In every company, the logistics environment that comprises purchasing, warehousing, transporting, delivery, and the resources such as equipment, raw materials, product, and people play an essential role in ensuring the smooth running of operations. Key performance indicators (KPIs) in logistics help companies relate their performance with those of competitors and deal with errors made affirmatively in the course of business operations (NetSuite.com, 2021). The existence of driving forces such as time, cost, and informed decisions results in the efficient use of KPIs in the logistics environment, thus ensuring optimum competence.
A logistics manager who is insightful about time helps the company become competitive. The manager should be alert to ensure that product shipping time is observed to ensure that the customers are not met by delays (NetSuite.com, 2021). Similarly, accurate on-time delivery of goods gives assurance to the customers hence winning the customers in working with your company another time. For example, the logistics manager in a company should ensure that a customer’s shipment leaves the warehouse on time and liaise with the delivery person to oversee timely arrival as agreed with the customer. Eventually, the customer will not incur extra expenses due to delays avoided by being punctual.
The success of any business is solely determined by its decisions. The logistics manager in a company needs to scrutinize the KPIs that are worth to the company and strategically align to the values and mission of the business. The stakeholders in a company ought to pay close attention to the key performance indicators to ensure that decisions made are impactful. The logistic manager analyzing the KPIs and carefully examining different partners to come up with the best who will help deliver quality service to the customers is a perfect example of a good decision.
Reference
NetSuite.com. (2021). Key KPIs for logistics. Oracle NetSuite. Web.