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The Logistics Management Indicators

One of the determining factors for any process, whether logistic or production, is carried out successfully, is to implement an adequate system of indicators to measure the management thereof, so that indicators can be implemented in strategic positions that reflect an optimal result in the medium and long term, through a good information system that allows to measure the different stages of the logistic process.

Currently, our companies have large gaps in the measurement of the performance of logistics activities of supply and distribution internally (processes) and external (satisfaction of the final customer). Undoubtedly, this constitutes a barrier for top management, in the identification of the main problems and bottlenecks that arise in the logistics chain, and which ostensibly affect the competitiveness of companies in the markets and the gradual loss of their products. customers.

Everything can be measured and therefore everything can be controlled, there lies the success of any operation, we cannot forget: “what is not measured, cannot be managed”. The proper use and application of these indicators and the programs of productivity and continuous improvement in the logistic processes of the companies, will be a base of generation of sustainable competitive advantages and therefore of their positioning in front of the national and international competition.

  1. OBJECTIVES OF THE LOGISTICS INDICATORS
  • Identify and take action on operational problems
  • Measure the degree of competitiveness of the company against its national and international competitors
  • Satisfy customer expectations by reducing delivery time and optimizing the service provided.
  • Improve the use of resources and assigned assets, to increase productivity and effectiveness in the different activities towards the final client.
  • Reduce expenses and increase operational efficiency.
  • Compare with companies in the sector in the local and global scope (Benchmarking) 
  1. IMPLEMENTATION SCHEME

Indicators should only be developed for those activities or processes that are relevant to the company’s logistical objective. For the above, the following steps should be taken into account:

  • Identify the logistics process to be measured
  • Conceptualize each step of the process
  • Define the objective of the indicator and each variable to measure
  • Collect information inherent to the process
  • Quantify and measure the variables
  • Establish the indicator to control
  • Compare with the global indicator and the internal competition
  • Follow and feedback the measurements periodically
  • Continuously improve the indicator

 

  1. CLASSES OF MANAGEMENT INDICATORS 
  1. MAIN MANAGEMENT INDICATORS 
  1. CUSTOMER SERVICE INDICATORS 
  1. FINANCIAL INDICATORS