Logistics KPIs & Metrics For E-commerce Business Growth [+Formula Cheatsheet] Logistics Metrics

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Welcome to a comprehensive guide on logistics KPIs and metrics for e-commerce business growth. Discover the key indicators to help you optimise your processes, enhance efficiency, and measure what truly matters. Gain actionable insights to fuel the growth of your online business. Let’s dive in and unlock the power of logistics metrics.

Understanding Logistics KPIs and Metrics

Logistics KPIs and metrics are specific measurements used to evaluate and assess the performance and effectiveness of logistics operations within a business. These indicators provide valuable insights into the efficiency, productivity, and overall success of the logistics processes involved in e-commerce supply chain management

By tracking and analysing inbound, outbound and reverse logistics KPIs and metrics, businesses can identify areas for improvement, optimise resource allocation, reduce costs, and enhance customer satisfaction. Examples of logistics KPIs and metrics include order fulfillment time, inventory turnover, transportation costs, on-time delivery rate, and warehouse capacity utilisation. These measurements enable businesses to make data-driven decisions, streamline operations, and achieve operational excellence in logistics functions.

Importance of Logistics KPIs and Metrics in an E-commerce Business

Logistics key performance indicators (KPIs) and metrics are vital to your e-commerce business’s success. By measuring and analysing specific indicators, you gain valuable insights into your logistics operations’ efficiency, effectiveness, and overall performance. Here’s why logistics KPIs and metrics are crucial for your e-commerce success:

Performance Evaluation

Assess how well your logistics processes function by monitoring indicators like order fulfillment time, on-time delivery rate, and inventory turnover. Identify areas for improvement and optimise your performance.

Operational Efficiency

Optimise your operations by using logistics KPIs and metrics. Pinpoint bottlenecks and inefficiencies in the supply chain using metrics like transportation costs, warehouse capacity utilisation, and order accuracy. Streamline processes, reduce costs, and boost productivity.

Customer Satisfaction

Prioritise a seamless customer experience. Logistics metrics such as delivery lead time, return rate, and customer satisfaction score provide insights into customer expectations. Exceed these expectations to foster customer loyalty and drive repeat purchases.

Data-Driven Decision Making

Leverage logistics KPIs and metrics to make informed decisions. Use tangible data on performance and efficiency to guide strategic planning, resource allocation, and process optimisation. Achieve better outcomes and fuel your business growth.

Benchmarking and Comparison

Compare your performance against industry standards and competitors. Benchmarking helps identify areas for improvement and sets growth goals. Stay ahead in the competitive e-commerce landscape.

Logistics Metrics

Benefits of Implementing Logistics KPIs and Metrics

With the ever-changing market pattern, constant change, and crisis, it is duly important to optimise the resources to focus on the critical aspects of a business. Continuous monitoring, assessment, and improvement are the extremities for success.

Benefits of logistics monitoring include:

Accurate Order Processing

With constant monitoring of the degrees of incidents, a company can identify error patterns and optimise operations for effective and profitable results.

Scheduled Delivery

By tracking on-time delivery, logistics performance is enhanced to produce and deliver the goods on time and avoid unwanted issues. This increases the reliability of the company.

Inventory Accuracy

Inaccurate inventory records can work against the spontaneity of a supply chain. Regular inventory management ensures reliable, efficient measures with minimum investment and a higher customer satisfaction rate.

Optimised Transportation Costs

Measuring the costs related to logistics operations helps calculate the average spent on each shipment and reflects accurate quotations to the forwarding partners and customers.

Comprehensive Logistics KPIs and Metrics for Each Stage of the Supply Chain

Logistics is a multifaceted network comprising several stages that collectively complete the order fulfillment cycle. Tracking and measuring key performance indicators (KPIs) and metrics at each supply chain step is essential to ensure optimal performance and continuous improvement. 

In this section, we will explore the metrics and KPIs associated with each stage of the logistics function, providing a comprehensive overview of the crucial indicators for effective logistics management.

Order Management Metrics

  1. Shipping Time: The total duration required for the company to ship an order within or before the specified date.

Formula: Actual shipping date – Order placement date.

Example: An order was placed on January 1st and shipped on January 5th. 

Shipping time = January 5th – January 1st = 4 days.

  1. Order Accuracy: A measure of inventory precision and correct order picking, directly impacting production, sales, time, and shipping.

Formula: (Number of accurate orders / Total number of orders) * 100 

Example: 800 accurate orders out of 1,000 total orders. 

Order accuracy rate = (800 / 1,000) * 100 = 80%.

  1. Perfect Order Rate: The percentage of orders shipped without any issues, such as damage, delays, or inaccuracies, aiming to achieve high customer satisfaction.

Formula: (Number of perfect orders / Total number of orders) * 100

Example: 900 perfect orders out of 1,000 total orders. 

Perfect order rate = (900 / 1,000) * 100 = 90%.

  1. On-time, In Full Shipments: The number of shipments delivered according to the ordered quantity and schedule, reflecting customer-centric performance.

Formula: (Number of on-time, in full shipments / Total number of shipments) * 100

Example: 700 on-time, in full shipments out of 800 total shipments. 

On-time, in full shipment rate = (700 / 800) * 100 = 87.5%.

  1. Number of Shipments: The total count of loads dispatched by the company within a specific period.

Formula: Count of shipments within a specific period.

Example: The company dispatched 150 shipments in the month of March.

Supply KPIs

  1. Order Cycle Time (Lead Time): The duration is taken for an order to be processed and reach the customer, helping identify potential problem areas.

Formula: Delivery date – Order placement date.

Example: An order was placed on February 1st and delivered on February 10th. 

Order cycle time = February 10th – February 1st = 9 days.

  1. Capacity Utilization: A metric for measuring the level of resource utilisation in terms of production output or service delivery, crucial for efficient resource tracking and maintenance management.

Formula: (Actual production rates / Maximum production rates) * 100 

Example: Actual production output is 8,000 units out of a maximum production output of 10,000 units. 

Capacity utilisation rate = (8,000 / 10,000) * 100 = 80%.

  1. Productivity: A metric assessing overall performance at the company, department, and employee levels, providing insights into the organisation’s productivity and its ability to meet commitments.

Formula: (Total output / Total input) * 100

Example: A department produced 500 units with 40 hours of labour. 

Productivity = (500 / 40) * 100 = 1250 units per hour of labour.

Inventory Metrics

  1. Customer Backorder Rate: The rate at which orders remain unfulfilled, directly impacting customer satisfaction and indicating potential supply chain disruptions.

Formula: (Number of backordered items / Total number of orders) * 100

Example: 50 backordered items out of 200 total orders. 

Customer backorder rate = (50 / 200) * 100 = 25%.

  1. Inventory Accuracy: An essential metric that ensures real-time monitoring of inventory records, allowing businesses to gauge stock availability and meet market demands effectively.

Formula: (Number of accurate inventory records / Total number of inventory records) * 100

Example: 800 accurate inventory records out of 1,000 total inventory records. 

Inventory accuracy rate = (800 / 1,000) * 100 = 80%.

  1. Stock Rotation (Inventory Turnover): A metric measuring the frequency at which a company sells its entire stock of a particular product, critical for competitiveness and retail success.

Formula: Cost of Goods Sold / Average Inventory Value

Example: The cost of goods sold is 1,000,000 Pesos, and the average inventory value is 200,000 Pesos. 

Stock rotation = 1,000,000 / 200,000 = 5 times.

  1. Packing Material Usage: The quantity of e-commerce packaging material used during the sorting phase, encouraging sustainable practices to reduce environmental impact and operating costs.

Formula: Total quantity of packing material used.

Example: The warehouse used 500 boxes and 1,000 meters of tape for packing during a specific period.

  1. Pick and Pack Cycle Time: The time taken by the warehouse function to pick a product and pack it for shipping, highlighting efficiency and speed in order fulfillment.

Formula: Time taken to pick and pack an order.

Example: It takes an average of 3 minutes to pick and pack an order in the warehouse.

  1. Inventory to Sales Ratio: A comprehensive metric that compares the amount of inventory stock to the number of sales fulfilled, offering insights into inventory expenses relative to overall sales performance.

Formula: Inventory Value / Sales Value

Example: Average inventory value is 500,000 Pesos, and average monthly sales are 100,000 Pesos. 

Inventory to sales ratio = 500,000 / 100,000 = 5.

Distribution Metrics

  1. Distribution Vehicle Utilisation Rate: A metric measuring the performance of loading distribution trailers, reflecting load planning efficiency.

Formula: (Actual load weight / Maximum load weight) * 100

Example: Actual load weight is 8,000 kg out of a maximum load weight of 10,000 kg. 

Vehicle utilisation rate = (8,000 / 10,000) * 100 = 80%.

  1. Average Stand Time (Dwell Time): Measures the waiting time of carrier vehicles during pickup and delivery, providing valuable insights into overall operational efficiency.

Formula: Total stand time of carrier vehicles / Number of carrier vehicles.

Example: The total stand time of carrier vehicles is 500 minutes, with 10 carrier vehicles. 

Average stand time = 500 / 10 = 50 minutes.

Warehouse Metrics

Warehouse metrics are used to evaluate the performance and efficiency of warehouse operations. They provide insights into various aspects such as productivity, inventory management, resource utilisation, and customer service. Here is an overview of some key warehouse metrics, along with a formula that combines multiple metrics into a single measure:

  1. Warehouse Efficiency Index (WEI): The Warehouse Efficiency Index is a composite metric that combines several warehouse performance indicators to provide an overall measure of warehouse efficiency. It takes into account factors such as order accuracy, on-time shipments, inventory accuracy, and labour efficiency. The formula for calculating the Warehouse Efficiency Index is as follows:

Formula: WEI = (Order Accuracy Rate * On-time, In Full Shipments Rate * Inventory Accuracy Rate * Labor Efficiency Rate)^(1/4)

Example:

Let’s consider a warehouse that has the following metrics:

Order Accuracy Rate: 95%

On-time, In Full Shipments Rate: 90%

Inventory Accuracy Rate: 98%

Labour Efficiency Rate: 85%

Using the formula for the Warehouse Efficiency Index, we can calculate the overall efficiency as follows:

WEI = (0.95 * 0.90 * 0.98 * 0.85)^(1/4) ≈ 0.926

The resulting Warehouse Efficiency Index value is approximately 0.926. This indicates that the warehouse is operating at 92.6% efficiency, considering the combined performance of order accuracy, on-time shipments, inventory accuracy, and labour efficiency. The higher the WEI value, the more efficient the warehouse operations.

By monitoring the Warehouse Efficiency Index over time, warehouse managers can track the overall performance of the warehouse and identify areas that need improvement. It serves as a valuable benchmarking tool and helps set targets for enhancing warehouse productivity and customer satisfaction.

Transport Management KPIs

  1. Delivery Time: The total time taken for an order to be delivered, impacting customer satisfaction, reliability, and loyalty.

Formula: Actual delivery date – Scheduled delivery date.

Example: An order was scheduled to be delivered on March 1st but was delivered on March 5th. 

Delivery time = March 5th – March 1st = 4 days.

  1. Average Waiting Days: The number of days between the delivery due date and the actual date of customer receipt, reflecting overall delivery performance and customer reliability.

Formula: Total waiting days / Total number of orders

Example: The total waiting days for all orders are 100 days, and there were 50 orders. 

Average waiting days = 100 / 50 = 2 days.

  1. Truck Turnaround Rate: Measures the efficiency of loading and unloading materials and orders, indicating how well a business handles the logistics of delivery vehicles.

Formula: Number of truck turnaround cycles / Total number of trucks.

Example: There were 20 truck turnaround cycles with 10 trucks. 

Truck turnaround rate = 20 / 10 = 2 cycles per truck.

  1. Accurate Freight Bill: The percentage of error-free freight bills compared to the total number of freight bills, ensuring accuracy in the transport process.

Formula: (Number of accurate freight bills / Total number of freight bills) * 100

Example: 80 accurate freight bills out of 100 total freight bills. 

Accurate freight bill rate = (80 / 100) * 100 = 80%.

  1. Transportation Charges: Metrics related to transportation costs, encompassing order processing, administration, inventory, warehouse, and transportation expenses, providing a comprehensive view of total transportation expenditure.

For instance, if the total transportation costs for an order from start to completion amount to 10,000 Pesos, the transportation charges for that order are 10,000 Pesos.

Cross-Functional Logistics KPIs and Metrics

Cross-functional logistics KPIs and metrics are essential for evaluating logistics processes’ overall performance and efficiency involving multiple organisational functions. Here are some examples of cross-functional logistics KPIs and metrics:

Financial Logistics Metrics

  1. Operating Ratio: Measures the ratio of total operating expenses to total revenue, with a lower ratio indicating higher profits.

Formula: (Total operating expenses / Total revenue) * 100 

For example, if the total operating expenses are 500,000 Pesos and the total revenue is 1,000,000 Pesos, the operating ratio is 50%.

  1. Net Profit Ratio: Measures the return on investment by calculating after-tax profit divided by total asset value.

Formula: (After-tax profit / Total asset value) * 100 

For instance, if the after-tax profit is 200,000 Pesos and the total asset value is 1,000,000 Pesos, the net profit ratio is 20%.

  1. Financial Leverage: Calculates the ratio of total debts to total assets, providing insights into the company’s financial risk and leverage.

Formula: (Total debts / Total assets) * 100

For example, if the total debts are 300,000 Pesos and the total assets are 1,000,000 Pesos, the financial leverage is 30%.

Supply and Inventory Logistics Metrics

  1. Equipment Usage Rate: Measures the availability and performance of required equipment in the facility, reflecting production spontaneity.

Formula: (Total productive time of equipment / Total available time) * 100

Example: Equipment was productive for 400 hours out of 500 available hours. 

Equipment usage rate = (400 / 500) * 100 = 80%.

  1. Capacity Utilization Rate: Measures a company’s utilisation of available resources to manage production rates, reduce operating costs, and maintain a sustainable flow of goods in the supply chain.

Formula: (Actual production output / Maximum production output) * 100

Example: Actual production output is 8,000 units out of a maximum production output of 10,000 units. 

Capacity utilization rate = (8,000 / 10,000) * 100 = 80%

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Labor Logistics Metrics

  1. Sick Leave: Tracks employees’ health and wellness by measuring the frequency and duration of sick leave, minimising labour disruptions.

Formula: (Total sick leave hours / Total working hours) * 100

Example: Employees took 80 hours of sick leave out of 2,000 total working hours. 

Sick leave rate = (80 / 2,000) * 100 = 4%

  1. Safety Measures: Monitors the number of reported injuries, accidents, and fatalities, ensuring workplace safety and adherence to safety protocols.

Formula: (Number of reported incidents / Total number of employees) * 100

Example: 5 reported injuries out of a total of 100 employees. 

Safety incident rate = (5 / 100) * 100 = 5%

  1. Time Taken for New Recruitments: Measures the effectiveness and efficiency of recruitment processes by calculating the time between job acceptance and job requisition approval.

Formula: (Total time taken for recruitments / Total number of recruitments)

Example: The total time taken for 10 recruitments was 30 days. 

Time taken for new recruitments = 30 / 10 = 3 days per recruitment

Transportation Logistics Metrics

  1. Driver Performance: Evaluates the quality and performance of trucks and drivers by considering multiple KPIs such as speed, idle time, and braking occurrences, ensuring safe and efficient transportation operations.

Formula: (Total good driving behaviour events / Total driving events) * 100.

Example: 200 good driving behaviour events out of 500 total driving events. 

Driver performance rate = (200 / 500) * 100 = 40%.

  1. Fuel Efficiency: Measures the performance of vehicles on the road, identifying opportunities to reduce operating expenses by improving fuel efficiency.

Formula: (Total distance travelled / Total fuel consumed)

Example: Trucks travelled 1,000 miles and consumed 100 gallons of fuel

Fuel efficiency = 1,000 / 100 = 10 miles per gallon

Reverse Logistics Metrics

  1. Cycle Time: Measures the efficiency of reverse logistics processes, representing the time required to process returns and disposition products.

Formula: (Total time spent on processing returns / Total number of returns)

Example: Total time spent on processing returns is 1,000 hours for 500 returns. 

Cycle time = 1,000 / 500 = 2 hours per return.

  1. Amount of Reclaimed and Resold Products: Tracks the percentage of returned products that can be reclaimed, resold, and recaptured in value.

Formula: (Total reclaimed and resold products / Total number of returned products) * 100

Example: 200 products were reclaimed and resold out of 500 returned products. 

Reclaimed and resold percentage = (200 / 500) * 100 = 40%

  1. Recycling: Measures the percentage of recycled products in reverse logistics, promoting sustainability and environmental responsibility.

Formula: (Total recycled products / Total number of returned products) * 100

Example: 300 products were recycled out of 500 returned products. 

Recycling percentage = (300 / 500) * 100 = 60%

  1. Wastage: Quantifies the number of products sent to landfills or disposed of during reverse logistics operations.

Formula: (Total products sent to landfill or disposal / Total number of returned products) * 100

Example: 50 products were sent to landfill or disposal out of 500 returned products. 

Wastage percentage = (50 / 500) * 100 = 10%.

  1. Percentage of Recovered Costs: Calculates the amount recovered after processing returns, providing insights into the financial impact of returns on the business.

Formula: (Total recovered costs / Total cost of returns) * 100

Example: 10,000 Pesos were recovered from returns with a total cost of returns of 50,000 Pesos. 

Percentage of recovered costs = (10,000 / 50,000) * 100 = 20%

  1. Cost per Item Handling: Determines the total monthly cost relative to the number of processed products, enabling cost analysis and optimisation in reverse logistics.

Formula: (Total cost of reverse logistics / Total number of processed products).

Example: The total cost of reverse logistics is 100,000 Pesos for 5,000 processed products. 

Cost per item handling = 100,000 / 5,000 = 20 Pesos per item.

  1. Distance Traveled: Tracks the average distance travelled per item in reverse logistics, helping optimise transportation routes and reduce costs.

Formula: (Total distance travelled in reverse logistics / Total number of processed products)

Example: The total distance travelled in reverse logistics is 10,000 miles for 2,000 processed products. 

Distance travelled per item = 10,000 / 2,000 = 5 miles per item.

  1. Fuel Efficiency: Measures the total energy used in reverse logistics operations, allowing businesses to implement sustainable practices.

Formula: (Total energy used in reverse logistics / Total number of processed products)

Example: The total energy used in reverse logistics is 5,000 kWh for 1,000 processed products. 

Fuel efficiency = 5,000 / 1,000 = 5 kWh per item.

By focusing on these comprehensive logistics KPIs and metrics across each stage of the supply chain, businesses can gain valuable insights, identify areas for improvement, and make data-driven decisions to enhance overall logistics performance and customer satisfaction.

How to Implement Logistics KPIs and Metrics in Your E-commerce Business

Logistics Metrics

Implementing logistics key performance indicators (KPIs) and metrics in your e-commerce business is crucial for success. Follow these steps to implement logistics KPIs and metrics effectively:

  1. Define Your Objectives: Clearly outline your logistics goals, such as improving order accuracy, reducing delivery lead time, optimising inventory management, and minimising transportation costs.
  1. Select Relevant KPIs: Choose KPIs that align with your objectives and provide meaningful insights into your logistics operations. Examples include order accuracy rate, average delivery time, inventory accuracy, and transportation cost per order.
  1. Establish Baselines: Determine the current performance levels for each selected KPI to establish baselines for improvement. This allows you to track progress over time.
  1. Collect and Analyse Data: Implement systems and processes to collect relevant data for your selected KPIs. Regularly analyse this data to identify trends, patterns, and areas for improvement.
  1. Set Targets and Actionable Plans: Set realistic targets for each KPI based on industry benchmarks and your business objectives. Develop actionable plans to achieve these targets, addressing any identified areas for improvement.
  1. Communicate and Engage: Ensure all stakeholders, including your logistics team, know the selected KPIs, targets, and plans. Encourage their participation and provide necessary training and support.
  1. Monitor Progress: Continuously monitor the performance of your logistics KPIs and metrics. Regularly review the data, track progress, and make adjustments to your plans as needed.
  1. Continuous Improvement: Use the insights gained from your logistics KPIs and metrics to continuously improve your operations. Implement changes, test new strategies, and measure their impact on your KPIs.

By following these steps, you can effectively implement logistics KPIs and metrics in your e-commerce business, drive performance improvements, and achieve your logistics goals.

Do’s and Don’ts for Developing and Implementing Logistics KPIs

Developing and implementing Key Performance Indicators (KPIs) is a critical aspect of logistics management for e-commerce businesses. KPIs provide valuable insights into the performance and effectiveness of logistics operations, helping businesses identify areas for improvement and measure their progress towards goals. However, it’s important to approach the development and implementation of logistics KPIs strategically to ensure their effectiveness and relevance. Here are some do’s and don’ts to consider:

Do’s for Developing and Implementing Logistics KPIs

  1. Align KPIs with Business Objectives: Ensure your logistics KPIs align with your overall business objectives. Clearly define the desired outcomes and determine which metrics will best indicate progress towards those goals. This alignment will help ensure that your KPIs are meaningful and contribute directly to the success of your e-commerce business.
  1. Select a Mix of Leading and Lagging Indicators: Include a combination of leading and lagging indicators in your KPI framework. Lagging indicators measure the outcomes and results while leading indicators provide insights into the activities and processes that drive those outcomes. This balanced approach will help you monitor your logistics operations’ immediate and long-term performance.
  1. Keep KPIs Relevant and Actionable: Choose KPIs relevant to your logistics processes and operations. Avoid measuring too many metrics that may not directly impact decision-making or performance improvement. Focus on actionable KPIs and allow you to take specific steps to address any issues or inefficiencies identified.
  1. Establish Clear Baselines and Targets: Set clear baselines and targets for each KPI to provide a benchmark for performance evaluation. Baselines help you understand the starting point, while targets define the desired level of performance. These benchmarks enable you to track progress and take corrective actions when necessary.
  1. Ensure Data Accuracy and Timeliness: Implement systems and processes to ensure the accuracy and timeliness of data used for KPI measurement. Inaccurate or outdated data can lead to misleading insights and hinder effective decision-making. Regularly monitor data quality and implement measures to maintain data integrity throughout your logistics operations.

Don’ts for Developing and Implementing Logistics KPIs

  1. Overcomplicate KPI Framework: Avoid developing a complex KPI framework with numerous difficult-to-understand or track metrics. A complicated framework can confuse employees and dilute the focus on the most critical indicators. Keep your KPI framework concise and focused on the key drivers of logistics performance.
  1. Neglect Employee Engagement and Buy-in: Involve your logistics team in developing and implementing KPIs. Neglecting their input and buy-in can lead to resistance and hinder successful implementation. Engage employees to understand their perspectives, ensure their alignment with the KPIs, and provide the necessary resources and support to achieve the desired outcomes.
  1. Set Unrealistic or Arbitrary Targets: Avoid setting unrealistic or arbitrary targets for your logistics KPIs. Targets should be challenging yet attainable based on historical data, industry benchmarks, and operational capabilities. Unrealistic targets can demotivate employees and create a culture of underperformance or unrealistic expectations.
  1. Overlook Continuous Improvement: Developing and implementing logistics KPIs should be continuous. Regularly review and refine your KPI framework based on changing business needs, industry trends, and stakeholder feedback. Embrace a culture of continuous improvement, where KPIs are regularly assessed and adjusted to drive ongoing enhancements in your logistics operations.
  1. Ignore the Context and Dynamics of E-commerce: Consider the unique characteristics and dynamics of the e-commerce industry when developing logistics KPIs. E-commerce logistics often involve fast-paced order fulfillment, last-mile delivery challenges, and evolving customer expectations. Ensure that your KPIs capture these nuances and provide insights into areas specific to e-commerce logistics, such as order accuracy, on-time delivery, and customer satisfaction.

By following these do’s and don’ts, you can develop and implement logistics KPIs that provide meaningful insights, align with your business objectives, and drive improvements in your e-commerce logistics operations. Regularly monitor and review these KPIs to ensure they remain relevant and effective in supporting your growth and success.

Experience Logistics Excellence with Locad: Unlocking Visibility and Automation

When it comes to achieving logistics excellence for your e-commerce business, connecting with Locad can be a game-changer. 

Locad offers advanced technology solutions that optimise your supply chain, streamline operations, and enhance customer satisfaction. 

One of the key advantages of partnering with Locad is the ability to eliminate the manual tracking of logistics KPIs and gain comprehensive visibility into your operations. Here’s how Locad empowers you with automated KPI tracking and enhanced visibility:

Logistics KPIs & Metrics For E-commerce Business Growth [+Formula Cheatsheet] Logistics Metrics
  1. Automated KPI Tracking: With Locad, you no longer have to run behind manually tracking logistics KPIs. Their system automatically captures and consolidates critical performance metrics, giving you real-time insights into your supply chain operations. This logistics automation saves you valuable time and effort, allowing you to focus on strategic decision-making and process improvement.
  1. Real-Time Visibility: Locad provides real-time visibility into every aspect of your logistics operations. From inventory levels and order fulfillment to last-mile delivery and returns management, you can access up-to-date information through a centralised dashboard. This real-time visibility enables proactive decision-making, allowing you to address potential bottlenecks, optimise resources, and improve overall efficiency.
  1. Customisable Reporting: Locad offers customisable reporting features, allowing you to generate tailored reports that align with your specific business requirements. Whether you need insights on order accuracy, delivery lead times, or inventory turnover, Locad’s reporting capabilities enable you to access the right information at the right time. These reports comprehensively overview your logistics performance and support data-driven decision-making.
  1. Exception Management: Locad’s system proactively identifies exceptions and alerts you to any deviations from predefined KPI thresholds. Whether it’s a sudden spike in order returns or a delay in delivery times, Locad notifies you of potential issues that require immediate attention. By addressing exceptions promptly, you can maintain service levels, enhance customer satisfaction, and mitigate risks effectively.
  1. Predictive Analytics: Locad leverages predictive analytics to forecast demand patterns, anticipate stockouts, and optimise inventory levels. Locad helps you make informed decisions to avoid overstocking or understocking situations by analysing historical data and market trends. This proactive approach ensures that you meet customer demands while minimising carrying costs and maximising profitability.

With Locad, you can eliminate manual tracking, reduce the risk of errors, and stay ahead of your logistics operations effortlessly. Not only that, Locad is the logistics engine enabling e-commerce brands with a cloud supply chain to grow their omnichannel business and automatically store, pack, ship, and track orders across Asia-Pacific. 

Experience logistics excellence with Locad and unlock the power of automation, visibility, and data-driven decision-making for your e-commerce business.

Experience fulfillment by Locad today!

FAQs

What are logistics metrics?

The quantitative measurements to track certain processes within the logistics system are called logistics metrics.

What does KPI mean in logistics?

Key Performance Indicator is a quantitative tool used to measure performance by businesses. Logistics KPIs are associated with a variety of metrics including purchase, warehouse, transportation, delivery, customer service, and so on. 

What are the essential Key Performance Indicators in Logistics?

Essential KPIs in Logistics include:

  • Order Accuracy
  • On-Time In Full
  • Lead Time
  • Warehouse Costs
  • Inventory Turnover
  • Capacity Utilisation
  • Truck Turning
  • Productivity
  • Transportation Charges
  • Shipments

Why do companies use metrics?

Effective metrics help a business achieve goals and identify the areas of concentration for the overall improvement in performance.

How can a company evaluate logistics performance?

A company can evaluate its logistics performance in the following ways:

  • Identifying each process and link to supply chain
  • Determining a goal of each indicator
  • Determining variables involved in the operation
  • Data collection
  • Quantify and measure each variable
  • Review data against global indicators
  • Analyze overall performance

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