Logistics encompasses a complex set of activities which require a collection of metrics to adequately measure performance. Ideally, the performance metrics used should be selected and maintained as a system, so they complement and support each other and provide the decision makers with a well balanced picture of the logistics process. Often in practice, however, performance measurement systems are not formally managed or evaluated. The result is a performance measurement “system” where the interrelations between the metrics are not known, duplication is frequent, and omission is undetectable. This paper addresses this shortcoming by developing a set of evaluation criteria for logistics performance measurement systems and applying it in two case studies.

Keywords

• Performance measurement
• Logistics

Citation

Caplice, C. and Sheffi, Y. (1995), "A Review and Evaluation of Logistics Performance Measurement Systems", The International Journal of Logistics Management, Vol. 6 No. 1, pp. 61-74. https://doi.org/10.1108/09574099510805279

Logistics is a backbone for the global supply chains. In Malaysia, logistics are now recognized as strategic industry that positively contribute to gross domestic product (GDP) and performance of logistics is foremost significant. Whereas most of the logistics performance has focused on investigating operational and trade facilitation contexts. Thus, the purpose of this paper is to examine the issues and reviews by practitioners and found 7 key components that translated it into operations…

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23 References

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What are the 5 logistics performance measurement?

Fawcett and Cooper (1998) designed five measure categories to capture performance of logistics: asset management, cost, customer service, productivity, and logistics quality.

What are the 5 key performance indicators in logistics?

15 Best Logistic KPIs Every Logistic Manager Should Track.

KPI

1. Operating Ratio. ... .

KPI

2. Inventory Turnover Ratio. ... .

KPI

3. Inventory Accuracy Rate. ... .

KPI

4. Capacity Utilization. ... .

KPI

5. Pick and Pack Cycle Time. ... .

KPI

6. Truck Turnaround Time. ... .

KPI

7. Average Transportation Cost. ... .

KPI

8. Freight Cost Per Unit Shipped..

What are the key issues and challenges for logistics?

10 Most Common Problems in the Logistics Industry, and How to Overcome Them.

Rising fuel costs. ... .

Lack of planning and forecasting. ... .

Inefficient employee management. ... .

Rising fleet maintenance costs. ... .

Poor communication between the customer and courier. ... .

Damaged goods during transit. ... .

Poor coordination for multiple deliveries..

How do you evaluate logistics performance?

Examples of common logistics KPIs include the order fill rate (the percentage of customer orders that are fulfilled from stock), inventory turnover (the number of times that your inventory is sold or used in a given period), delivery accuracy (the percentage of orders that are delivered on time and in full), ...