Logistic Indicators

Indicators are management tools used to measure a company’s bottom line. With its use, it is possible to define and monitor goals, to achieve specific business objectives.

In order to achieve good results in its logistics, the use of indicators is essential for analyzing information and monitoring points of improvement in the area.

To facilitate your work, we have prepared this text with 5 main indicators that you must follow in your logistics department.

Check it out below:

1. On-Time Delivery

This indicator is also known as “On Time In Full” (OTIF) and its main purpose is to identify possible problems in order fulfillment.

The calculation of this indicator considers the orders delivered within the given period and the total orders, as shown below:

Total deliveries made on time / total deliveries x 100

The result will be found in percentage and we recommend that it remains above 90%, otherwise, it indicates that there are operational problems in your delivery process.

2. Average Delivery Time

Unlike item number 1, the purpose of this metric is to track the time needed before the product is delivered to its recipient.

In this model, time is measured from the moment the customer places the order until the delivery of the goods.

The indicator allows you to evaluate the average delivery within your processes, to inform the customer of the appropriate deadline.

3. Number of occurrences

This indicator shows the number of incidents that occur from the transportation of the cargo to the delivery of the product to the customer. Examples of incidents that may occur are: delays, order errors and cargo damage.

4. Cost of transport and storage

Understanding your efficiency by analyzing your costs is a practical way of measuring the effectiveness of your results. In this indicator, we can work with some formats, individually, for example with the “Total of your cost / employee” or individually, comparing values ​​with previous periods.

5. Customer satisfaction

Customer satisfaction referrals are an efficient way to measure the efficiency of your business with your customer. Surveys can be carried out at the end of delivery or on an annual basis.

The operation of these surveys can be carried out by phone, digitally or using a form, work with closed questions, which allow the final classification.

Do you want to know more indicators or how we can make your logistics more efficient?

Contact us to know our services and know our solutions.