Getting you closer to the information you've only dreamed of.

Scroll to content

Which metrics should supply chain managers track?

analytics reportsYou can track shipments and specific pallets, you can track fuel prices and carrier rates, but are you tracking the right logistics KPIs? As you look over your shipping strategy and goals, make sure that you are taking the time to understand which key performance indicators are right for your business.

Here are many of the logistics KPIs that supply chain managers find useful for their logistics performance.

Logistics KPI: item fill rate

Item fill rate is the ratio in which item were received compared to the order quantity.

Why you should track it

Item fill rates are important to track because they help you determine which products are being ordered as well as the quantities ordered. They can help you determine how many of each item you need to keep on hand as well as how much space should be allocated in warehouses to each item.

Logistics KPI: perfect orders

Perfect orders are a combination of multiple shipping KPIs:

  • On-time shipments
  • Correct shipping addresses
  • Damage-free orders
  • Correct items shipped

Why you should track it

Together, these components make for a complete, “perfect” order. While it is important to track each of these KPIs individually, perfect orders should also be tracked at a higher level. If your percentage of perfect orders drops, you can dig deeper into each component to identify where the problem is occurring.

Logistics KPI: operational Costs

Operational costs are the end all costs of a company’s supply chain. It is another high level, all-encompassing KPI that consists of:

  • Manufacturing and procurement costs
  • Warehousing and distribution costs
  • Shipping and carrier costs

Why you should track it

Supply chain costs should be watched closely in order to determine product prices and shipping rates. In an age where customers demand affordable shipping rates, supply chain managers need to carefully track costs to see where they can make cuts in order to make shipping more affordable for consumers.

Logistics KPI: time metrics

There are several time-based KPIs supply chain managers can track:

  • Transit times
  • Pick and queue times
  • Total order times

Why you should track it

The total time that it takes for customers to receive products from the moment they are ordered in integral in an e-commerce marketplace that advertises fast shipping. Supply chain managers should monitor everything from lane performance to pick and pack times in order to eliminate redundancies and optimize performance. This allows customers to receive their items as quickly as possible.

Keep on tracking

Nothing will help optimize your business more than tracking KPIs and other performance metrics. That’s why you need a program to help you keep track of the data that is important to your organization. To learn more about how logistics software like MyGameChanger® can help you analyze your shipping data, contact our team today.