Key Performance Indicators (KPI) and quality
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Key Performance Indicators (KPI) and quality
Posted by
cmorard
at
February 27. 2008
Dear Logisticians,
I am very interested in finding out information, links ect. on KPI and quality for logistics (emergencies response mostly)
I know ICRC have something but I am not quite sure if it has been finalized or not.
Thanks for your comprehension and assistance.
all the best and sucess for your ongoing activities
Hi Christophe,
We had a look at this last year, as part of our tracking system roll-out. Pasted part of interest;
Key Performance Indicators Survey
In order to identify KPIs important for monitoring supply and logistics performance, a survey was administered to 31 managers; the 45% who responded to the survey primarily were Logistics Officers, although several Supply Directors and a warehouse manager responded, as well.
In the first survey question, respondents were asked to rank in order of importance Key Performance Indicators that they currently monitor. Most commonly described KPIs in some way measured either service level or inventory quality and accuracy. In no particular order, responses included the following KPIs:
|
Inventory Quality and Accuracy |
Service Level |
Financials |
|
% Inventory Accuracy |
Time from PGM Authorization to PO Issuance |
Value of items in stock |
|
% Inventory Losses |
Time Required for Customs Release |
|
|
% Losses Due to Expiry |
% of Orders Arriving within the TAD |
|
|
% Losses Due to Damage |
Supplier % On-Time Delivery |
|
|
Inventory Turnover / Age of Items |
Freight Forwarder % On-Time Delivery |
|
|
|
% of Warehouse Stock-Outs |
|
|
|
Stock Level |
|
|
|
Service Level for Emergency Supplies |
|
In the second survey question, respondents were asked to rank in order of importance Key Performance Indicators that they would like to monitor. In addition to many of the same responses as in question 1, the following new suggestions were offered:
|
Financials |
Service Level |
|
Cost of Customs Clearance, Warehousing, and Transport as a % of Supply Value |
Actual versus planned delivery date to the final consignee |
|
|
Cut % Arriving with TAD by Locally Procured and Directly Delivered Supplies |
|
|
Supplier Lead Time |
Additionally, although not a KPI, multiple respondents requested that a report be created to flag items in danger of expiry. Respondents also expressed interest in monitoring positive and negative feedback provided by the final consignee.
The final survey question asked respondents to rank the importance of suggested metrics. Listed on the following page are respondents’ preferences, in order of descending importance.
|
KPI |
Definition |
% Thought Important |
% Thought Unimportant |
Total Points |
|
Supplier Reliability (in %) |
POs delivered on-time and completely to warehouse as a % of total POs committed to deliver |
100% |
0% |
34 |
|
Service Level (in %) |
% of orders delivered to the final consignee on or before the agreed upon date |
100% |
0% |
32 |
|
Storage Time (in weeks) |
Time between reception date at warehouse and dispatch date to final consignee |
100% |
0% |
31 |
|
Cycle Time (in weeks) |
Total amount of time between a PGM being raised and delivery to the final consignee |
100% |
0% |
30 |
|
Inventory Accuracy (in %) |
Value of inventory adjustments as a % of total stock value |
93% |
7% |
28 |
|
Transportation Time (in weeks) |
Time between release order date and delivery to final consignee |
93% |
7% |
24 |
|
Inventory Level (in $) |
Value of inventory in warehouse; appropriate level facilitates achievement of target service level |
93% |
7% |
24 |
|
Supplier Lead Time (in weeks) |
Amount of time between PO issue date and delivery of supplies to warehouse |
86% |
14% |
23 |
|
Inventory Efficiency (in %) |
Monetary losses due to expiries or handling mishaps as a % of total stock value |
86% |
14% |
23 |
|
Inventory Turnover |
Ratio indicating frequency with which inventory is sold and replaced; calculated by dividing cost of goods dispatched by average inventory value |
86% |
14% |
19 |
Recommended Key Performance Indicators
To recommend performance indicators to include in UniTrack version 2.0, I considered respondents’ suggestions, as well as applicable metrics that are widely used to promote best practices in commercial supply chain management. In this analysis, I am limiting my recommendations to only those KPIs that can be calculated using only UniTrack data; country offices likely will find it useful to combine additional data sources with UniTrack data to monitor other important metrics. Additionally, in the spirit of keeping UniTrack’s interface simple and effective, I limited the number of suggested indicators to ten. Suggested indicators to incorporate into UniTrack version 2.0 are listed on the following page:
Which I would post if this thing let me post attachments!!!
Re: Key Performance Indicators (KPI) and quality
Posted by
cmorard
at
March 05. 2008
Previously Paul Molinaro wrote:
Hi Paul,
thanks a lot for your comments. i surely appreciate and some how, the HLA is about to become a great tools.
good point! perhaps you should raise to JC Crespel. being able to attach doc rather than you re-write it!!!!
thanks a lot.
ps. you can send it to cmorard@savechildren.org
aksantisana rafiki
Hi Christophe,
We had a look at this last year, as part of our tracking system roll-out. Pasted part of interest;
Key Performance Indicators Survey
In order to identify KPIs important for monitoring supply and logistics performance, a survey was administered to 31 managers; the 45% who responded to the survey primarily were Logistics Officers, although several Supply Directors and a warehouse manager responded, as well.
etc...
