Key Performance Indicators (KPIs) Flashcards
What does KPI stand for in logistics?
Key Performance Indicator
What are KPIs used for in logistics?
To track and understand shipment process and supply chain metrics
Why are KPIs important in logistics?
To ensure customer satisfaction and meet delivery expectations
What are the three main types of KPI categories in logistics?
- Procurement
- Logistics
- Transportation
What do Procurement KPIs track?
Processes and costs like inventory cost, material arrival time, and reorder time
What is the purpose of Logistics KPIs?
To track picking and packing processes, order accuracy, and picks per worker
What do Transportation KPIs include?
Freight pick-ups, delivery times, freight cost, and distribution metrics
Fill in the blank: The inventory velocity KPI represents the speed at which each inventory type cycles during a specific _______.
time period
What does the inventory turnover KPI measure?
How many times the entire inventory is purchased in a given time period
What does the customer backorder rate KPI track?
The number of orders that cannot be fulfilled at the time they are placed
What does picking accuracy measure?
The number of orders picked accurately compared to the total number of orders
What does lead time KPI measure?
The time from the order’s receipt to the day it’s delivered
What does the warehousing cost KPI reflect?
The cost to move products in and out of the warehouse
What is the significance of transit time in logistics?
It measures the time from when the carrier picks up the package to when it’s delivered
True or False: On-time pick-up and delivery is a metric that focuses on the punctuality of both pick-up and delivery.
True
What does the transportation cost KPI consider?
All transportation costs spanning order placement through delivery
What is the First-Time Delivery Rate KPI?
The percentage of deliveries made successfully on the first attempt
How can invoice audit recovery programs benefit logistics KPIs?
By catching invoicing errors and recovering funds, leading to cost savings
What can optimizing carrier contracts help with?
Lowering annual costs and positively impacting shipping KPIs
What does the term ‘DIFOT’ stand for?
Delivery In Full, On-Time
Fill in the blank: Higher inventory turnover levels are generally preferable for _______.
inventory management
What does the shipping cost KPI help identify?
Ways to lower costs in logistics
