Supply chain dashboards will surely help in evaluation of logistics performance
Evaluation is a very important process in any company. In order to develop and expand business it is necessary to measure current performance. Indeed, who can you further build business and invest funds if there are serious problems that will simply ruin it? Evaluation is quite helpful in this sense. Being aware of all problems and weak points it will be easier to make a strategic development plan.
Sometimes, it is very difficult to understand what is going wrong in the company, especially a big one that consists of many departments. For example, your sales department may show excellent performance while logistics will leave much to be desired. By the way, logistics is becoming increasingly popular. These days, customers are very picky and companies have to introduce additional services in order to attract new clients. So, delivery of products is one of the most popular services. But timely delivery is something that is valued most of all.
Supply chain dashboards will indicate strengths and weaknesses
Use supply chain dashboards in performance evaluation
As known, logistics is all about delivering product and using costs/transport in an efficient way. For instance, it is possible to deliver mps player for $50 which is its initial cost. Such a logistics department will soon run the company into bankruptcy.
As you can see, it is very important to evaluate logistics efficiency. Logistics is a very complex business and a product or cargo undergoes many stages before it is delivered to a customer. At each stage it is necessary to make sure the product is safe and transported to end user. However, the art of logistics is to make shipment as cheap as possible.
If you want to know how your logistics department is performing you should definitely use Balanced Scorecard System which is a popular tool to measure performance of any business types. BSC system tests individual indicators, commonly known as key performance indicators (KPI). Why KEY indicators? Because these values vividly show business performance and represent main processes in the company.
As to logistics, KPIs here include freight cost per unit, turnaround time, transit time, inventory carrying rate, on time shipment rate, perfect order management, average losses per unit and many others.
In measure logistics performance it is necessary to focus on major KPI that really represent performance of a logistics department. At the same time, it needs saying that most KPIs are interrelated. For instance, increase of transit time decreases customer satisfaction and increase freight cost per unit, and so on.
Tags: logistics indi, supply chain dashboards, supply chain indicators, supply chain kpi, transportation indicator
