Performance Measurement in Logistics Operations

1453 Words3 Pages

1. Introduction

Due to the expanding diapason of performances required by the current emulous environment, performance measurement and monitoring, as a subject, has been arousing growing interest in various scopes, especially in the field of logistics operations. Explicit performance measurements provide a common groundwork for decision-making in companies.

For performance measurement in Logistics operations, Key Performance Indicators are applied. “Key Performance Indicators, also known as KPI or Key Success Indicators (KSI), help an organization define and measure progress toward organizational goals (John Reh, 2012).” Among numerous different KPIs, there have always been confusions on which ones and how many to use. The application of different KPIs now proves to be contextual: the “Key” in the name KPIs indicates that only a few significant areas that are directly linked to the main goal of the business should be concerned. The aims for using key performance indicators in the industry are optimizing logistics processes as well as building sustainable and environment-friendly logistics systems (Kumar S, 2013).

Furthermore, the quantity of the existing KPIs is excessively large since all extant performances in businesses need to be measured. As stated before, distinct key performance indicators are used under individual environment.

The paper systematically introduces the concept of KPIs for logistics operations and provides 3 examples on performance measurements using specific KPIs in different environments. The purpose of the paper is to demonstrate how the use of KPIs can differ among individual cases and what lessons can be learned from them.

Performance Measurement in Humanitarian Logistics

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