The emart chen prormanc smartKPIs.com Top 25 Logistics and Distribution KPls of 2011 © 2012 The KPI Institute Ltd. All Rights Reserved. ID number: sk0128221 ISBN-13: 978-1482559156 ISBN-10: 1482559153 This report is the result of primary research conducted by the KPI Institute. It is available in PDF format on the smart website. Terms of use available at: http://www.smartkpis.com/terms-of-use.html (Premium content terms’). ‘An appropriate citation for this report is: The KPI Institute (2012), Top 25 Logistics and Distribution KPIs of 2011-2012, Melbourne, Australia Indemnity statement The KPI institute has taken due care in preparing the analysis contained in this report. However, noting that some of used for the analysis has been provided by third parties, The KPI Institute gives no warranty to the accuracy, reliability, for purpose, or otherwise of the information. The KP! institute shall have no liability for errors, omissions or inadequacies} information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without For the latest version of the documentation, smartkPls Premium should be consulted Published by: Tae KPI ie The KPI Institute Life Jab Building 198 Harbour Esplanade, Suite 606 Melbourne Docklands, VIC 3008, Australia Telephone (international): +61 3.9670 2979 E-mail office@kpiinstitute.org wee kpiinstitute.org | www.smartkPls.com Ss) Tere KDI InenmprreDistribution KPIs of 2011-2012 ‘Summary Performance indicators (KPIs) Naturally com Community Profile ‘smartkPls.com Functional Areas Taxonomy ‘smartKPIs.com lidustries Taxonomy ntation Form Explained and Distribution as a Functional Area Logistics and Distribution KPIs of 2011 List % On-time delivery % Order fil rate '% Recovery yield rate of retumed products % Delivery deadiines met % Perfect order delivery rate % Orders picking error rate 2 Transit time % Distribution cost % Transport capacity utlization ‘$ Backorder costs % Shipment traceabilty ‘$Cost per ton-mile ‘% Net asset recovery '% Port labor cost to terminal operating cost # Warehouse storage space % Warehouse capacity use rate '% Premium freight charges % Orders delivered with damaged products % Reverse logistics cost to delivered sales value ‘$Fuel cost $ Delivery cost per truckload shipment # Fuel consumption % Cross-docking operations #Vehidle load capacity $ Cost of logistics per logistics FTE -A: Related reports, Training courses : Advisory services Technology solutions : Glossary of terms smartKPls.com The smert choke in pafomance managerThe amor chocelnprformance manager smartKPlscom Top 25 Logistics and Distribution KPls of 2011-2 Executive Summary Given the economic context and the competitive market nowadays, organizations focus more and more on managing and meas (KPls) represent a critical element for any performance management strategy in today’ have diverse performance management initiatives, including the measurement of results against targets by using KPIs, ‘To provide a glimpse into the use of KPIs in practice, smartkPls.com has launched in March 2011 the first edition of a series of dedicated to analyzing the most popular KPIs across major functional areas and industries. The Top KPIs of 2011-2012 reports ‘synthesis of what smartkPls.com is all about: they form an overview of how KPIs are used in practice today, by combining input fr ‘online community with analysis and insights from our research team, The Top 25 Logistiscs and Distribution KPIs of 2011-2012 report compiles the most popular 25 KPIs used by the Logistics and Dist function, The methodology used to conduct the research consisted of ranking the KPI examples published in the Logistics and Dist functional area of smartKPls.com, based on their number of views in 2011. The hundreds of thousands of visits to smartKPls.com ‘thousands of KPIs visited, bookmarked and rated by members of this online community in 2011 provided a rich data set, which wih further analysis ftom the editorial team, formed the basis of these research reports. Out of more than 475 Logistics and Distribution available on smartkPis.com, the 25 most viewed by the members and visitors of smartKPls.com were selected and analysed in detail repor. Logie ons Ae — ‘ { The top 5 Logistics and Distribution KPls of 2044 fee | % On-time delivery ater ty | % Order rate erase | % Recovery yield ele of tumed peducts | Delivery deedines met Natta Haring | asPerect order delivery rate ares a i Notes regarding this report: Logistics and Distribution KPIs are reflective of Logistics and Distribution functions and are grouped info subcategories such as: Li Costs, Transportation, Delivery Quality, Order Processing, Warehousing and Material Handling. From these subcategories, Logistics ‘Transportation and Delivery Quality were the most popular of Logistics and Distribution in 2011. This might ilustrate that optimi logistics costs while improving transportation methods and increasing customer satisfaction is an area of interest for many organizat One of the most important benefits that this report brings is the international perspective it ofers on the most popular KPIs for L and Distribution Management. Logistics and Distibution KPIs provide quantifiable measurements of factors determined to be i {or Logistics and Distribution strategy successful implementation. The skil in applying KPIs is in the selection of the optimum num appropriateness of KPIs. While centered around the KPIs that in 2011 received the highest number of visits on smartKPis.com, the Top KPIs of 2011-2012 "contain in addition to KPI names, a detalled description of each KPI, as documented in smartkPts Premium (the premium content ‘smaxiKPls.com) and other relevant content. the use of KPls today, presenting the best practice in documenting them and listing the mast popular KPIs of 2011, the ‘and Distribution KPIs of 2011-2012 report is a valuable resource in promoting the informed use of KPIs or refreshing the measurement and management practice in any organization, 2 The KPI ner: sk INSTITUTE“he smart cece patomancs management and Distribution KPls of 2011-2012 smartKPls.com formance Indicators (KPIs) activity, the use of tools is essential for the achievement of results. Measurement and evaluation make no with bath conceptual and physical fools. Of the frst category, at the core of any performance measurement and the measures, metrics, indicators or KPIs used. ner literature use interchangeably these terms, oftentimes even within the same organization, have adopted the following definitions for these terms: ‘ora quantity that records a directly observable valve. All measures are composed of a number and a uni of measur. magnitude (how much) for the measure, while the unit gives the number a meaning (what). Examples of unit , hours, meters, inches, et. ‘re defined in many ways, but the common meaning for al of them is that they refer to spect information. Thus, the romic Co-operation and Development (OECD) defines an indicator as “a qualitative or quantitative factor or variable ‘and reliable means to measure achievement, to reflect changes connected fo an intervention, or to help assess the development actor’ Measure or Performance Indicator - A generic term encompassing the quantitative basis by which objectives are performance is assessed. It helps quantify the achievement of a result, the quantifiable component of an organization's the context of measuring and managing performance these terms are used interchangeably. Indicator (KP!) -A selected indicator considered key for monitoring the performance ofa strategic objective, outcome, important to the success of an activity and growth of the organization overall. KPIs make objectives quantifiable, into the performance of individuals, teams, departments and organizations and enabling decision makers to take action desired outcomes. Typically, KPIs are monitored and communicated through dashboards, scorecards and other forms of the terms listed above can be differentiated, in practice, the difference between them is blurred and, at some extent, as their purpose and use is clear and understood by members of the organization, whether they are called performance is a matter of preference, we assess each example entered in the online database and label it as measure, performance indicator or KPI. It is an clive approach to catalogue each entry based on relevance. Ultimately, all entries in the online database are considered | adcition, to single out the entries that stand out in terms of relevance, we introduced a new label: smartKP! -A Key Performance Indicator example available on smartKPls.com, thats recommended as) being the most relevant and truly “Key" for organizational performance. They are selected by the editorial ‘eam of the website based on criteria such as: | «Listing in academic and practioner publications that analyse their usefulness, + Frequency of use by Functional Area / Industry; + Fulfilment ofthe oriteria of how good KPIs should be defined and used. for Economic Co-operation and Development, 2002, Glossary of Key Terms in Evaluation and Results Based Management, OECD THe KPI INstrruTe |:smartKPls.com Top 25 Logistics and Distribution KPls of 2011-201 The smart choc n pertermance management KPIs ... Naturally Measurement as a human activity is not new. It emerged in early history as a mean for discovery and sense making. ‘Archaeologists consider the frst measurement tool used in human history to be the Lebornbo bone, a baboon fibula containing 29 cut notches. Dated 35,000 BC, this tally stick was discovered in the Lebombo mountains in Swaziland, Evaluation, as a form of measurement was used as early as the 3rd century AD, when emperors ofthe Wei Dynasty rated the performance of the official family members. The biased nature of individual performance evaluation was noticed by Chinese philosopher Sin Yu, who reportedly criticized a rater employed by the Wei Dynasty with the following words: “The Imperial Rater of Nine Grade seldom rates men according o their merits, but ahvays according to his likes and dislikes’. ‘A major milestone in making the connection between measuring as a human activity and performance was in 1494, when Luca Pacioli published in Venice ‘Summa de arithmetica, geometica, proportion’ ef proportionalta’ (Everything on arithmetic geometry, proportions and proportionality) It detailed a practice the Venetian sailors had in place to evaluate the performance of their sailing expeditions, which became the bas's ofthe double-entry accounting system, In time, the subjective nature of individual performance evaluations and the dominance of financial indicators for evaluating enterprisg performance became stepstones for performance management in human activities. The industrial revolution added to this combination the ‘organization as a machine" metaphor that played a major role in driving improvements in efficiencies and effectiveness. The result was an organizational performance management model based on mechanistic, command-and control thinking, driven by subjective individual performance assessments and financial indicators and crowned by pay-for-performanee arrangements, Did it work? To a certain extent, yes. Many organizations flourished and matured based on this model. Does it have flaws? Many. And while historical circumstances attenuated them in time, today's environment amplifies and exposes them an accelerated rate. Is there a better way? Yes, but itis not simple. It requires a change at multiple levels, from the underlying philosophy of performance, ‘mentalities and processes. This is not easy. Over time, the use of Key Performance Indicators (KPIs) became synonym to performance measurement and management. KPIs are link between the old and the new in performance management. Their use, however, is much richer and rewarding in an environment base on organic performance architecture principles: Organizations are echo-systems in their own right. They vary in terms of maturity and the environment in which they operate. As suck their use of performance management systems should reflec their own ‘personality’. You can try to build an igloo in Sahara, but it won't sustainable. The performance architecture of each organization needs to be unique and to reflect its intemal and external environment. ‘Systems thinking provides a much richer context for understanding and improving performance. Command-and-control works in time for the army, for increasing productivity of unskilled workers during the industrial revolution and for managing large organizatio (uch as the public service). Today, knowledge workers form the majority ofthe workforce in developed economies, operate in a much interconnected environment and have to make decisions at an accelerated pace. Understanding the systems in which we operate, analyzi flow and leaming based on data become ever more important today and complement the traditional simplistic managerial approach ‘executing orders from above. The KPI nate ID number sK128smartKPls.com ‘Thesmart che in pertermanes manager ould be used primarily for learning. The role of KPIs shoul be the one of providing the required information to assistin navigating the desired results. The same principle is used by ants, who leave pheromone trails to assist each other in navigating towards the Similarly, the nerve impulses travel through the different points of the nervous system, transmitting information. KPIs results ravel through the organization, facilitating communication, providing a base for analysis / synthesis and ultimately decision making levels of the organization curacy in human administration is an elusive desideratum. Neils Bohr once said: “Accuracy and clarity of statement are mutually *. Acoutacy isa challenge in exact sciences and even more in human administration. Striving to obtain any KPI data is a challenge or many organizations and data accuracy is an even bigger ask. The use of KPIs should acknowledge this aspect and be oriented making the most out of existent data, oftentimes by using variance intervals. This approach is used by the human body. If the @ drops under a safe limit, we shiver. Ifthe temperature increases, we sweat. Bath are performance improvement initiatives of the ed to regulate its temperature back to safe limits. The KPI here is the temperature. While itis not a constant, its trend is good when erin safe mits, ‘of KPls for rewards and punishment should be limited and driven by self-assessment. Purposetul oriented behavior is a istic of ving organisms. For humans and many other species, this behavior is amplified by rewards and punishment. Along with this risks are amplified, too. Gaming of results, lack of cooperation, decreased morale and work accidents are some of the undesired s. On the other hand, the majority of nerve impulses in the human body transmit general information. Only in particular situations ‘or pain signals. Similarly, the use of KPIs for rewards and punishment should be the exception to the rule, rather than the norm. g KPIs in organizations through visualization and communication of KPIs results is the key to maximizing their value Natiatons in the KPIs used by the human body are felt by our senses as their impact is sensory rch. Similarly, KPIs used in ational context should be embedded in everyday use and be a part of the working experience. The most important aspect of Seating KPI results is their visual representation. This is Key, both in terms of optimizing the layout of the data representation and of visual displays in the working environment. The range of media is diverse today: posters, whiteboards, banners, LED and tors should be combined to bring results to life across the organization. KPI results should not be restricted to paper reports and soreens anymore, osophy of performance, driven by self-assessment and purposeful achievement as a mean to happiness. While happiness any things to many, a common expression of tis feeling is the result ofthe purposeful achievement of a desideratum. Achieving we want, while shared with others, is about us and reverberates strongly in our inner self. Transposing this powerful catalyst of both our personal and organizational ie is facilitated by a new paradigm: Happiness is driven by achievement. Achievernent ession of performance. if we want 1 be in control of our happiness, we should be in contsol of our performance. essment of performance results is not easy. However, if more emphasis is placed on building this capability in each employee, ons can benefit by creating a rewarding environment conducive to happiness. In this environment, managers can focus on ding and improving the working system, while employees can focus on self-assessment ofthe results’ achievement, leaning and cating. Purposeful achievernent of results in a well-structured working system would bring both individuals and organization much happiness and fuffllment compared to the payment of bonuses in the current command-and-control driven dominant paradigm. here to stay. The question we have to answer is how do we want to use them: mechanistically or naturally? ‘Aurel Brudan, Performance Architect smartkPls.com pox THe KPI Institute |smartKPIscom Top 25 Logistics and Distribution KPIs of 2011-20 smartKPls.com Community Profile Since its launch in 2009, smartKPIs.com established itself as the favourite destination of professionals from around the world intereste high quality documented examples of performance measures. With hundreds of thousands of page views and tens of thousands of vis from over 190 countries each month, www.smartkPIs.com is one of the most used performance management resources on the Internet ‘What sets the smartkPts.com community apart is the prof ofits members. ‘smarikPIs.com is a truly global community, with relatively uniformly spread representation in terms of membership around the world. the highest number of members comes from English speaking countries, no single country dominates in terms of representation. ‘same applies in terms ofthe size of the organizations to which smartkPis.com members belong. While membership Is the highest am companies with 11 to 500 employees, both small and large organizations in terms of headcount are well represented. Country breakdown 43.90% 15:79% 13.09% 7.32% | 219% 221% «230% ©=—«282% 29% 3.85% STO ‘;eERECED mune Bac BPE I South Saudi Indonesia Canada United Arab Malaysia Uniled Australia ndla=«United Others Arica Arabia Emirates Kingdon ae Organization size 11-100 employaes 20.17% “svsubenojcos NIMs ereeresireemer EET og, 1001-5000 employees eae nen 13.51% 1006+ enooyees TT 13.5: 501-1000 employees ARE o cy, +0erroye aT «0% Scenpoyed I 7.577, 5001-10000 employees A s 307, Unspecified Mill 0.79% | Tue KPI InstrruTe he KP! Intute 2 number: #0128Industry affiliation Job title Managerial role Distribution KPls of 2011-2012 smartKPlIs.com The smart cto in peromance anaginent In terms of industry affiliation, the majority cof smartKPls.com community members ‘operate in the consulting industry. The ICT, ‘manufacturing and education / taining sectors follow in this hierarchy, which also reflects wide interest from both the public and not-for-profit sectors. ‘The membership of smartkPIs.com ‘community is dominated by managers and consultants, which reflect a high level of professional expertise. The breakdown of ‘managerial positions by function reflects a higher than the average representation from HR, Project and IT managers. ‘Overall, the profile of the smartkPIs.com | ‘community paints the picture of a global, diverse and highly qualified membership base. Tapping into the collective Intaligence ofthis community by analyzing Visit trends is a reflection of both trends in performance management at intemational level across industries / functional areas and of the relevance of the smartKPIs.com ‘content, Tue KPI INSTITUTE 7smartkPlscom Top 25 Logistics and Distribution KPIs of 2011-2 2011-2012 smartKPls.com Functional Areas Taxonomy 15 Functional Areas with 60 Sub-categories Accounting (269) + Accounting Systems (35) + Cash Management (25) + Control (12) * Cost Analysis (44) + Planning and Reporting (65) * Transactions / Accounts Payable | Accounts Receivable (88) Corporate Services (134) * Administration / Office Support (24) + Corporate Travel (27) + Facies / Property Management (75) + Legal Services (8) CSR Sustainability / Environmental Care (225) + Corporate Social Responsibility (54) + Environmental Care (171) Finance (219) + Asset / Portfolio management (49) + Financial stability (42) + Forecasts & Valuation (56) + Liquidity (19) + Profitability (53) Governance, Compliance and Risk (146) + Compliance and Audit Management (52) * Governance (40) + Risk Management (54) Human Resources (476) + Compensation and Benefits (52) + Efficiency and Effectiveness (48) + Recruitment (71) + Retention (23) * Service Delivery (31) + Talent Development (109) * Workforce (48) + Working Environment (88) Information Technology (608) + Application Development (81) + Data Center (36) * Enterprise Architecture (46) + IT General (47) + IT- Security (118) + Network Management (59) + Service Management (222) Knowledge and Innovation (198) + Innovation (45) + Knowledge Management (71) * R&D (82) Management (53) Marketing & Communications (192) + Advertising (34) + Marketing (127) + Public Relations (31) Online Presence - eCommerce (203) + eCommerce (48) + Email Marketing (25) * Online Advertising (34) + Online Publishing - Weblogs (18) + Search Engine Optimisation (SEO) (15) + Web Analytics (63) Portfolio and Project Management (116) + Benefits Realisation Management (6) + Portfolio Management (54) + Project Management (58) Production & Quality Management (200) + Maintenance (34) + Production (97) + Quality Management (69) Sales and Customer Service (314) * Customer Service (138) + Sales (176) ‘Supply Chain, Procurement, Distribution (420) * Contract Management (50) + Inventory Management (85) + Logistics / Distribution (138) + Procurement / Purchasing (86) + Supply Chain Management (64) * The figures inthe brackets represent he numberof documented KPI examples available on wow.smartKPls.com as of t1 November 2012. For up to statistics follow the hypertinks, * Tue KPI INstrruteDistribution KPls of 2011-2012 tegories + General State Administration (84) + Healthcare (117) + Human / Social Services (32) + Law and Justice (111) * Miltary, Security and Defense (21) + Resources and Energy (50) ‘Tourism (76) + Transportation and Infrastructure (54) Healthcare (1445) + Emergency Response / Ambulance Services (38) + Healtheare Support Services (29) + Hospitals (1075) + Medical Laboratory (18) + Medical Practice (291) + Preventive Healthcare (32) + Veterinary Medicine (7) Hospitality & Tourism (315) + Food and Beverage Service (163) + Hotel / Accommodation (137) + Tour Operator (23) + Travel Agency (24) Infrastructure Operations (707) * Airports (345) + Ports (283) + Railways (26) + Roads (68) Manufacturing (97) Media (148) + Broadcasting (TV and Radio) (60) + Film and Music (45) + Social Media (42) Non-profit Non-governmental (513) Postal and Courier Services (295) Professional Services (388) + Accounting Services (32) * Business Consulting (81) + Engineering (42) + Legal Practice (273) + Recruitment / Employment Activities (61) Publishing (47) Real Estate / Property (184) smartKPlIs.com The smart choc in patorance managerent Is.com Industries Taxonomy + Property Management (83) + Real Estate Development (67) + Real Estate Transactions (34) Resources (442) + Coal and Minerals Mining (327) + Oil and Gas (62) + Sustainability / Green Energy (56) Retail (151) Sport Management (131) * Coaching / Training (14) + Sport Club Management (61) + Sport Event Organisation (41) Sports (148) + American Football (10) * Badminton (10) + Baseball (28) + Basketball (18) * Cricket (10) + Football Soccer (27) + Rugby (10) + Tennis (34) Telecommunications / Cali Center (123) * Call Center (81) + Telecommunications (43) Transportation (1509) + Airines (487) + Land Transport (Road & Rail) (469) + Local Public Transport (367) + Marine Transport / Shipping (235) s (560) + Electricity (114) * Natural Gas (331) + Water and Sewage (141) Tue KPI InstrrutesmartKPlscom Top 25 Logistics and Distribution KPIs of 2011-2 Tre amert choice in potormance management KPI Documentation Form Template as Used by smartKPls.com aca uer sob qrayay circ ete coir reece ete jeter Peer omens | er ee IE | = noe | = as Js ee heen — ; Key PertemaneSndstr KP) \ casecaron formance inet based ye of maser nko i ‘aenfeabon number assgod axonsticaly ‘nth levance and ve tary (unter, perceatape, mortar vate) ‘eon ered in the catabaso Nao o to irletor 9 bet ‘Seche descon of he nat, Otter versions o the indetor name, 28 77 eave in business tems is ame 0d proce ennten:e~ a toast earns sr TT oid by ts, fom ns ao te Varttions Senger a -gn pteres ‘Ets Sengany ese ers /) Sita enone tp / soni easn po 1009 wars / [a a ———— ist of ter led inicatrin te dtabso, cite epatean fivencod Kero tran to tho inter ust or rvigaing by tn indicat, or ounsteam fst intuonce on ts eto by tremate str sma examples Nemes of he measures used nealing (a eccator ff pate), ‘5 apa nate eae oxi j of Hoople sc | | | lean oom Format te “and ga wan Jere ino . 1 Enrosses eee 2a fora ig \ tipo ctatsisten fut, ese nthe combiratonct Dian nich he resus ote ine Ie sutrnge mass fapicabe ‘bore measure, oo, don, most. eed 0 mover postive es. Enlaratnof he reason or busiess Clason ofporomanc near esd on what Seat th inet baad to 30 ean oe it | imenson oan actiyo rest thoy are mesg, / vaio: et proses. etpa or otc Standard Baianced } | Semceur pope Tersete be ata acy ound lor preachy. ‘sre he idalor” SC perspective eacroent toe fisbest, Dito vee Indestor cis | eosument ype Tipo of inst based on tho emphasis of \ Measurront approzt ote KP past acy or re perfomance (Quantatve or quale) The KPI Intute 1D number: KOsts and Distribution KPIs of 2011-2012 smartPIs.com “he smart choice in pefomancearagerten Frequency of data gthoring and ropacing ‘Subject evalua of te btogty le toidetr, J earth te a9 pte. an ne | 1 sanded mperingtegvney Data tg / | 20 eh KP ee ele rasan srs so a ng ote vee esc hn and Soa eB) eich bod rer en \ oter imtatons (et rreccing stom alate) 1 be crsidoed cig the usec te rca. ‘Aiton nfomatn obted ot ‘Trveshotscutng th mts fo postve and [tat sting or tis nator. "7 negative results, 3 wel 2 the tolerance inlenval fe matte, te banchmating vin wl gh lefts oop _-eis ho say» hn oe pre dae sca od oS Tov spay Bed erin lb sed actos he dam Dose tec nec egos a spo tne tence rns ea cre and | ante tec asi. Manga Um bd wonpaney econ be 5M bk eto smal ae conse yoo ke theta ofa gua how, fr eg 1, Atop. Sena, Robes, Ser ek 007 Palle anh calange cnc ermal acs, ovale ak ‘hincesauas iba NTR ResnreuPsboayanahcbetnaeba SCTE esa a SR pe eer bout the uso ofthe india thor recommend onine ad offne resources ~~ —~—___ Lis of resources evewed s pat forundatoming end e ea. kevtten pees ins sntocm |e ber egies ee hia Sonsenpecnerteisasingtnsrtin | aa i - _— oo Ewa Wy (18) 1780 (03 February 2011 foes i la Sreriersy \ Ne Sen br scone \\ ont se natn ape omotale aot aretcn ‘emartkPla Community 7 Other populor KP example ‘average engin tty ER {ngoe Dopo vet ensign oe rs avon ho prof log wth the curent Open comment prove fecback an engage wth ler members of the amarKP con? perentPlecm crsmuniy members cemenuny oor I docmentlin and use of he nar state 2012 skt78224 Tue KPI InstrruteThe smart coc in petomence managerent smartKPlIs.com Top 25 Logistics and Distribution KPls of 2011 Logistics and Distribution as a Functional Area Logistics and Distribution is the combination of movement of goods and warehousing operations, responsible for storing and products. It involves the physical distribution of the company’s products to other distributors or directly o end customers. The KPIs in monitor the time efficiency of the distribution, as well as the quality of movement and warehousing operation of the goods. ‘Sub-categories Logistics Costs - Includes all expenses implied by activities such as order processing, transportation and warehousing, Transportation - Focuses on activities related to the movement of goods by employing various modes of transport. Delivery Quality - Refers to the receipt of ordered items and characteristics such as timeliness and customer satisfaction. Order Processi - Encompasses the activities through which companies respond to customer orders, Material Handling - Includes various methods used to ensure the movement, storage and protection of products. Warehousing - Focuses on activites related to the storage of goods in buildings dedicated to this purpose. History The major contributors and enablers of Logistics and Distribution during history have been the military conflicts. In ancient war t Roman and Greek empires, military officers titted “Logistikas” had assignments of providing services related to supply and distrib resources. Providing the war supplies at the right time and at the right place was a crucial factor in determining the outcome of the battles. Nowadays, Logistics and Distribution has evolved to become an important business development area in most organizations the world. Logistics and Distribution managers are required to have a clear vision and to deliver results under stict deadlines, whether i the organization's premises or delivery of shipments outside the premises of the organization Logistics and Distribution Professional Associations ‘American Society of Transportation & Logistics, nc. (AST&L) Australian Warehousing Association (AusWA) Council of Supply Chain Management Professionals (CSCMP) Intemational Warehouse Logistics Association (IWLA) The Logistics Institute Material Handling Equipment Distributors Association (MHEDA) SOLE - The International Society of Logistics Supply Chain & Logistics Canada Association (SCL) Transportation & Logistics Council (TLC) Women in Logistics » Tue KPI INsTITUTE TD numb te 2 skO128tion KPls of 2011-2012 charges S cost to delivered sales value ‘picking error rate ivered with damaged products yield rate of returned product: ecking operations sse storage space capacity use rate d Distribution KPls of 2011-2012 List Smart kPIscom Logistics Costs Logistics Costs ~ Logistics Costs Logistics Costs Logistics Costs "Logistics Costs Logistics Costs Logistics Costs Logistics Costs Logistics Costs Transportation Transportation Transportation “Transportation Transportation Delivery Quality Delivery Quality Delivery Quality Order Processing Order Processing Order Processing “Material Handling Material Handling Warehousing Warehousing THe KPI INSTITUTEsmartKPlscom Top 25 Logistics and Distribution KPIs of 2011-7 The amar chien prlormanc manajenant —_— ‘Saree — Functional Areas ‘Sub-categories: Industries Sales and Customer Sarrce Customer Senco ay ‘Supp Cain, Proareme, DStEasion ogltis/Disibuton (ine Presence -eCormerce commerce KPI record Indicator type Unit type exto % Name % On-time delivery Definition Measures the percentage of items or products that are delivered on-time to customers. Variations: 1% Rcoivad as agreed without delay (CRO) % On time delivery to promise performance Related KPIs, %4 On time pick-ups Tags dolvery (rae ‘Subordinate measures used for calculation A= #ltems delivered on-time B= i Roms dolvored Calculation formula Formula type ‘Trend is good when (aipy100 Rate Increasing Purpose To indicate the level of operational excellence as a driver for customer satistacton, as late or ut of time delivery I Ikely to lead fo dissatisted customs BSC perspective ‘Measurement focus Impact stago Internal Prosescos Satisfaction Process Indicator focus ‘Measurment type Lovet Leading Quantitative Operational Data capture period ‘Standard reporting frequency Data integrity Wooly Low Limitations, “Accurate reporting requires constant moritering of a8 dolvorios and comparison of ari The DonneThe smart choesin prone mangement es and Distribution KPls of 2011-2012 smartKPlscom Notes A tow rate of on time delivery may have negative consequences on the business, as cients might Consider their ness are not satistied according to their expecations. A high val for this KPI can load to customer loyalty Yellow: 70.90% Groen: >90% Logistics KPI of 2010, and 2011, on smarikPis.com. It reflec the performance of the orgenization and the supply chain both "3, warehousing, transportation) and downstream. This is reflected In costumer satisfaction, avoided ponalioe and operational fof he ‘or-ime" family of KPIs, one of the most used across functional areas and indusities, nsBoU OL asoaing cy Buseeou, ory oo1.(av) ‘uawm pood st pads, ed eymusios eynuoy uopen}e9 atone ewoH #= a Po1opi0 9@ posoNop Sw #= Y ‘vonejnojeo 405 pan saunscow syouIpsoans CSIs stopio “Kenyp "yodsuen 36e, soos-wo4-ds 30) st 8 % Stak PaIEIOH ores % eos 01 Yes BUN % ‘suoneuc, polonjop pue passpu0 sux Jo s9qumu JO} 249 J0 yO "porOpuo Se paxoAyap sway Jo oBqUSSIEd ayy seunsEON, ‘wonuea soyeoppu sovewoyog hoy, dA so1eo10u4 oars. / 29380 ‘souobore>-ans. ouniow sured HP am AL 02-1102 30 Sidy UONNGUAsIG pue soNsiBo7 Gz doy WOr'S|q>y/ewsThe amar chien prorrance maagema tics and Distribution KPls of 2011-2012 smartKPIscom " Notes Targets may vary according tothe order processing procodure. Achieving high targets indicates an increased service level and strong orientation towards customer satisfaction Yelow: 70-80% Groen: 80% smeaeured by the suppior as an assessment of tho quality of distribution and customor sonic. pl, iF 50 units of tem A and 75 units of item 8 were ordered, but 50 units of items A and 60 units of tem B were delivered, the fil rate 125), #1), A Ume-hased order fit rate model for spare parts, available at fe n158420/"/scrptio_E Raesen.pat R., Pekee, A, Robes, FS. and Song, JS. (1998), On the ordor fl rat in @ mult-tem, base-siock inventory system, available at org/itation cfm7id=767685 ), Achieving higher ord fil rates through integrated channel order fulitment, available a: comiertcles-uhitepaperslachioving-higher-order-fil-rates through inlogratad-channelorder-fufilment asp Measure owner (it) Data custodian (tile) Measure owner (name) ‘Data custosian (name) ther users of source data Reports containing the KP Data source (report or system) Data source area Earllest data avatabe 2s of (dato) “Timing of data procuction Latest data avaliable as of (Gate) ‘Lead time or data avaitility Cost of using tne KPI KPI matty lovet srciezzt ‘Tue KPI Instirure *Tresmart coe in pertrmance maragerent smartKPIscom Top 25 Logistics and Distribution KPls of 2041-2 Functional Areas ‘Sub-categories Industries ‘Suely Chain, Procurement, Disbution Logistic /Oistibcton Manuetces | rogue & Qusity Maragemont Production KPI record Indicator type Unit type ‘sKss00 Key Pertormance Indicator % Name 2 = Ss = % Recovery yield rate of returned products Definition Moasures the percentage of product tums that were valued again, from overall tured products. Variations % Recovery yield rate % Recovery yield Related KPIs % Final products which do not cet quay ctor Tags reverse logistics ‘Subordinate measures used for calculation Valued returned products (sold again) Be# Retumed products Calculation formula Formula type ‘Trend is good when way100 Rate Inewoasing Purpose ‘To monitor the effectiveness of logistics supply of returned products, BSC perspective Measurement focus Impact stage “Internal Proceso Volume Output Indicator focus Measurment ype Level Lagging ‘Quantitative Operational Data capture period Standard reporting frequency Data integrity Month Monthy Meaium ‘Automation fit Limitations Recommended ‘Accurate reporing on this KPI requires a tracking system that © The KP! Insiu 1D number: skO‘The smart Goce in perma Notes ‘Targets may vary between diferent product ines, organtzations, and industries. Groon: >60% she ropricing of th retumed products. It is commonly usod in industries like automobile manufacturing, pub/isese/Svatoyilesucs.pat The impact of networked RFID on product remanufacturing, available at hip:lmww.auioidlabs org uk/presentatlons/AKCLSC. pat 5, 5. (2009), Cost-beneft analysis of sansor-ombadded products based dieassembly-o-order system, available eavviowecontont.ogartle=1012&context=mech_ind_ong fac pubs Van de Velde, T. (2000), Organizing casec-oops forthe reirival of waste products: Reverse logistics, avaiable at FRUGO*0017382/240RUGOI-001392240_2010_0001_AC pat ‘Measure owner (ie) Measure owner (name) Date custodian (tle) Data custodian (name) KPI origin Priority Other users of source data Reports conlaining the KPI Data source (report or system) Dats source area Earfost data avaiable a of (dato) “Timing of data production Lat data avaiaole 28 of (ato) Lead time for daia availabilty (Cost of using the KPI KPI maturity level = eKotz0221 ‘Tue KPI INstrruTe | ® ics and Distribution KPls of 2011-2012 smartKPIscom 'smartKPls.com Top 25 Logistics and Distribution KPIs of 2011 Functional Areas ‘Sub-categories, Industries ‘Soosy Chain, Proouremant Distibuion Logis /isrton any Ponoo and Project Management Projo Menagament KPI record Indicator type Unit type =xe388 ‘kay Portormanee mescator % Name Bae _ % Delivery deadlines met Definition Measures the percentage of service delivery request that were met on timo out of th total deivary requests, Variations 4% Project delivery deadines met Related KPIs Customer shipment fo delivery eye time Tags olivery, deacine ‘Subordinate measures used for calculation A= # Dalvery deadines met 1B =# Dolvary requests Calculation formula Formula type Trend is good when wsyt00 Rate Increasing Purpose Te track the operational discipline in coordinating and executing a project, according tothe planned schedule BSC perspective Measurement focus Impact stage Intornal Processes Volume Outcome Indicator focus ‘Moasurment type Level Leading Quantitative ‘Operational Data capture period ‘Standard reporting frequency Data integrity Month Monthy High ‘Automation fit Limitations commended ‘Measurement requires wellfinctioning sysioms to capture data on project delivery time and stat » ‘THE KPI INSTITUTEhe sare choc in prermance manageet and Distribution KPIs of 2011-2012 smartKPls.com Notes TTargots should bo sot according to tho business, the specific project, clients expectations and ‘competition level of performance. A low level of this KPI can greety aflect the company’s reputaton because unsatisfied clients wil not racommand the company's services. Yellow: 70-80% Green: >80% eam should prionze projects according to their importance. Overdue and high Importance projects should be analyzed and solved. nto stop projects from becoming averdue. Jnowe-to-meet-deadlines-and boost-performance! 2), Dativering 2 quality service across the UK - Sameday light haulage and romovale, avaliable at itp limww daviecourirs.co.uki fing (2012), Project eeycle management, available at not aulLifecyce.him Errors (2012), Key Performance Indicators (KPIs), available at: htp/iwww.5error.comvka html fields recommended for internal use ‘Measure owner (ite) Data cuctadion (tle) Measure owner (nme) ata custodian (name) Other ueots of source data Reports containing the KPI Data source (report or system) Data source area aries! data avalabio a of (date) Timing of data production atest data avaliable as of (date) Lead time for data avalabity Cost of using the KPI KPI maturity tevet ‘Tue KPI INstrrute *smartKPlscom Top 25 Logistics and Distribution KPls of 2011-2 Functional Areas, ‘Sub-categorios Industries ‘Supely Chan, Procurement, erbuton Logis / Detion boy KPI record Indicator type Unit type sxo047 smartkt % Name % Perfect order delivery rate Cimon 2 Definition "Measures the porcentage of perfect orders delivered, fom the folal numberof orders, itera for perfect orders can be set by each organization. Variations: % Perfect deverios Related KPIs 5% Delivered ln-Full, On-Time Tags delivery ‘Subordinate measures used for calculation Poriect delveries B= # Dalveries ‘An example of perfect orders can be the orders that are: dfvared in ful, o customer commit date, in pore condition and with accurate documenta Calculation formula Formula type ‘Trend is good when apyr100 Rate Increasing Purpose “To incicate the qually and efficiency love of distribution services to olen, BSC perspective Measurement focus Impact stage Internal Processes ‘Salisfacion Process Indicator focus Measurment type Level Leading Quantitative Operational Data profilo = Data capture period ‘Standard reporting frequency Data integrity Week Weetty Low ‘Automation ft Limitations Not recommended Accurate reporting requires constant monitoring of al deliveries and comparison of arrival tm promised times. (©The KPI Institut » ‘Tae KPI Instirute 1O umber sKOtNotes ‘customer loyal. Yolow: 70.90% roquired. ain orgstMlesIGarcner ppt smartkPlscom ‘A low rae of perfect order delivery can have nagative impact onthe business, as clonis might consider that their requirements and needs are not salted accordingly. High value for this KPI can lead to Groen: >90% ‘he distribution service can ensure that the system is efficient in carrying out onsime and complete deliveries of the products and ced by factors that cannot be controlled by the cstbuion service, such as weather or accidents ‘Supply chain management best practices. Hoboken: John Wiley & Sons, nc., Page 31 baum, R. G. (2003), Supply chain oxcollenco: A handbook for dramatic improvement using the SCOR model. AMACOM-American Page 172 ‘Application of the SCOR model in supply chain management. New York: Cambria Press, Page 109, Measure owner (tl) ‘Measure owner (name) Data source (eport or system) Earlost data available as of (dat) Latest data avaiable as of (dato) ‘Cost of using the KPI aia custodian (tile) Data custodian (name) ther users of source data Reports containing the KP Data source area Timing of data production Lead time for date avalabiy KPI maturity level Tue KPI Instrrure =The smert coc atormancs manageert smartKPIscom Top 25 Logistics and Distribution KPls of 2011- Funetionsl Areas ‘Sub-categories Industries Supey Chan, Procurement, Distrbaton ‘ogists /Dsieaion ay KPt record Indicator type Unit type 3k002 ‘Koy Porlormance ineestor * Name % Orders picking error rate ce jon and vari | Definition Measures the percentage of order picking errors recorded out of the otal order pickings. Variations % Picking error rato Related KPIs, % Orders with wrong tans shipped Tags | orders, cistioution Subordinate measures used for calculation A=# Ondors picking enor B= # Onder pickings ‘Calculation formula Formula type aip)*100 Rate Purpose ‘To monitor the effectiveness of order picking activites. BSC perspective Measurement focus Intomal Processes Quality Indicator focus Measurment type Leading Quantitative Data capture period Standard reporting frequency Data integrity Month Monty Medium ‘Automation ft Limitations This KPI does not highight undetected errors,istics and Distribution KPls of 2011-2012 smartKPIs.com Notes “Targets should be set cose to zero, but due to human error a certain percentage can be considored acceptable. Yellow 5-10% Groen: <5% ais E* picking erors can be damaging for customer satisfaction Extra time and cost may be involved in eturing and reworking the incorrect edulhresea/avaliablelets.09122006-154340)unrestrcted PratkPa th Dissertation pat ch edu/researcvsupply-chainresteucturing pa lousorcontent.com/search?q=ceche:ykDI4DQINNsJ www. exifin.comfworkshop_fles/Supply%2520Chain%2520Metrcs.doct422%423, cle+ime%22ssio:com+supplyehainghi=en 9 Services (2012), The BOSS hasic order lection systom, available at srdocuments/F AC/bossipdl_boss_wht_paper POF jand Logistics IT (2008), CDC Supply Chain increases producthly for Tuko, avaiable at: sil. comfabsolvtonmtormplaleslarclo-voice. aspx articleid=37978zoncid=29 jal fields recommended for internal use Measure owner (tite) Data custodian (ite) Measure owner (name) Dalia custodian (nara) Other users of source data Reports containing the KPL Data source (report or systom) Data source area Eatlost data avaiable as of (date) Timing of data production Latest data available as of (date) Load timo for data availabilty Cost of using the KPI KPI matury levelsmartKPlscom Top 25 Logistics and Distribution KPls of 2011 Functional Areas ‘Sub-categories Industries ‘Supply Chin, Procurnen, Daitdion oasis /Bsibuon “eanepotton| Land Transpo (Road & Ra Postal and Cour Sertoas Marne Teenspot! Shipping KPI recors Indicator type Unit ype oka795 ey Performance indicator * Name # Transit time tiie a Definition "Moasures the time it takes for 2 shipment, usually meesured in hours or days to ative fom the departing point, up to arval point. oF customer loa Variations 4 Shipment transi ime ## Freight tansit time Time in transit Rolated KPIs % Transit ime vaiaity Tags moines GUI ‘Subordinate measures used for ealeulation Transit duration (expressed in hours or days) Calculation formula Formula type ‘Trond is good when Volume: Decreasing A Purpose To indicate the shipping effecivoness regarding achloving an optimal ransit time. BSC perspective Measurement focus Impact stage Intomal Processes Duration Output Indicator focus Measurment type Level Leading Quantitative Operational Eno = ee Data capture period Standard reporting frequency Data integrity Moth Monthly Low ‘Automation Fit Limitations Not recommended ‘Accurate data gathering is dependent on a tracking system ofthe transi ime of ll shipments.“he smart choc in patomance management ogistics and Distribution KPls of 2011-2012 smartKPlscom Notes Targols may vary according to the industry, the distibuton channols used, the distance between locations, weight and sizeof the shipment. Usually the results are compared to standard transit ime. Yalow: 10-80 Green: <10 ois r customer expect an estimated time. Therefore, In order to create the right expectations for the customer, it Is important to keep a. the lowest time of transit possible and including a buter timo. rxprees.conship/TransiTime.aspx. 4 Denno, P. (2007), Dealing with data deficiencies, avilable at: hitp/imwu meLnst govlims/docs/AIAG-actionine-comerforddenno.paf g Maliud, M. (2008), Transit-ime distributions in a global ocean model, avalable at hil: sjournals.ametsoc.orgldoipdl/10.1175/JPO2800.1 arctic Program (2009), Packing and shipping instructions, avalable at: ht:/iwww.usep.gowlogistcsidocurments.O-A-100 pdf I fields recommended for internal use Measure owner (tile) Data custodian (ile) Measure ownor (name) ‘Data custodian (name) 1 pumber thor users of source data ‘Reports eootaining the KPI Data source (report or system) Dota source area Earoot dala availabe a8 of (ato) Timing of data production Latest data avallable as of (date) Lead time for data availability ‘Cost of using the KPI P| matunty level Tue KPI INstirure ©= “he amar chs in performance management smartKPlscom Top 25 Logistics and Distribution KPIs of 201 Functional Areas: Sub-categories Industries ‘Supply Chain, Procurement, istrbuton Logis /Disirtuton ey KPI record Indicator type Unit type sx700 Key Performance insiestor % Name = % Distribution cost ees Definition Measures how much the dstibutlon cost per rip ropresants out ofthe sales dotivered by that specific trip Variations % TDC of devered sales value Rolated KPIs, ‘% Reverse logistics cost to dalvered sales value Tags tc, disibution, logistics Subordinate measures used for calculation A=$ Total dstibution cost B=§ Dolvered soles value Calculation formula Formula type ‘Trond is good when veys00 Fate Decreasing Purpose To provide an indication of he efficacy in increasing profitable distribution of products, and cost optimization for logistics and supply chain managt BSC perspective Measurement focus Impact stage Financial Money Output Indicator focus Measurment type Level Lageing Quantitative Operational Data capture period Standard reporting frequency Data integrity Month Morty Low ‘Automation fit Limitations Recommended To have 2 complete view on the formula for this Indicator, It Is necessary to calculate Distribution Cost (TDC). It can be calculated total costs of freight cost, inventory cost, {28t. Some companies consider also the "cost of lost sales due to delayed delivery” 2s part of * Tue KPI INSTITUTE7 ogistics and Distribution KPIs of 2011-2012 smartKPIs.com The smart coce m perfomance anagem Notes ‘These targets are highy influenced by the nature of business, the industry and type of businoss- i manufacturer, retailer of wholesaler. Also, managing the toil istibution cost and be level of sales delivered direct impacts these numbers. ‘This KPI should be 2s low 25 possible, asa low lovel shows that managing este and inating sales are highly balanced and wel managed, Yellow: 30-50% Groen: <20% ution should be seen 2s an integrated system that needs optimization inorder to assure the total detrbution cost at he minimum lovel pr distribution costs to be minimized regard ransporaton, order processing, cost of lost busines, inventory carrying cos, packaging and (2005), Industrial marketing. Debi: Tata McGraw-Hill (2005), Dist bution costs B allocation and pricing: A brief white paper prepared forthe Utah cost-ot-service and pricing task force, available com aulurt?sa=tércl=jSq=Esource-webScd=108ved=OCGoOFIAJBurtp k3A%2F%2F muy. psc ulah gov k2Fuslies%2Felectic%2FO4 2 Exhibit? COS%4252072-18 dookei=hrZ- UIPgEYTBIAb2}Y.GICg&uusg =AFJCNHSIADYRNMals0r0OS0L jm. 7), Foe disbuton or cost-sharing? Evidence from a randomized malaria prevention experiment avaible at ngs.edulresearchipapersi2007/2imalaria-cohen ial fields recommended for internal use Measure over (ite) Data custodian (ite) ‘Moagure owner (acme) Data eusiodian (name) ‘Other users of source data Reports containing the KP! Data source (report or system) Data source area Eorioa! data avaliable a of (date) Timing of dota production Lost data avaiablo as of (dato) Load timo for data availablity (Cost of using the KPI KP! maturity level isto 2012 exco120221 Tue KPI Instirute *smartKPlscom Top 25 Logistics and Distribution KPls of 2011-2 Functional Areas: ‘Sub-categories Industries ‘Supply Chan, Precureme, isbon Logltes/ Detain ‘Transporation ‘Aes Postal and Couer Serves and Transport (Rad & Rai) Marie Tanepor / Sipping KPI record Indicator type Unittype x25 mare % Name 2 4 % Transport capacity utilization Ee Definition Measures tho porcontage ofthe transportation capacity used out o the total weight transport capacly available Variations % Storage uiizaion %% Vessel capacity utlzation % Capacity uiiizaton °% Average weigh uiization Related KPI ‘Transport capecty avalsble Tags transport, storage, cargo, capacity gg ‘Subordinate measures used for calculation ‘A= i Ullized transport weight capacity 1B =# Cargo transport weight capac available Calculation formuta Formula type Trend is good when wvpyt00 Rate Increasing Purpose ‘To assess the effective usage of transportation capacity, or in other words how welleficient the available transportation storage space is used. BSC perspective Moasurement focus Impact stage Iniemal Procosses Volume Process Indicator focus ‘Measurment type Lovet Loading ‘Quantitative Operational Data capture period. ‘Standard reporting frequency Data integrity Weok Wooly Medium ‘Automation it ‘Umitations Not recommended Accurate data_gathering is dependent on having @ functionaisteamiined system of transportation capacity utiization. »| THe KPI InstirutesmartKP| should be sot s0 that the transportation storage utlizallon not only covers the costs of lwansportation, but alps aban a high profi ‘The higher the storage utlizaton ie, the lower ae the delivery cost, this gonerating an increasing profit Yellow: 70-80% Green: 80% resources Jes that are often used fo determine storage utlization include: sransportaion storage space (raw storage) d raw storage used: fused at ina of poak demand, rage space in each storage volume; d storage used in each volume: g percentage ofstorago used in each volume; demand pariods aquired o store or ratiove an tom of a given size, fot items stored or reviovad: of items handled by the business. Jopenbook ohp?ronord_id=104048pager22 /prntdoculcore/prin4Selen(data/pal OLISILOLIS. KOMPONENTENY:200ES%20LIS pa G. De Baore,P. and Van de Voorde, E. (2008), Transport economics. Antwerpen: De Boock Hoger < MeKinnon, A.C. (2008), The grocery supply chain inthe UK: Improving eficency in ogisies network. international Reviow of Retail Consumer Research, 132): 161-74 ., Eger Il, R. Oger Land Harder, F. (2008), Twin ports intermodal freight terminal study: Evaluation of shipper requirements and required to establish a rai-ruck-marine intermodal torminaln the tin ports of Superior, Wisconsin and Duluth, Minnosota, available at ate. mn.slofw/PDF/Twin%20Pors%20intrn%.20 orminals20Study%20-9s20FINAL pal Measure owner (tite) Data custocian (ilo) Measure owner (name) Dala custodian (name) Klong Prony Data source (ropot or system) Data source area Ears! data avallable 2 of (daie) Timing of data production Latest data available as of (ate) ‘Load time for data availabilty ‘Cost of using the KP! KPI matuy level pce Tue KPI InstrrutesmartKPIscom Functional Areas ‘Supply Chan Procurement Osttbuton KPI record Name $ Backorder costs Definition Measures the costs incurred when @ company is urable to fil an order and must complete it ater. Variations $ Costs por backorder § Backorders cost per unit Rolated KPIe % Orders canceled by aso Tags orders, costs Cen ‘Subordinate measures used for caleulation A=$ Call conter costs B=$ Out eight costs © = $ Packaging suppios costs = $ Warehousing processing costs = Bockordor notification costa G = Backorder toms Calculation formula (HB +CHDHEHFVIC BSC perspective Internal Processes Indicator focus Lagging Peo » | Tue KPI INSTITUTE To indicat the quality level of orders astibution service. Low quality may lead to order cancellations and loss of future orders. Top 25 Logistics and Distribution KPls of 2011-: Sub-categories Industries Logistics /Disnbuton ‘aa Indicator type Unit ype markt s ‘Another calculation formula can be (A*B¥C)D, where: A= § Cosis of expediing $ Coste with loss of customer goodwal C= $ Costs wih loss of sales rovenues = # Back order tems, Formula type ‘Trond is good when Index Decreasing Measurement focus Impact stage Money Output Measurment type Level Quantiatve ‘Operational ‘Standard reporting frequency Data integrity Monthy Low Limitations ‘Accurate data gathering may be dificult due tothe need to separate costs. © The KPItics and Distribution KPls of 2011-2012 Notes Targets should be taking into consideration the influential cost drivers for this indicator, lke loss of ‘customer goodwill and sales revenues. A low level of this KPI can indicate quality delivery and ‘satisfaction of cients, as services are realized according to their expectations. Yellow: 100-150 Green: <100) Dackordors to bo delivered are prone to frequent inquice via email and phone about the status of ther order, increasing the ‘A backorder cost can be discrete, as in the cost to replace a specific piece of inventory, or intangible, such as the effects of costs are usually computed and displayod on a per-unitbesis. Backordors aro oftanpreterred to overetocks because the invisible. oi 10.1002/1520-6750( 199208) 5%30728: AID-NAVS220300510%3E3.0.CO:2-Nabetract tents 17247871956 [comiopsandiumentiordersulilment tory analysis, available at nnsenjORMMiomicicomputationsunitinvant_addot_shorthtm (2004), 4 study of backorder costs for non-sior@ rolalers, available at htpFmagesodox.convuatretalbackorders. pat on, D.R., Willams, TA, Camm, J.D. and Martin, RK: (2070), Quantitative methods for business. Meson, OH; South Western ids recommended for internal use Le Measure owner (ite) ala custodian (ie) ‘Measure owner (name) Data custodian (name) KPI origin Other users of source data Pity Reports containing the KPI Data source (port or system) Data source area Earlost data available a8 of (date) Timing of data production Latest data available as of (éate) Lead ime for data availabilty Cost of using the KPI KPI maturity levelThe smart heicinprtermance management smartKPls.com Top 25 Logistics and Distribution KPls of 2041-2 Functional Areas: ‘Sub-categories Industries Supoy Chan, Procurement, Osbaion ogists / Ditton Postal and Courier Saviens KPI record Indieator ype Unit type, sk3776 ‘ey Pertormancs Indicator % Name % Shipment traceability Definition Measures the percentage of shipments sont va a carrer that provides an order racking system, out ofthe total numberof shiomenis, Variations % Shipment vsibity % Order tracking shipments Related KPIs + Shipment inspections duration Tags shipment Subordinate measures used for calculation ‘A= # Shipmonts with order tracking sysiom B= Shipments Calculation formula Formula type ‘Trend is good when (asey100 Increasing Purpose To indicate the shipment’ traceability loval, asi represents the relative sophistication of the carir base. BSC perspective Measurement focus Impact stage Intomal Procossos Volume Process Indicator focus Moasurment type Level Loading ‘Quantitative Operational Ens Data capture period Standard reporting frequency Data integrity Month Monthly Medium ‘Automation fit imitations Not recommended Accurate data gathering is dopendant on a data repository ofall the shipments, and ofthe order system,The smart dace in petra magi gistics and Distribution KPls of 2011-2012 smartKPlscom m Notes Targets may very according to the legistaton, the industry and the development lovol of the organization. A high percantage of shipments traceablly can suppor the company to isolate errors and bottionoctks in shipping activites. Yalow 50-80% Green: 80% 2n offer upto the minute historical records of shipping activity. They inaicato real ime shipment status, and location pus delivery time. pot ony Io the company but lo the customers as well, suppers, or hid pany logistics supplies. brain.comcontentncogitistransportation/ransportaton-dstibulon/sngle-artle-pagolarticle/addressingthe-technology-oap-to-im docking! argo (2011), Gare Ni Extra Large, available at icergolb2b/wpsiportlp2b/kcaml04_Sj8SPykssy0xPLMnMzOvMOY_QjzkLN4o%dDZnABmB2GZGAf¢RmlL-SUBAT6vh7SuenAoFua dettarbaset xl 3dldyE vd0ZNQUFZQUMNEIVRSB2X7INKNK. 2012), Shipment traceability, availabe at htp:/Wrww.avma.com aulmainfpage:_sarvices_shipment_traceabilty hint pales (2012), Realtime inventory tracoabitty, availabe at; hiip:/wwew.spede,com/supply-cheinfottracesbilty him fields recommended for internal use ‘Moasure owner (ite) Data custocian (ite) Measure owner (name) Daa custodian (nama) KL ongin Other usors of source data Protty Reports containing the KPI Data source (report or system) ata source area Earlest data avalable 28 of (date) “Timing of deta production Latest data avaliable as of (dete) Lead timo for data avalabaty Cost of using the KP! KP? maturity level THE KPI INSTITUTE | ©smartKPlscom Top 25 Logistics and Distribution KPls of 2011-2 Functional Areas ‘Sub-categories Industries ‘Supxiy Chan, Prosirement, Orton ogists Dsrbtion ey KPI record Indicator typo Unit type okzae3 Key Performance indicator 5 Name = $ Cost per ton-mile Definition and variations Definition Measures the average amount of money spent por one mila of cistance traveled in oder fo chip toa customer a ton of purchased merchandise Variations '$ Operating cost per ton-mile shipped Related KPIs '$ Revenue per ton shipped to customer Tags effciont delivery Subordinate measures used for calculation Total cost of shipping anders Total tons shipped to costumers Total distanco, in milos Calculation formula Formula type ‘Trend is good when NBIC Volume Decreasing Purpose ‘To indicate the cost effectiveness of freight, with regards tothe cos evel or shipping the merchandise to tho cient. BSC perspective Moasurement focus Impact stage Financial Volume Output Ingicator focus Measurment typo Level Lagaing Quantitative Operational Data capture period Standard reporting froquency Data integrity Rolling average Monthly Hig ‘Automation fit Limitations Not recommended Data should be available in sccounting reports, In order to monitor this indicator, data collected poriodically «Tue KPI INstiroresmartKPls.com The smarechaceinpromance management Notes ‘Threshold examples vary widaly according to the transportation freight end its capacity utilization. ‘The lower ar those costs, the higher is the distribution profitably. Yellow: 20-50 Groen: <20 ization is drecty connected tothe poftabiltylvel ofthe supply chain management, Transportation cost per ton mie ise highly used n and logistics, because it offers a wide range of comparison possibilies among vehices usad. aul ?sat8rct=ji S.s0uree=webind=88cad=768ved-OCFKOF|AHSud=hitpKSAK2F%2Fwaw. sib. dot. govis2Fto%2Fdoce%aFU toad %:2520C0s{%i2620Program%2520Release2F Ralroad%2520Coat%2520Progrem._Usor%2620Manual,Dee2011 puldci=np! U Dwveusg=AFOICNHTOP302904R JdhipukKSHOYWLSK 0 edlresearch_publleations/999030 teosts:him fFar00q, M. (2003), Tuck costing made! for transportation managers, available aul ?S2=tErct=iq=8.soureo=webBcd=26 cad=fa8ived-OCCOOF|ACEur-iip’3A%2E%2Frilbts. gov¥2Fb%2F AOO0%AF24200% iSei~np'_UiJLGHenDUAbogy GWOwausg-AFO|CNHeMcXZI_DTgeshF pjZHSMHDecgw ‘Company (2012), Application of ‘Cost-per-mile indicator, available at: hiel/vnweinterstatetraveleusieost_pet_ton-mile shim ert Library (2012), Estimating transport costs, avilable at ‘sul sa-t&rct=i&q=8s0urco=webcd=28.cad=ja8ved=0CCYOF|ABBurIhitp%GAK2F%2F bts gov Fb %IF4000%OF4S00%2 = paiéci=np1_UJLGH8nDUAbogyGWOwausg-AF O/CNFYZikwEypQ8uRcDsiIS-SOLIEA0G Measure owner (ta) Data custodian (ile) Measure owner (name) Data easton (name) KPI origin ther users of source data Prioty Reports containing the KPI Date scurce (report or eyeter) Data source area Earllest data avalable 2¢ of (Sato) Timing of data production Latest data avaliable as of (¢ate) Lead time for data availabilty Cost ofusing the KP! KP! matuy level a ‘Tue KPI Instrume =Te smart cae in pertomance management smartKPIs.com Top 25 Logistics and Distribution KPls of 2011 Functional Areas Sub-categories Industries ‘Supp Chan, Pouroment, Dititaion Loxiscs / Distanaion any KPI record Indicator type Unit type sksar sane % Name % Net asset recovery Definition and variat Definition Measures the peroentoge of the recovered valve of products returned (product value extracted from retums minus losses in product value end ests), from overall retumed product value. Variations NAR 4 Not agsel value recovery Rolated KPIs *% Reverse logistics costo delivered ealee value Tags passengers k= i| ‘Subordinate measures used for calculation ‘A= Recovered value of rotumed products B=$ Value of retumed products Calculation formula Formula type “Trend is good when, veyt00 Rate Incseasing Purpose To indicate the effectiveness and qualy of tum and recovery process, BSC perspective Measurement focus Impact stage Financial Money Output Indicator focus ‘Measurment type Level Lagaing Quanttative Operational Data capture period ‘Standard reporting frequency Data integrity Month Moniniy High ‘Automation Fit Limitations Recommended ‘Acourato data gathering is dependent on a wellmainiaied funcional system that tacks the costs involved. ® Tue KPI Instr ‘amber asmartKPIscom — Te smart hese patarnane memgeent Notes ‘Targets may vary acoording to the industry, the goods retumed and the intemal procedures regarding recover. Yellow 30-50% Green: 50% nd resources 0urvo=webSodG8cad=rj2&ved-OCDAQFIACSui=hiip%e8A%2°%2F ww utsystern.edu%42Fbor%2Fprocedur BFforms%2Futs142_9%2Fguidolines_asset_imp.dookai=CBF_UKyZDo7WegaVoYHaAimtue “OJCNEHZVyFasunCjay RAH YG2Img ‘Association Working Papor Sores (2004), Time value of commercial product retums, avalabo at eduls6/1/2008-04 Souza pat jand Logistics IT Magazine (2005), Warehouse management thought leadership, available at .comabsolulenmempletes/atcl-crtcal aspx?arlcleld=6¢0&zoneld=31, 8s (2003), Annual report 2003, avaiable at ir. neVExtemal File7tem=UGFyZW50SUG9Mz0yNDADENoaxiSUQSMzl4NzoMF RScGUOM l fields recommended for internal use Measure owner (tte) ata custodian (tie) Measure owner (name) ata custodian (name) thor users of source data Reports containing the KPI Data source (report or system) Data source area Eatest data avaliable as of (cate) Tein of data production Latest data avaible as of (ate) Lead tme for data availabilty ‘Cost of using tho KPI KPI maturity level THe KPI INSTITUTE |=smartKPlscom Top 25 Logistics and Distribution KPls of 201 Functional Areas Sub-categories Industries ‘Supply Chan, Procorament srssion ogists / Dstt Inrasscee Operators KPI record Indicator type Unit type 20613 ‘ey Performance inleator % Name % Port labor cost to terminal operating cost Pe Definition Measures the percentage of pot labor cos rom overall terminal operating costs of general cargo terminals, Variations % Pot labor cast to port terminal operating cost Related KPIs $ Labor cost per hour por ton hansed Tags ort, bor Sic Subordinate meacures used for calculation A= 5 Port labor cost B= § Port terminal operating cost Calculation formula, Formula type Trend is good when @ey10 Ratio Decreasing Purpose “To assess the cost efficiency in terms ofthe labor atthe pos terminal BSC perspective Mozsuroment focus Impact stage Internal Processes Money Output Indicator focus Moasurment type Lovet Lagaing Quantitative ‘Operational Data profile Data capture period ‘Standard reporting frequency Data integrity Month Monthly High ‘Automation fit Limitations, Recommended Data collection can be achieved by using a well maintained financial management system that a tho cost involved. o THe KPI INstiruTeLogistics and Distribution KPls of 2011-2012 smartP\scom Notes Europosn tabour costs typically represent between 40% and 75% of @ goneral cargo torminats perating costs and, even in the captal-intensive container handing industry, they can bo as high as 50% of ola operating casts. (Noteboom 2010) Yellow: 20-50% ‘Groen: <30% ios 0 have labor and technology working together to maximize operational effciencies. The Involvement of labor free in the deployment ofthe is of technology has boen ertical to its successful implementation. As a result ofthe technology deployed, all cargo moving tough the ed and updated in reabtime. This lvel of accuracy resulls in productive vessel and yard operations. tarct=)8q=Sosro=sAsourco-websod=1&vod-0CBKOF|AASur=htip?i3A¥h2F%2F muwporteconorics.eu%2F component%2Fd = dowload'k2F381-2010itma-labour-1,000 g the warehouse space requirements up to 70-80% from the total surface's capacity can be considered as availabe for actual storage 122 in percentage up to 100% i used lo ensure proper ventilation, handling space, passaga Gunn, E. A. (1992), A review of warehouse models. European Joumal af Operational Research, 58(1): 313, (2011), Calculating warehouse space, available at: je. orgresponse/warchouse-managemenl/LOG-2-6-WAREHOUSE-SAMPLE-Colculating20Warehouse%20space. pet A, White, J. A. and Bozer, ¥.A, (2010), Facies Planning. New Jersey: John Wiey & Sons, ine: 217 al fields recommended for internal use ‘Moasuro owner (ite) ‘Data custodian (to) "Measure owner (name) Data custodian (narne) KPI origin Other users of source data Priority Reports containing the KPI Data source (report or system) Data source area Earliest data avaliable as of (dato) “Timing of dala production Latest data availabe as of (date) Lead tie for data availability ‘Cost of using the KPI KPI matuny level Tre KPI Instrrure ©The smart cc mn pexfomance management smartKPIscom Top 25 Logistics and Distribution KPIs of 2014 Funetional Areas Sub-categories Industries Septy Chan, Procarement, Disbuten Logis /Detabuton any KPI record Indicator type Unit ype 47608 Key Performance indicator % Name % Warehouse capacity use rate Core as Definition Measures the percentage ofthe warehouse capacty storage tha & actually used, from its tata storage capacity, Variations: % Warehouse capacity utilization % Uilization rato for waronouse space Rolated KPIs # Weight stored Tags storage optimization i ‘Subordinate measures used for ealeulation ‘Ae # Warehouse space used fr storage B= # Warehouse storage spaco Calculation formula Formula type ‘Trend is good when, vay100 Rate Increasing Purpose To monitor the capacity usage of warehouse. BSC perspective Measurement focus Impect stage Intemal Processes Volume Process Inciestor focus Measurment typo Level Loading ‘Quantitative Operational Data capture period Standard reporting frequency Data integrity Spot Monthy Medium ‘Automation fit Limitations Not recommended ‘Accurate reporting on this KPI requires the estimates on space usage, which may be hard too «Tue KPI INstrruTe DsmartKPlscom The smart che in pefmancs manager istics and Distribution KPls of 2011-2012 Notes ‘Targets may vary according to different indusives, inventoryproduction models, stock bulking cycles, ‘seasons! demand cycies, and warehousing practices. tow: 50-70% Green: >70% res tant measure to benchmark warchouse performance. Itis important to set the aim capacity utlization rate with consideration to customer (2010), Warehousing eficiancy and efeciveness inthe supply chain process, available at -comlarlclewarehousing efficiency are_effecveness_in_the_supply_chain_process! {2010}, Amazon warehouses aver-xapadty -FBA sellers in lmbo, avallable a Etiondytes.com/egl-bivblogibig pl?/p2010/11/1289149266 html (2008), Warehouse efficiency, available at 9. cominetogistiVviogisk-kennzahler-logistcs-key-performance-indicators-6019/warchouse-fiiancy-8 156547! onal fields recommended for internal use pe ‘Measure owner te} ‘Measure owner (namo) ‘Data custocfan (ttle) Data custodian (name) KPI ogin Prionty Data source (report or system) Earliest data avaliable as of (cats) Lolest data availabe as of (ato) CCost of using the KPI THe KPI Instirure * Other users of source data Reports containing the KP Data source area Timing of data production Lead time for data availabiity KPI matury levelThe smart coc performance manager smartPls.com Top 25 Logistics and Distribution KPls of 2011 Functional Areas. ‘Sub-categories Industries ‘Suply Chain, Procurement Diibuton ostes/Disututon ay KPI record Indicatoe type Unit ype x26 ‘oy Porioance inciestor % % Premium freight charges Definition and variations Definition Measures the percentage of premium freight charges (le. charges that occur for shipment of order other than ground transportation), out ofthe i charges, Variations ‘% Premium feight charges from total charges Related KPIs '§ Port charges per throughput tons Tags freight, cistebution = ‘Subordinate measures used for calculation ‘A=§ Promium freight charges B=$ Tota right charges Calculation formula Formula type Trend Is good when ave100 Rate Increasing Purpose: To evaluate the cost efcioncy of shipment. BSC perspective ‘Measurement focus Impact stage Intomal Processes Money Process Indicator focus Measurment type Level Lagging Quantitative Operational Data capture period ‘Standard reporting frequency Data integrity Month Monthly High ‘Automation ft Limitations Recommended Accurate reporting on this KP requires a well-maintained functional systom to capture the releva © The KP! Ini ID number:Logistics and Distribution KPls of 2011-2012 smartKPlscom Notes Targets may vary according organization context and order specifications. Yolow: 20-40% Groen: 40% Bric nereases flexibility when companies necd to make quick decisions, react rapidly to marketplace changes, and launch products speedily. Bouniogistics.comvems/anticlepemium freight: makes itt’ 1), Supply chain management logistics, avalable at << org/knowladge-basoidowmload/32039/a%43A1%9A%7BI%3A1%388%3A1%3A%222%22%3B%7 Dine. pdF2destination=node!32039 Chain Logistics (2008), 2008 GMA cupply chain logistics survey. availabe a: hare.ne/TheSupplychainnicheldownloadoe-4266017 ‘North America LLC (2010), A supplier's guide to a successful business relationship with Daimler Trucks North America LLC., avaiable at: -portal.covisint comicidocument. rarylgetle?uid=2h157083-c000-44f3-a1ab- 158481 a2otoqroupld=12470" onal fields recommended for internal use Measure owner (ile) Data custodian (tile) Measure ovmor (namo) Data custocian (nama) KPI origin Other usors of source data Prionty ‘Reporis containing tno KP| Data source (report or system) Data source area Earliest data available as of (date) Timing of data production Latest data avaible 2s of (date) Lead time for data availaoity Cost of using the KP!‘The xmart coc patonmance manager smartKPIscom Top 25 Logistics and Distribution KPls of 2011- Functional Areas ‘Sub-categories Industries Sloe and Customer Senseo (Customer Service fo ‘Supply Chan. Procirament, lstnbalon Logit /Dstiton KPI record Indicator typo Unit type a6 Key Performance inleator * Name =a ee % Orders delivered with damaged products Gl Definition Measures the rate at which tho ordors dolivered contain damaged products or ites. Variations: % Damaged orders % Frequency of damage Related KPIs Order ft rate Tags dolvery GGEEE ‘Subordinate measures used for calculation A= # Orders delivered with demaged items. B= # Orders delivered Calculation formula Formula type ‘Trend is good when vey100 Rato Decreasing Purpose To assess the ransporation service quali. A high level of orders delvared with damaged products indicates a low quality raneportation sonvce, BSC perspective Measurement focus Impact stage Internal Processes ualiy Output Indicator focus Measurment type Level Leading (Quantitative Operational Data capture period ‘Standard reporting frequency Data integrity Day Weekly Low ‘Automation fit Limitations Not recommended Using ths measure requires a reliable eystem for tracking, reporting and centralizing the d ‘occurred during transportation, ®| Tae KPI InstrruteNotes A high percentage of damaged products shows low service qualty in delivering product. this occurs, Procedures should be se in order to minimize future occurrences and deal with stomer complaints, Yellow: 10-20% Groon:<10% sofa KPI fr tracking delve system quel. Clumsy product handing, inadequate packaging, voor diving and inaperopiate handing {Common causes of high damage rates. 8 ae sulable for transportation Is also relevant pom Wiley COM Wiley TWe/productCu-0787976202 hi iow ikea. coms/on_GBleustomor_eetvicelshop_onlinelabout_retums. mt A. (2008), Key Performance indicators (KPI) rolated with Key Resull Areas (KRA), available ot -iteligence.com/200802/25ikey-porformanee:incicator-Kp-related- with koy-resull-areas-Kral Potter, A. Mason, R. and Mohamed, N. (2008), Aligning transport performance measures with customised ala logistes: A structured method Eaton, Intarational Joumal of Logistics, 11(6): 457-473 ‘Measure owner (te) ata custodian (tile) ‘Measuro owner (name) Bata custodian (name) ‘ther ueors of source data Reports containing the KPL Data source (report or system) Data source area Earliest data availabe 29 of (date) Timing of data production Latest data avaialo as of dato) Lead ime for data availabilty ‘Cost of using the KP! KPI matunty level stitute 20 skot20224 Tue KPI Instrrure =. smartKPIs.com Top 25 Logistics and Distribution KPIs of 2011 The amart oc in pertomance manage Functional Areas Sub-categories Industries ‘Sieey Chan, Pronrement, Ditton ogists / Deron Any KPI record Indicator type Unit type sk2e7e Key Performance Iniestor % fess = aie | % Reverse logistics cost to delivered sales value ESiimeeke Denon Measures te poronage of vero lt col, to he valu ofthe dlveed goods, The reverse lps represen te operators con ‘cinton seit wit roduc of ono, tar pont oe, | veretone Teatro sacs [Se Rovere tos cot to valu of dtvrad goods | rate Kete 1% Net asset recovery Tags delivery Sen ‘Subordinate moasures used for calculation Reverse logistics cost Value of delivered goods Calculation formula Form: Trond Is good when wvey*100 Rate Decreasing Focus Purpose To indicate the effectiveness and quably ofthe delivery process, BSC perspective Measurement focus Impact stage Fioancial Money ‘Output Indicator focus Moasurment type Level Lagaing uantiative Data profile Data eapture period ‘Standard reporting frequency Month Monitly Low ‘Automation ft Limitations Not recommended Accurate data gathering is dependent on clearly defring the reverse Ingictice activites ‘company and the afferent costsNotes Targets may vary according to the industry, the goods delivered and the intemal procedures rogarsing| reverse logistics. Yellow: 5-10% Groen: 5% es Es is mainly the process of moving goods from their typical nal destination (customer) for the purpose of capturing value, or proper disposal E sciviies include: warehousing, repair, refurbishment, recycing, waste management, after market call conler support, reverse fulfmet selogisiestrends.comiteverse-ogistics php D. A. 2010), Reverse logistics - effective returns management fn an integrated supply chain, available at .comiartcofefecive_retums. management in_an_integtated_supply chain (2004), Reverse logistics: Quantitative model for elazed-oop supply chains. Retin: Springe-Verag jstics Executive Counel (2011), What is roverse logistice?, available a hilpimwwcslecogiglos sary him ‘Measure owner (to) Dala custodian (ie) Measure owner (name) Data custodian (name) Kel origin ‘Other users of source data Priority Reports containing the KPI ‘Data source (report or system) Data source area Eatilest data available as of (fate) “Timing of data production Latest data available a3 of (ate) Lead timo for data availability Cost or using the KPI KP! maturity level 129221smartKPIs.com The smart choc in perfomance management Functional Areas ‘Sub-categories industries ‘Supply Chan, Procxement,Distbuton Logics /Bobuton “Transporation Aries Postal nd Couner Senices Land Transport Road & Rap Maino Transport? Sipping Loe Pub Tranapet KPI record Indteator type Unit type 9255, Key Performance ineicator s "Name $ Fuel cost ‘Definition and variations aes Definition Meaeutes the costs incurred wit fuel consumption per ti, Variations $$ Fuel consumption cost Related KPIs Petrol and diesel used Tags {ual diatibution Calculation ‘Subordinate measures used for calculation A=# Trip! fight fel ‘Aless accurata calculation method is: Fuel cost= rip hours* average fuel consumption” average (C= Fuel price at departure station aleulation formula Formula type ‘Trond is good when, ABC ‘Composition Decreasing Purpose ‘To assess the financial implication ofthe fuel consumed per trp, whlch Is a constant part of distribution or transportation cost. Protaity fe gt Indieator i ow. BSC porspective Measurement focus Impact stage Francia Money Cutout Indicator focus Measurment typo Lovel Leasing Quantitative ‘Operational Ean Data capture period ‘Standard reporting frequency Data integrity Day Weekly Low ‘Automation fit Limitations Not recommended ‘Accurate data gathering is dependent on a monitoring system of the distribution / transport correlated to fancal data regarding the cost of fuel consumption. oe KP) | THE KPI INSTITUTE 10 pumbor7 gistics and Distribution KPIs of 2011-2012 SmartKPlIscom Te smart dicen pam mama Notes Targets may vary based on the transportation or distribution nature, the average fuel cost and the distance per trip. Low indicator lovels and fuel consumption shoul! be targeted, Yellow: 1000-1200 Green: <1000 ees transports, Fuel cost, can also be considered as percenta 300 of total ight cost. Fuel consumption varies depending on the airplane 1 operating poly and mainlenance. omy qoutfogieavemoney: shtml sltor aaa corn! . (2008), Performance matics used by teigh ranaport providers, available at b.odulresearch/docurents/1017FinalRepont pd (2002), Profit sratogies for air transportation. McGraw-HiE Companies, ine. =higan Attorney General (2011), Ges prices, avalable a: hip www michigan govlagl607,7-164-17384_17962-99060—,00 him) ‘Measure owner (ite) Data custodian (tile) Measure owner (name) Data custodian (name) KPI origin thor users of source dats Priority Reports containing the KPI Data source (report or system) ata source area East data available as of (date) ‘Timing of data producuon Latest data avaible 28 of (dato) Lead time for data availabilily Cost of using the KPI KPI maturiy level “THE KPI INstrrure =Thesmert chace in petomance meget smartKPIscom Top 25 Logistics and Distribution KPIs of 2 Funetional Areas ‘Sub-categories Industries Supty Chain, Procurement, isbn Logistics /Dstaston any KPI record Indicator type Unittype sk6961 Key Performance indiostor 5 Name $ Delivery cost per truckload shipment CII Definition Measures the average delivery cost per tnuckload shipment. Variations 1#Mean trucKoad shipment davery cost Rotated KPIs $ Delivery cost per order Togs detivary bt ‘Subordinate measures used for caleulation A= 5 Trucklood shipments detvery cost B= # Trucklosd shipmonts dotvered Calculation formula Formula type 4B Average Purpose To a39665 the cost of truckload shipping in supply cain management, BSC perspective ‘Measurement focus Financial ‘Money Indicator focus ‘Measurment type Lagging Quantitative Data capture period ‘Standard reporting frequency Data integrity Ment Nonthiy High ‘Automation ft Limitations Recommended ‘An integration of shipping management and finan porting eystoms is essential for this KPI The KP instil THE KPI INSTITUTE D numba eke