Top KPIs for Logistics and Distribution Department
1.Delivery On-Time Rate: Measures the percentage of orders delivered on time to customers, indicating the efficiency and reliability of the distribution process.
2.Freight Cost per Unit: Calculates the cost of shipping per unit, helping to assess the efficiency of freight and distribution cost management.
3.Inventory Accuracy: Compares the physical inventory count to inventory records, indicating the accuracy of inventory tracking and management systems.
4.Order Accuracy Rate: Measures the percentage of orders fulfilled correctly without errors, reflecting the effectiveness of the order fulfillment process.
5.Warehousing Costs as a Percentage of Total Logistics Costs: Assesses the proportion of logistics costs that are attributable to warehousing, indicating cost efficiency in storage.
6.Inventory Carrying Cost: The total cost associated with holding inventory, including storage, insurance, and obsolescence, highlighting the financial impact of inventory management.
7.Return Processing Time: Measures the time taken to process returns, indicating the efficiency of the reverse logistics process.
8.Supply Chain Cycle Time: The total time taken for a product to move through the entire supply chain, from procurement to delivery, assessing overall supply chain efficiency.
9.Fill Rate: The percentage of customer orders fulfilled from stock at hand without backorders, indicating the effectiveness of inventory management in meeting customer demand.
10.Transportation Cost as a Percentage of Sales: Measures logistics costs relative to sales, providing insight into the impact of transportation on profitability.