What are the most important logistics KPIs that you have used to drive process improvement?
Here are some important logistics KPIs that can help drive process improvement :
* On-time delivery rate : This KPI measures how many orders are delivered on time compared to the total number of orders. It's a key component of good customer service and customer loyalty.
* Inventory turnover rate : This KPI measures how often a business sells and replaces its inventory within a given period. A higher rate indicates more sales, while a lower rate could mean slow-moving stock or overstocking.
* Order accuracy rate : This KPI measures the percentage of orders that are fulfilled correctly without errors. It reflects the warehouse's ability to pick, pack, and ship the right products to customers.
* Fill rate : This KPI measures the percentage of products or SKUs shipped successfully on the first try. It provides information on the effectiveness of your delivery service and helps gauge client satisfaction.
* Order cycle time : This KPI measures the total time taken from placing an order to its completion and delivery to the customer. It's important for operational efficiency and customer service effectiveness.
* Perfect order rate : This KPI measures how often you deliver what your customers want on time. A lower perfect order rate indicates that something might not be working properly in your operation.
* Return rate : This KPI measures how many goods are customers rejecting. It's important to keep a close eye on this KPI because returns can cause a company to lose money and hurt your reputation.
* Inventory accuracy : Maintaining optimal inventory accuracy is critical to the success of your business, for both profitability and customer satisfaction.
