Measurement. While some will argue that it is a waste of time or unrealistic given the enormous amount of responsibilities given to employees; Its hard not go out there and find that the best of corporations are rigorously measuring their logistics metrics. Some of these measurements can be conducted with help from your third party logistics provider (3pl), but in order to get a full picture of your supply chain it is important to take a look at your whole operation.
Here is a list of common logistics metrics.
- Fill Rates
- Inventory Turns
- Cycle Times
- On Time Delivery
- DPMO
- Order Fulfillment by order or line item
- Order Fulfillment lead time
- Total supply chain management costs
- Order Management Costs
- Productivity per employee
- Forecast Accuracy
- Expenses (SG&A;) as % of Revenue