In today’s supply chain, developing the “right” metrics that improve results are critical for a company’s health. Everyone asks, “What are the Key Performance Indicators (KPIs) that I should measure to improve my supply chain?”
It’s best to first ask: What do our customers want? What will cause them to buy more goods from us? What will they pay more for?
Companies often measure too many KPIs and, after exhaustive analysis, still find that business results are falling short. Others rely on subjective analysis, which may or may not be accurate. For instance, “I’m seeing damaged product, so our damage rate must be high.” Without measurable data, these kinds of assessments can lead down a blind alley.
I would recommend a “less is more” approach when developing your logistics KPIs. Once again:
I would then move these questions into the following categories:
Develop your dashboard, then make sure your entire organization understands your KPIs and why each is “key” to delivering real value for the customer. This will align your team so that everyone knows what winning looks like.
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