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INDICATORS OF GOOD LOGISTICS MANAGEMENT IN TIMES OF COVID-19

Logistics takes care of planning and controlling the flow of material and information in organisations. In general terms, its mission is to take the right materials to the right place in the appropriate timeframe while also optimising certain performance measures and satisfying a determined set of restrictions.

At Nordlogway, some of our logistics services clients require management indicators to monitor the efficiency of the logistics processes. In addition to providing our clients with outsourced services relating to logistics, Nordlogway offers clients advice on ratios to identify potential improvements.To this end, in this article we want to make special mention of our KPIs associated with the logistics operations

Their aim is clear: to assess the performance of and results obtained in each of the company’s processes; the optimisation of productivity and costs; and improvements to or consistency in the quality of services provided. In specific terms, we seek to:

  • Minimise errors along the entire logistics value chain. 
  • Adjust costs as much as possible and avoid incurring unnecessary costs arising from inefficiencies, errors, management issues, etc.
  • Increase the productivity of the processes and of the people associated with the logistics operations.
  • Align the logistics with the strategy for the company’s different departments.

Any logistics manual will include the following broad categories for the logistics sector:

  • Purchase and/or supply
  • Storage and inventory
  • Distribution
  • Transportation
  • Order and delivery management 
  • Customer service

Nordlogway is a 3PL operator, guiding the logistics managers at our client companies in the choice of the best indicators for their specific administrative requirements: 

SUPPLY INDICATORS:

  • Lead time.
  • Fulfilment of deadlines.

INVENTORY INDICATORS:

  • Inventory turnover of finished products.
  • Inventory turnover of raw materials and other supplies.
  • Breakage of raw material stock. 

DISTRIBUTION INDICATORS:

  • Units processed per m2. 
  • Productivity in moved volume.
  • Percentage of spaced used.

TRANSPORT INDICATORS:

  • Average transport cost.
  • Cost per kilometre.
  • Number of dispatches per order.
  • Number of non-planned, urgent dispatches.
  • Fulfilment of delivery term (%).
  • Cargo mix to determine whether the route is profitable.
  • Use of transport (%).

ORDER MANAGEMENT INDICATORS:

  • Non-fulfilment of terms (late deliveries).
  • Complete deliveries.
  • Documentation errors (invoices, delivery notes, etc.)
  • Average cost of order management.
  • Order cycle timespan.

QUALITY INDICATORS:

  • Deliveries with incidences (%).
  • Deliveries with incidences according to process stage.
  • Percentage of certified deliveries.
  • Client opinions. 

In this time of crisis, it is worth dedicating some time to optimising the logistics for your company. We cannot afford to be inefficient. At Nordlogway we can study your specific business and apply all our available knowledge and technology to improve your logistics processes. As a 3PL operator, Nordlogway analyses and optimises your company’s resources.

Sources: 

www.mecalux.es: KPI en logística: tipos y ejemplos de indicadores 

https://blog.solistica.com/los-kpis-mas-importantes-en-logistica

Nordlogway is a 3PL logistics provider located in Barcelona that is focused on providing customers with an exclusive, personalised service, guaranteeing the security of your merchandise and the reliability of our deadlines. We have leading facilities and technology, a highly-qualified staff on hand and a large network of collaborators.