What are the most important logistics KPI used to drive process improvement?
Several key performance indicators (KPIs) are crucial for driving process improvement in logistics. On-time delivery percentage measures the reliability of your supply chain. Inventory turnover ratio evaluates the efficiency of stock management. Order accuracy rates and fill rates assess the precision and completeness of order fulfillment. Transportation cost per unit and order cycle time analyze the effectiveness of your transportation and delivery processes. Warehouse capacity utilization monitors storage efficiency. Return rates and reasons for returns provide insights into customer satisfaction and product quality. These KPIs, when tracked and analyzed consistently, offer valuable data for identifying bottlenecks, optimizing workflows, and enhancing overall operational efficiency in the logistics industry. Regularly reviewing and acting upon these metrics empower logistics professionals to make informed decisions, implement targeted improvements, and ensure a streamlined and responsive supply chain.