KPIs (Key Performance Indicators)

Logistics and Distribution KPIs

By A Staff Writer | Updated 28 Feb, 2024

Top KPIs for Logistics and Distribution Department

1.Delivery On-Time Rate: Measures the percentage of orders delivered on time to customers, indicating the efficiency and reliability of the distribution process.

2.Freight Cost per Unit: Calculates the cost of shipping per unit, helping to assess the efficiency of freight and distribution cost management.

3.Inventory Accuracy: Compares the physical inventory count to inventory records, indicating the accuracy of inventory tracking and management systems.

4.Order Accuracy Rate: Measures the percentage of orders fulfilled correctly without errors, reflecting the effectiveness of the order fulfillment process.

5.Warehousing Costs as a Percentage of Total Logistics Costs: Assesses the proportion of logistics costs that are attributable to warehousing, indicating cost efficiency in storage.

6.Inventory Carrying Cost: The total cost associated with holding inventory, including storage, insurance, and obsolescence, highlighting the financial impact of inventory management.

7.Return Processing Time: Measures the time taken to process returns, indicating the efficiency of the reverse logistics process.

8.Supply Chain Cycle Time: The total time taken for a product to move through the entire supply chain, from procurement to delivery, assessing overall supply chain efficiency.

9.Fill Rate: The percentage of customer orders fulfilled from stock at hand without backorders, indicating the effectiveness of inventory management in meeting customer demand.

10.Transportation Cost as a Percentage of Sales: Measures logistics costs relative to sales, providing insight into the impact of transportation on profitability.