy to measure and also easy to understand by the people. A good advice it is to choose the relevant KPI for your business, relevant KPI means that KPI which can be easily connected with the global KPI for business. Also I advise you to not use too many KPI, because you lose the essence of the operations if you setup too much KPI. It is not a fix number of KPI for an area, but, according to my experience, if you have more than 5-6 KPI for an area it is necessary to revise this.

Continue reading

KPI transport and distribution

What means KPI? KPI is an acronym for Key Performance indicators and means some keys, define by the user, who can measure the performance of something. I said something because can be: a process, a person activity, an organizations etc.
KPI can show you where you are today compare with your goals and also can show you how much you can improve. KPI can be classified by: quantitative KPI and qualitative KPI. Quantitative KPI is the KPI which measure quantities and qualitative KPI’s is the KPI which measure quality.
It is very important when you define a KPI to take in considerations that too many KPI can make the process slower (because you must measure this KPI) and increase the volume of data that is necessary to be evaluated. My advice is to define as many KPI as you want and choose to work only with the relevant KPI. In the relevant KPI it must to be both qualitative and quantitative KPI’s. For example: it is not enough to deliver an order in 24 hours, because you must to deliver that order in proper condition (with no damage and for the right client). So, in this case with have 2 KPI’s: quantitative – delivery in 24 hours and qualitative – deliver to the right client in condition that you agree with the client.
It is also important to define how you measure a KPI, because some people or organization can measure the same KPI in different ways.  For example: time to load a truck can be measure as time that the truck stay in the loading area of the warehouse, or can be measure as the total time that truck stay till is finish to load (this means waiting time+ loading time).
The KPI’s must be relevant for the activity or for the business. For example: a relevant KPI in total km in full per truck (in transport or distribution business). An irrelevant KPI can be for the driver: total fuel that you must pay for the car of the boss of the company.
In the next part of this article I try to define some KPI’s for transport and distribution business:
–    Mileage per car (truck) – total number of km (miles) per truck in a certain period of time;
–    Mileage per driver – total number of km (miles) per driver in a certain period of time;
–    Average mileage per period of time (week, day, month etc) per car (truck);
–    Average mileage per period of time (week, day, month etc) per driver;
–    Number of orders per car (truck)/driver per period of time;
–    Number of deliveries per car (truck)/driver.
–    Number of average deliveries per car (truck) or driver;
–    Average mileage between drops per period of time;
–    Average mileage per route per period of time;
–    Tons per period of time;
–    Tons per driver per period of time;
–    Average tons per period of time;
–    Average tons per driver per period of time;
–    Average tons per delivery per period of time;
–    Average tons per driver per period of time;
–    Average number of products delivery per period of time;
–    Average delivery time per client;
–    Fuel consumption per car;
–    Fuel consumption per driver;
–    Total cost of fuel;
–    Delay of delivery per period of time – percentage of delay delivery from total delivery in a period of time;
–    Damage goods (transport fault) per period of time – percentage of damage goods from total transport goods;
I try here to define and give you an idea how KPI’s can be defining. You can define more others or you can redefine this in other way which consider that can be useful for your business. The big challenge is to find a proper way to measure this KPI, a way which must be easy, affordable and cheap.