How to measure your logistics performance?

logistics performance

Logistics work on multiple areas and they require a lot of tools to make sure that every process is being carried out in the way it should be. This is because these supply chains act as a middle-man between the sellers and the customers. So it is essential to keep this part of this loop in the track to function properly. They play an integral part in maintaining an organization, and every warehouse needs to be properly taken care of. Proper logistics has multiple metric tools that help them measure their performance. Below is a list of ten such metrics that helps them to understand better. Read on…

The on-time shipping results

Delivering a product is the primary function of the logistics industry and on time shipment plays a very important role in it. It is a part of the distribution system that takes care of every item that is coming in and going outside the warehouse. This is a highly crucial process and even a minor delay in the shipment can interfere with its functioning. Hence these logistics are extremely punctual when it comes to shipping. This is an important metrics for measuring logistics performance, as it can affect the departure and arrival of the product.

The capacity of a warehouse

Among the list of important logistics metrics, the measurement of logistics performance holds the second position on the list. The above metrics monitor the inventory and to keep an eye on all the items as well. Determining the capacity of the warehouse is very important as it not only gives you the idea of your present items but also helps you to determine its loading time. Accordingly, you can increase and decrease its space. Nowadays there are a lot of digital gadgets to check the warehouse capacity, but a manual verification really doesn’t hurt.

The order fulfillment

The order picking and order fulfillment also plays an important role in determining logistics performance. The logistics need to analyze how quickly are they going to work on the order placed. The time management along with proper shipment process together caters to successful order fulfillment and any minor inconsideration that cause losses in the business. These processes are carried out on digital platforms as manual data handling can cause errors and confusion. Also, these logistics also take care that your order is successfully fulfilled without any damage, breakage, or misplacement of the product.

Proper storage of all the goods

Good logistics is known by the way they store their products. Proper storage also requires tracking just as order fulfillment to ensures accurate deliveries. If a logistics doesn’t have a well-maintained inventory then they will lag behind during fulfilling an order. Other than this, proper storage also allows a timely storage update and can ease out the operational techniques. Losing the track of goods, will not only deplete the product quality but will also cause the logistics to lose its credibility.

Managing peak seasons

Another important metrics for logistics is the capacity to perform seamlessly in peak seasons. This is the area where the most logistics lags behind. Failing to handle orders during rush hours causes a lot of logistics to fail, and faces a huge capital loss. India being a festive country, there are festivals in almost all seasons of the year. It is of utmost importance to find out if your logistics is capable enough or not. The above logistics metrics is the part, where most of the companies come to a stop.

Determining the total and the individual cycle time

This is another important factor as you need to ensure that your warehouse is running seamlessly. The tracking is done in a cyclic pattern covering the entire channel of a product which also includes the entry of the product and the monitoring continues until it is sold. This happens on individual distribution centers and a detailed audit is carried out to understand the entire process efficiency. As per the final score, you can work on the improvement of the logistics.

Dealing with damaged products

Whether like it or not, but every logistics faces damaged products at some point in their career. It is important to understand, that if the damage was an existing one or warehouse damage. This helps in determining the logistics performance and they can become cautious of the future mishandlings.

Determining the total turnover of the employee

For logistics, apart from building a good relationship with its customer base, it is also important to maintain a good relationship with its employees. The people working in these distribution chains often go through hectic schedules. Thus in order to avoid frequent quitting of the employees, a logistics must arrange for a good amount of incentive and other perquisites. This will help in enhancing a good working culture along with ensuring the growth of the organization.

The trailer tracking

The mode of transport is very important when it comes to proper logistics functioning. If your logistics use trailers for shipping, you need to make sure that they are in a proper working condition. If it breaks down in the middle of the road, then the issue might lead to a serious problem. You also need to ensure timely maintenance along with proper fuel refilling. A good functioning truck enhances the performance of logistics.

Adjusting to the weather changes

Being a tropical country, India witnesses a myriad of seasons throughout the year. Hence it is important for all the logistics out there to build a proper setup that works smoothly in every season. This is a very important factor and if you do not keep this in mind while setting up your logistics you might end up with a serious problem later.

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