| Logistics KPI's include metrics that involve cost, time, | | | | the time variation in completing the shipping |
| percentage, and transactions. | | | | transaction; other indicators which bring complexity to |
| The key performance indicators in the logistics | | | | the shipping transactions, such as number of |
| industry are useful metrics to measure the | | | | documents required to file, the criteria for inspection, |
| performance and progress of activities in logistics | | | | and the percentage of containers inspected in every |
| operation. These metrics can have certain importance | | | | normal shipping transaction. |
| for the attainment of the organization's goals. | | | | Inefficiencies in logistics operation can harm the |
| For the logistics management to be effective in | | | | competitive standing of an organization. Cost and |
| carrying out objectives, it must see to it that | | | | time have interrelated effects. The cost involves in |
| strategies are developed and enhanced, and that | | | | logistics include cost of transportation including fuel |
| there are performance dynamics to support the | | | | cost and cost of warehousing. The longer the time to |
| entire supply chain. | | | | ship goods, the higher the costs would be. |
| Seeing to it that the method of delivery is effective | | | | There are also risks in transporting items that can |
| is a concern of logistics management. This can be | | | | eventually add up to the cost of shipping. Perishable |
| translated by having an on-time arrival of the delivery | | | | items are prone to wastage and spoilage if the |
| to its intended station or ends. | | | | transit time is longer. Products that are time-sensitive |
| It is normal for a business to experience delays and | | | | can eventually lose their value if the time of the |
| downsides during its operation. The logistics industry | | | | delivery is longer. Man-made errors and incompetent |
| is no exception. However, it is a responsibility of the | | | | actions can incur more costs for shipping transactions. |
| management to minimize or eliminate drawbacks as | | | | Indicators that logistics and supply chain management |
| much as possible. Though elimination of drawbacks | | | | must bring into light include: total cost and time for |
| seems nearly impossible yet achievable during the | | | | trade-related procedures, total time to complete the |
| course of the logistics operation, it is still a challenge | | | | document processing, the required number of |
| for a business in the logistics industry to improve its | | | | signatures per shipping transaction, and time to deal |
| standing in the supply chain. | | | | with custom appeals. |
| There are key metrics that can be used to measure | | | | Logistics companies may also have to determine the |
| the performance of a logistics business and operation. | | | | frequency of shutdowns taking place in the port due |
| They include: the average time needed to process | | | | to unusual weather conditions or manmade forces, |
| and complete an import or export transaction; the | | | | the vessel turnaround time, the inland freight cost, |
| cost of the processing of the shipping transaction; | | | | and the average freight cost per destination. |