Kpi for a transport forwarding company. Calculating KPIs in Excel examples and formulas

KPIs of the logistics department of any industrial enterprise directly depend on the overall goals of the entire company and its main objectives. The main list of tasks of specialists directly involved in logistics issues at an enterprise may include: constant support of the activities of the enterprise or organization, control over the supply of components and materials, maintaining warehouse stocks at the established, average level and their timely replenishment.

KPI of the logistics department may contain the following indicators:

• Timely provision of raw materials, production components or goods to selling departments in order to avoid downtime that may be caused by unprofessional work of the department;
• Optimization of costs associated with delivery and transportation of goods, etc.

In general, the KPI structure makes it possible to assess the effectiveness of previously formed plans, as well as the needs of the enterprise and organization for materials and components. In addition, kpi logistics is guaranteed to reduce the risk of excess (excess) inventory in the warehouse.

A clear introduction into the work of the KPI of the purchasing department allows the company to control the expenditure of its financial resources, as well as the quality of the purchased products. Warehouse KPI establishes the responsibility of each specialist to ensure that the work at the enterprise is clear and structured, so that the stocks stored in the warehouse have time to be sold before their expiration date.

Key performance indicators must be calculated in digital equivalent. For example, the indicator cannot be the question: did new products arrive at the warehouse in a given month? The digital value must be an indicator of work efficiency. Only you can compare it with the value of the previous year and month, and also analyze the reasons for the decrease or increase in labor productivity. Read the article "

KPI is an abbreviation for Key Performance Indicator. Translated as “key performance indicator”, in the practice of Russian companies the combination “key performance indicator” is often used. BSC is an abbreviation for the English Balanced Scorecard, translated as “balanced score”.

Management by goals (or management by deviations from goals) in the practice of Russian companies is becoming a standard tool for implementing strategic plans through the organization of effective operational work, guaranteed to lead to the achievement of planned indicators. In other words, each business system, business process, business function is set with target benchmarks - standards, deviation from which is unacceptable. If such a deviation occurs, then a control action must be generated in the system, leading business processes to established operating standards.

Management standards or goals in modern business conditions are established using the methodology for creating a balanced scorecard (BSC), and the values ​​of actual deviations from the balanced scorecards are objective indicators of the state of the system (KPI).

Strategic and regulatory KPIs

KPIs can be strategic or regulatory in nature. Strategic KPIs should include those indicators, the achievement of which allows the company to obtain important strategic advantages. At the warehouse system level, strategic KPIs include the following:

• the number of warehouses in the system (in the conditions of development of the warehouse network);
• storage capacity (in commodity and/or monetary units);
• warehouse throughput (in commodity and/or monetary units);
• cost of storage and warehouse processing;
• reliability of operation.

In practice, strategic KPIs are most often of a boundary nature, that is, they are limiting, target indicators to which the warehouse system must steadily strive in order to provide strategic advantages that are significant for the company.

Regulatory KPIs are key performance indicators that must be maintained in an unchanged state in the system, playing the role of a control standard. In terms of warehouse activities, the regulatory KPIs will be the following indicators:

• standards for performing technological operations (for example, time standards for loading/unloading a vehicle);
• indicators of the quality of operations performed (for example, commissioning);
• standard for loss of goods/cargo due to the fault of the warehouse (theft, careless handling, personnel errors resulting in material damage, etc.)

A strategic KPI, upon its achievement, can be transferred to the category of static, normative, and a normative KPI can become strategic, for example, if it is necessary to increase the throughput of a warehouse complex (operation standards can be tightened in relation to time intervals for completion or personnel involved).

A system map reflecting approaches to generating KPIs for a warehouse system is shown below.

Formation of KPIs for the warehouse system:

KPIs by warehouse type

a) for own needs

1. production warehouse

2. distribution center

b) provision of services

1. net profit plan

2. plan for operating profit (EBIT)

3. plan for pure CF

KPI significance

a) strategic KPI

b) regulatory KPI

KPI calculation method

a) statistical for data production

b) over the entire data set

KPI by method of technological processing of streams

1. using a barcode

2. without using a barcode

b) mechanized

c) automated

Comprehensive KPI

a) operational

b) resource intensity

1. shipment

2. acceptance

3. storage

4. execution control

Simple KPI

a) effectiveness

1. shipment plan

2. acceptance plan

3. storage volume plan

4. quality standard (% of deviations reaching the consumer)

b) efficiency

1. processing cycle time

2. cost of processing a unit of production

3. cost of achieving development goals

4. resource availability

c) economical

1. cost plan

2. investment plan

The choice of a KPI system must correspond to the actual state of the technological architecture of the warehouse complex and at the same time set the vector of its development or qualitative change. Table 1 summarizes the main KPIs recommended in the practice of our company for use in mechanized and automated warehouses.

Table 1

Key performance indicators of the warehouse system

№	Index
		Mechanized	Automated
1	throughput
1.1	Throughput for the period (the maximum value of goods flow that enters the system input and is issued in accordance with the shipping standard at the warehouse exit)	+	+
1.2	Reception capacity for a period (the maximum value of goods flow that a warehouse can accept for a period)	+	+
1.3	Shipping capacity for the period (the maximum value of goods flow that the warehouse can ship if goods are available for the period)	+	+
1.4	Complex throughput for the period (the total value of the throughput of acceptance and shipment for the period)	+	+
1.5	Throughput by type of goods and method of acceptance/shipment for the period	+	+
1.6	Throughput coefficient for the period (the ratio of the maximum goods flow at the output to the maximum goods flow at the input of the warehouse system for the period)	+	+
1.7	Turnover period (the time period required to ship goods from a fully filled warehouse in the absence of goods flow at the system input)	+	+
1.8	Filling period (the time period required to completely fill the warehouse in the absence of shipment)	+
2	STORAGE
2.1	Storage capacity by product/technological groups	+	+
2.2	Storage capacity by technological zones of the warehouse	+	+
3	USE OF LOGISTICS CAPACITY
3.1	Space utilization ratio (the ratio of the warehouse area occupied by technological equipment and/or allocated for storing goods/commodity operations to the total warehouse area)	+	+
3.2	Volume utilization ratio (the ratio of the warehouse volume occupied by technological equipment and/or allocated for storing goods/commodity operations to the total warehouse volume)	+	+
3.3	Specific warehouse throughput for the period per employee (comprehensive labor productivity) (can be calculated in terms of goods or in monetary terms)		+
3.4	Specific warehouse throughput for the period per unit of area or volume of the warehouse (can be calculated in terms of goods or in monetary terms)	+	+
3.5	The coefficient of use of technology/mechanization/automation (the ratio of the flow of goods processed mechanized/automated to the total flow of goods)	+	+
4	OPERATIONAL PERFORMANCE
4.1	Speed ​​of vehicle servicing on incoming goods flow (by types and types of vehicles, taking into account the type of goods)	+	+
4.2	Speed ​​of vehicle servicing on the shipped goods flow (by types and types of vehicles, taking into account the type of product/order)	+	+
4.3	System throughput in standard/average positions/orders	+	+
4.4	Labor productivity by warehouse operational areas	+	+
4.5	Goods acceptance service ratio for the period (the number of unaccepted/unserviced transport/commodity units to the goods flow planned for acceptance)	+	+
4.6	Product shipment service ratio for the period (number of unaccepted/unserviced transport/commodity units to the goods flow planned for shipment)	+	+
4.7	Customer service ratio for the period (the amount of unshipped goods of a particular client to the goods ordered by the client) (calculated in monetary, commodity, positional units)	+	+
4.8	The coefficient of comprehensive customer service for the period (the ratio of the quantity of unshipped goods to the ordered goods) (calculated in monetary, commodity, positional units)	+	+
4.9	Shipment quality coefficient (Customer quality) (ratio of incorrectly shipped/under-invested/surplus to the shipped commodity flow) (calculated in monetary, commodity, positional units) Information about errors arises on the basis of satisfied customer complaints	+	+
4.10	Collection quality coefficient (Quality of commissioning) (the ratio of incorrectly selected goods to the planned shipped goods flow) (calculated in monetary, commodity, positional units) Information about errors comes from the selection operations control report	+	+
4.11	Complex quality coefficient (Logistic quality) (the ratio of the sum of all errors to the total planned shipped goods flow) (calculated in monetary, commodity, positional units)	+	+
4.12	Commodity loss ratio (ratio of commodity losses to storage capacity/shipped commodity flow/total commodity flow) (calculated in monetary or commodity units)	+	+
4.13	Available goods coefficient (the ratio of goods temporarily unavailable for picking/shipping, but located in the warehouse, to the total quantity of goods in the warehouse with the exception of picked or reserved goods) (calculated in monetary, commodity units)	+	+
4.14	System response time to a standard order (the time it takes to process a standard order from the moment it is typed to the moment it is shipped)	+
5	FINANCIAL AND ECONOMIC INDICATORS
5.1	Costs for implementing a turnkey warehouse system or its development	+	+
5.2	Costs for technological equipment and technical equipment	+	+
5.3	Specific costs per m 2 /m 3 (the ratio of total costs to the area/volume of the warehouse/unified storage areas)		+
5.4	Specific technological costs (ratio of costs for technological equipment and technical equipment to the area/volume of the warehouse)		+
5.5	Warehouse operating costs for the period	+	+
5.6	Specific operating costs for receiving/storing/shipping a commodity unit (ratio of operating costs to goods flow)		+
5.7	Specific operating costs per m 2 /m 3 for the period		+

A thorough analysis of the problems of managing complex warehouse systems shows the need to introduce comprehensive KPIs into practice to ensure balanced management. Let's look at a simple example that demonstrates the benefits of comprehensive KPIs that allow you to organize “self-tuning” warehouse systems.

Let the warehouse use the standard KPI for fulfilling orders for shipment of goods in the form of the ratio of completed orders to the number of received orders. In our example, 10 orders were received at the warehouse, but 9 were actually completed. Then the KPI is 0.90. This may be a good result from the standpoint of order management, but we need to take into account that the company served by our warehouse makes a profit from the sale of products and sales volumes in monetary terms are important to the company’s management. Let's look at the cost of our orders (Table 2).

table 2

Cost of applications

Application number
1	2	3	4	5	6	7	8	9	10
Cost of shipped goods by order number
100	1	1	1	1	1	1	1	1	1
The total cost of all received applications is 109 monetary units

If we now enter the KPI for shipment in monetary units into the system, then depending on which order was not shipped, we will receive the following KPI values ​​for the cases:

• order No. 1 worth 100 units has not been shipped, KPI = 9/109 or KPI = = 0.082 (!!!);
• Any order other than the first one has not been shipped, KPI = 108/109 or KPI = = 0.99 (!!!)

So, with the same KPI value “for orders shipped” of 90%, the KPI values ​​“for money shipped” can be 8.2% or 99%, depending on the cost of orders served. Let’s assume that the company has established the same strategic priorities between sales volumes and the number of customers, which in our case can be expressed by a complex KPIcomplex as the arithmetic mean of the constituent (basic) KPIs:

KPIcomplex = 0.5x(KPIorder + KPImoney).

For the case of failure to ship the first order, the complex KPI is equal to:

KPIcomplex = 0.5x(0.9 + 0.082) = 0.49.

In case of refusal to ship any other order, we receive:

KPIcomplex = 0.5x(0.9 + 0.99) = 0.945.

It is obvious that the introduction of a comprehensive KPI into the assessment of warehouse activity, which takes into account jointly operational and financial indicators, makes it possible to motivate warehouse personnel to manage the process of warehouse shipments taking into account the cost of the order, that is, its value for the company or its client - thus, the system receives elements of self-organization in management at the lowest level.

Examples of complex KPIs

Developing the idea of ​​assessing warehouse processes based on several performance parameters, we will give examples of complex KPIs that are used in the practice of our company and can be useful in “fine-tuning” complex warehouse complexes.

1. The coefficient of comprehensive customer service for the period (calculated in monetary, commodity, positional units).

The use of this indicator allows us to establish the degree of compliance of warehouse logistics with the requirements of sales departments. The complexity of the indicator consists in taking into account the work of the warehouse not only in operational, but also in monetary units, which allows taking into account the “weight” of the warehouse when assessing sales results and long-term sales planning. Indicators are calculated based on deviations according to Table 3.

When using the indicator of comprehensive customer service, you can direct warehouse employees to meet financial indicators of shipment by applying weighting coefficients when calculating a comprehensive KPI. In particular, shipment indicators in m3, lines, units of production may have lower “weights” in relation to the “financial” indicator of shipment.

2. Service coefficient for receiving goods for the period.

The purpose of introducing this KPI is to establish the degree of compliance of warehouse logistics with the requirements of purchasing departments. Indicators are calculated based on deviations according to Table 4.

Table 3

Comprehensive customer service ratio

Measured indicator	Declared to warehouse for shipment	Actually fulfilled by the warehouse	Divergence	KPI, %
Quantity, m 3	K1	K2	K1-K2	100-(K1-K2)x
Number of lines in orders	L1	L2	L1-L2	100-(L1-L2)x
Number of product units in orders	Q1	Q2	Q1-Q2	100-(Q1-Q2)x
Order amount/cost in monetary units	S1	S2	S1-S2	100-(S1-S2)x
Comprehensive KPI (%) = 100% for planned daily and seasonal shipments, subject to the availability of resources and technologies			((K1-K2)x100/K1)+ (L1-L2)xx100/L1+(Q1-Q2)x100/Q1+(S1- -S2)х100/S1))/4

Table 4

Service coefficient for receiving goods

Measured indicator (during the period)	Declared to the warehouse for acceptance	Actually fulfilled by the warehouse	Divergence	KPI, %
Quantity, m 3	K1	K2	K1-K2	100-(K1-K2)x
Number of deliveries	L1	L2	L1-L2	100-(L1-L2)x
Number of articles	A1	A2	A1-A2	100-(A1-A2)x
Number of product units in deliveries	Q1	Q2	Q1-Q2	100-(Q1-Q2)x
Amount/cost of supplies in monetary units	S1	S2	S1-S2	100-(S1-S2)x
Comprehensive KPI (%) = 100% for planned daily and seasonal deliveries, subject to the availability of resources and technologies			((K1-K2)x100/K1)+ (L1-L2)xx100/L1+(A1-A2)x100/A1)+(Q1- -Q2)х100/Q1+(S1-S2)х100/S1))/5

To “focus” the warehouse on the most strategically important area of ​​acceptance work, it is possible to introduce “weighting” coefficients that make it possible to strengthen the financial or operational indicators of goods acceptance into the warehouse.

3. Resource-intensive operations.

This indicator allows you to manage the efficiency of warehouse operations based on resource consumption (see Table 5).

Table 5

Commissioning resource intensity KPI

The correct formation of a KPI system for a warehouse complex allows you to combine the processes of quality management and strategic development through the selection of regulatory and strategic KPIs.

Main conclusions:

• KPIs of the warehouse system are formed in order to achieve the company’s strategic goals;
• Warehouse KPIs are projections of strategic indicators onto logistics (warehouse) activity;
• comprehensive KPIs make it possible to ensure the management and development of a warehouse system according to several significant characteristics at once.

Successful implementation of KPIs requires:

• detailed formalization of warehouse business processes;
• careful rationing of operations;
• developed automated accounting system and operational calculation of KPI;
• using KPI for calculation.

Kirill Tolmachev

General Director of Concept Logic LLC, Ph.D.

A kind of “framework” that allows you to formulate a company’s logistics strategy in the form of a set of operational goals that determine its behavior in the market and financial well-being is the method Balanced Scorecard (BSC). It makes it possible to assess the degree of achievement of goals, the effectiveness of business processes and the work of the company, its divisions and each employee using the so-called key performance indicators ( Englishkey performance indicators, KPI). Their linking with the employee motivation system increases the latter’s interest in achieving the company’s established goals and makes this interest permanent.

Application of BSC in the field of company logistics should help answer four critical questions:

1. How do internal and external clients evaluate logistics?

2. What processes can ensure the implementation of the logistics strategy?

3. How to achieve further improvement (innovation and learning)?

4. How do shareholders and top managers of the company evaluate the activities of logistics?

In the process of development and implementation of the system, the BSC should participate project team , including both specialists from the logistics department and top managers of the company. It is very useful to involve an external auditor-consultant.

To highlight key indicators and combine them into a system, you need to take the following steps:

1. It is necessary to formalize the goals of the logistics strategy

For example, if a company applies a corporate strategy of concentrated growth through territorial expansion of sales markets and increasing the range of products, the main elements of the logistics strategy can be, for example, minimizing investments in logistics infrastructure with decentralization of the distribution of commodity flows and a divisional structure of logistics management. This strategy can be implemented with the help of intermediaries (distribution companies), the creation of a network of regional distribution centers, and decentralized logistics management in designated sales regions. The main goals of such a strategy could be:

§ reduction of total operational logistics costs;

§ increasing the productivity of logistics infrastructure;

§ improving the quality of logistics services;

§ maintaining minimal costs with a high-quality level of service;

§ use of outsourcing schemes in logistics activities.

2. Determine the main logistics performance indicators and distribute goals in accordance with these indicators

The implementation of this step involves formulating the goals of the company's logistics strategy, which follow from its corporate strategy, and then presenting them in the form of management system indicators. To achieve this goal, it is necessary to analyze the possible levers of influence of logistics on the company’s business performance. In general, under "lever of logistics" understands its ability to increase business profitability.

For example, The company's logistics division consists of a logistics department (responsible for developing product delivery schedules, transport and warehouse operations) and a distributor department (controls customer service operations). When implementing the BSC system, the head of the company set the following goals for the project manager for the implementation of this system and the heads of departments:

§ Providing customers with quality service.

§ Organization of transparent work of company divisions.

§ Transparency in the accrual of bonuses to employees (now each employee can calculate their salary for the month).

Before the system was implemented (this happened gradually, experimentally), all areas of responsibility were distributed between departments.

That The BSC system of the company’s logistics division consists of the following groups of indicators:

1) Indicators assessing work with external clients and the quality of logistics services. They allow you to control the timeliness of provision and quality of delivery, the order and timing of documentation, and order processing. Depending on how accurately the employees acted in accordance with the regulations, raising or reduction factors these indicators (affect bonuses or deductions for employees). These indicators are divided into operational (evaluation of current work with the client for the month) and strategic (fulfillment of sales plan for the quarter, year).

2) Indicators that evaluate internal work(for example, the distributor relations department evaluates the work of the logistics department regarding the timely provision of transport).

To evaluate logistics, introduced no more than five coefficients (KPI): three for assessing external work, two for internal work. If there are too many indicators, employees begin to get confused and do not understand what and how they should do and control.

For example, KPIs that allow us to evaluate the activities of the department for working with distributors are formed as follows.

Operational indicators:

§ quality of shipments;

§ delivery time (compliance with contractual obligations, according to which we are obliged to deliver products within a certain time frame).

Strategic indicators:

§ fulfillment of the sales plan;

§ internal assessment of the department’s performance (for example, satisfaction of customer complaints).

The most commonly used are the following meters (metrics) for assessing the effectiveness of the logistics service :

§ Duration of logistics cycles.

§ Use of investments in logistics infrastructure.

§ Consumer satisfaction with the quality of logistics services.

§ General and operational logistics costs.

§ The ratio of productivity and resource efficiency of logistics infrastructure and personnel.

In addition, it is used strategic profit model. In this model, revenue, costs, inventories and other assets, varying depending on logistics activities, determine the contribution of logistics to the resulting business performance indicators - return on assets and return to the company's net worth.

3. It is necessary to determine methods and algorithms for calculating indicators (KPIs)

It is necessary to evaluate the effectiveness of logistics business processes across all groups of meters (metrics).

The indicators (KPI - for each metric) should be linked to individual staff motivation. In the future, data monitoring, measurement and evaluation should be carried out so that it is possible to understand what logistics business processes need to be improved and how to achieve such a distribution of resources so that it ensures the implementation of the company’s logistics strategy.

For example, The business development department is responsible for accounting and monitoring KPIs in the company. Accounting and quality are supervised by the development director, technical parameters are analyzed by his subordinates - customer service managers.

The standard scheme for using KPIs in business is as follows. During negotiations with potential clients, the possibility of introducing KPIs is discussed no earlier than a quarter after the start of cooperation. This time is necessary to analyze possible criteria for assessing quality, develop procedures and possible sanctions in case of low KPI values. Upon expiration of the established period, clients are provided with an idea of ​​the required KPIs; sometimes their partners complement them. After negotiations, a common understanding is reached on how to calculate and use KPIs, and a procedure is developed.

Basic indicators:

1) Compliance with the time of delivery of vehicles for loading. In accordance with requests from clients that we receive daily, we are obliged to submit vehicles for loading at the specified time. On our side, this is monitored by the manager, on the client’s side by the dispatcher or warehouse employees.

2) Technical characteristics of cars. Depending on the nature of the products, customers require different modes of transport. Machines must be of a certain cubic capacity and carrying capacity, be in good working order and meet the requirements for appearance.

3) Timely delivery. Each driver has his own route. Sometimes one car must deliver products to several stores. The company's responsibility is to implement the route plan.

4) Document flow. Each shipment is accompanied by a certain set of documents. The transport company is obliged to hand over a complete set with stamps confirming the acceptance of the products at the store.

5) Driver discipline. Drivers communicate with customer employees at the warehouse for loading vehicles and with partner customers during unloading. Thus, the company must guarantee the quality of delivery and discipline of personnel, which implies tactful communication, neat appearance of employees, knowledge of the specifics of the product, procedures for receiving and transferring products. Quality assessment criteria are established for all of the listed groups of indicators, and monthly the manager of the transport company, together with the client’s representative, fills out a table for each indicator (KPI). Next, the results obtained are summarized and compared with established work standards.

If it matches the established norm, the KPI is considered completed and the work is assessed as high quality. If the performance is lower than planned, the client may fine the contractor a certain amount of the total bill for services provided. If the KPI is higher than that fixed in the contract, the contractor can count on certain bonuses, if this has been agreed upon with the client. Since the implementation of KPIs depends on transport logistics managers (namely, they are responsible for organizational support of work with clients), then the company encourages them to provide high-quality services. Depending on the KPI level, a bonus is paid or a fine is imposed for each client. In order not to deal with low performance at the end of the month, each manager keeps records of KPIs daily. This allows you to take measures to improve performance.

4. It is necessary to develop programs to achieve the goals and objectives of logistics

Such programs must be agreed upon with the company’s top managers.

For example, performance must be evaluated by clients. For this you can use an indicator such as “customer satisfaction index” (CSI). At the same time, the company's quality service surveys consumers about the work of individual divisions of the company and asks them to give ratings (on the usual five-point scale, that is, 2 - unsatisfactory, 5 - excellent, etc.), resulting in a customer satisfaction index. It influences the formation of the bonus part of the salary in these departments.

Other KPIs can be developed separately for each department, depending on the specifics of the activity. Thus, the effectiveness of the customer service department is assessed using the following indicators:

§ strict adherence to the cargo delivery deadline;

§ cargo safety;

§ no deviations in terms of customer expectations and finances spent (we spent the amount we planned on delivery);

§ the number of tons of cargo transported (waybills processed).

At the same time, the company’s motivation system is built in such a way that KPIs influence the size of bonuses . This is especially true for sales managers. The bonus part of their salary is affected by the following: KPIs such as “profit”, “number of new customers”, “fulfillment of production plan” (the application comes from production departments), “deviation from the originally calculated rate.” At the end of the quarter, the coefficients of certain indicators may increase or decrease.

5. Provide information support for calculating balanced logistics indicators

It is necessary to create an information system for accounting and control by developing reporting forms. There are several common reporting forms that allow you to monitor standards and monitor actual logistics KPI values. Typically, logistics KPI reports, in which actual values ​​are compared with standard ones (so-called “actual-standard” reports), are maintained in the information system in the form of a table in Microsoft Excel.

6. It is necessary to review the composition and standards of KPIs depending on the influence of the external environment and the actions of competitors

The result of the work should be basic structure of logistics KPIs included in the overall balanced scorecard (BSC) of the company. Subsequently, the project team is engaged in clarifying the set and methods for calculating KPIs, creating a working version of the BSC, and then determining the sequence in which the system will be implemented. A fundamentally important task – establishing KPI standards and procedures for their planning (for example, using a benchmarking tool). It is also necessary to develop communication plan to communicate information on the company’s logistics strategy and the use of KPIs to each logistics employee, determine and debug information support for calculating and monitoring KPIs in the corporate information system.

As you work, you may need to re-detail the company's strategic objectives in order to accurately define the metrics needed to measure logistics performance.

Efficiency of using KPIs in logistics is largely determined by correctly constructed corporate database of logistics operations , which is part of the general corporate information system (CIS) database.

Detailing of costs (each logistics operation must include the costs of financial resources, time and labor intensity) is the basis for normalizing resource costs in the company and allows you to effectively control logistics indicators.

The implementation of BSC logistics makes it possible to achieve the following goals:

1. Receive stable profits and optimize added value for the client in the supply chain.

2. Increase the company's capitalization.

3. Ensure customer loyalty.

4. Achieve high productivity of logistics infrastructure units and streamlined logistics business processes.

5. Achieve a flexible response of the supply chain to external and internal factors related to logistics.

Table 1. Main measures and composition of KPI indicators for the effectiveness of logistics solutions

Meters	Composition of indicators (KPI)
Duration of logistics cycles	Time: · · order fulfillment; · · duration of order cycle components; · · delivery of the order to the consumer; · · processing orders by the consumer; · · order preparation and completion; · · stock replenishment; · · production and technological cycle; · · product procurement cycle; · · reporting cycle
Leveraging investments in logistics infrastructure	· · Return on investment in fixed assets · · Investment in information system · · Investment in warehouse infrastructure · · Investment in technological equipment · · Investment in transport fleet · · Speed ​​and quantity of inventory turnover · · Average inventory level
Quality of logistics service for consumers	· · Inventory availability · · Information and communication reliability · · Number of product returns; lack of stocks, increase in tariffs · · Presence of consumer complaints · · Ensuring order fulfillment exactly on time · · Completeness of order satisfaction · · Accuracy of fulfillment of order parameters
General and operational logistics costs	Costs: · · for internal and external transportation; · · cargo handling and warehousing; · · logistics support of production; · · order processing; · · Inventory Management; · · damage from insufficient quality of logistics service (loss of sales, return of goods, etc.)
Productivity (resource efficiency) of logistics infrastructure and personnel	· · Freight shipments per unit of warehouse capacity and vehicle cargo capacity · · Distribution costs per unit of sales volume · · Number of orders processed per unit of time · · Ratio of total logistics costs per unit of output · · Ratio of operating logistics costs per unit of invested capital · · Input-output relationships for the dynamics of product output and document flow

Table 2. Examples of logistics KPIs

Index	Unit change	Target	Definition	Formula	Example/Comments
KPI "Reliability of delivery in the supply chain"
KPI "Supply chain costs"
General logistics costs/sales	%		Total logistics costs include all costs for warehousing, transportation, management and administration, as well as packaging costs and return flow management. The indicator is calculated for a certain period of time	Ratio of total costs to total sales
Unit costs for warehousing and transportation	Doll. US/ton	Determine the total costs of warehousing and transportation per ton of goods sold. It helps track processes to reduce and optimize logistics costs in physical distribution operations	Determination of the ratio of total costs for storage and transportation of one ton. Costs should include warehousing, distribution and transportation costs	Unit costs for warehousing and transportation / total number of tons of goods sold	Total warehousing and transportation costs for the month are $285,000. 48,580 tons delivered to customers. Unit storage and transportation costs = 285,000 / 48,580 = $5.866/ton
KPI “Efficiency of logistics asset management in the supply chain”
Stock of commercial products	Days	Determining the quantity of goods in stock ready for sale. Reflects the level of capital tied up in goods, assortment, and flexibility of the planning procedure. If the inventory is large, this indicates that the company is not able to respond flexibly to market changes, and the inventory may contain obsolete goods

KPI is a performance indicator that allows you to objectively assess the effectiveness of actions performed. This system is used to evaluate various indicators (the activities of the entire company, individual structures, specific specialists). It not only performs control functions, but also stimulates labor activity. Often, a remuneration system is built on the basis of KPIs. This is a method for forming the variable part of the salary.

KPI key performance indicators: examples in Excel

The stimulating factor in the KPI motivation system is monetary reward. It can be received by the employee who has completed the task assigned to him. The amount of the bonus/bonus depends on the performance of a particular employee in the reporting period. The amount of remuneration can be fixed or expressed as a percentage of the salary.

Each enterprise determines key performance indicators and the weight of each individually. The data depends on the company's objectives. For example:

1. The goal is to achieve a product sales plan of 500,000 rubles monthly. The key indicator is the sales plan. Measurement system: actual sales amount / planned sales amount.
2. The goal is to increase the amount of shipments in the period by 20%. The key indicator is the average shipment amount. Measurement system: actual average shipment / planned average shipment.
3. The goal is to increase the number of clients by 15% in a certain region. The key indicator is the number of clients in the enterprise database. Measurement system: actual number of clients / planned number of clients.

The enterprise also determines the spread of the coefficient (weights) independently. For example:

1. Fulfillment of the plan less than 80% is unacceptable.
2. Plan fulfillment 100% - coefficient 0.45.
3. Fulfillment of the plan 100-115% - coefficient 0.005 for every 5%.
4. No errors – coefficient 0.15.
5. There were no comments during the reporting period – coefficient 0.15.

This is only a possible option for determining motivational coefficients.

The key point in measuring KPI is the ratio of the actual indicator to the planned one. Almost always, an employee’s salary consists of a salary (fixed part) and a bonus (variable / variable part). The motivation coefficient influences the formation of the variable.

Let’s assume that the ratio of the constant and variable parts in the salary is 50 × 50. Key performance indicators and the weight of each of them:

Let us accept the following coefficient values ​​(the same for indicator 1 and indicator 2):

KPI table in Excel:

Explanations:

This is a sample KPI table in Excel. Each enterprise makes up its own (taking into account the characteristics of work and the bonus system).



KPI matrix and example in Excel

To evaluate employees against key performance indicators, a matrix, or agreement on goals, is drawn up. The general form looks like this:

1. Key indicators are the criteria by which the work of personnel is assessed. They are different for each position.
2. Weights are numbers in the range from 0 to 1, the total sum of which is 1. They reflect the priorities of each key indicator, taking into account the company’s objectives.
3. Base – acceptable minimum value of the indicator. Below the basic level – no result.
4. Norm – planned level. Something that an employee must do. Below - the employee failed to cope with his duties.
5. A goal is a value to strive for. An above-standard indicator that allows you to improve results.
6. Fact – actual results of work.
7. The KPI index shows the level of results in relation to the norm.

Formula for calculating kpi:

KPI index = ((Actual - Base) / (Norm - Base)) * 100%.

An example of filling out a matrix for an office manager:

The performance coefficient is the sum of the products of indices and weights. Employee performance ratings are clearly shown using conditional formatting.

We continue the series of articles devoted to the KPI-based motivation system. Previously, several theoretical constructs related to the popular KPI tool and the theory of phase business transformations (TPBT) were considered. In combination, they make it possible to create a management system at the enterprise that will not change dramatically with the active growth of the company and will help to develop staff motivation to achieve the goals of the organization, and not just to work for a salary. In this article we will consider KPI options for the logistics service of an enterprise.

Let us distinguish three types of logisticians:

1. Strategists - are able to fit the most complex logistics system into the activities of an enterprise, taking into account development plans, local and interregional features, and the latest achievements in the field of logistics art. They talk with the owner both in the format of production meetings and privately.

How to direct an employee to

2. Tactics - they think in terms of specific tasks, live “here and now”, use enterprise resources with varying degrees of efficiency to achieve results, operate transport, warehouses, customs and other “attributes” of their activity with the skill of a juggler, are constantly in “field conditions” ”, knowing all their staff - from warehouse managers to workers, and rarely attend general production meetings at the head office, because “there’s no time for that”.

3. “Ordinary logistician” (logisticus vulgaris) is the most widespread type of logistician. They have different levels of education and live by the principle “take more, throw further, relax while it flies.” The KPI method does not discipline them, therefore, for this type of worker it is recommended to maintain staff turnover at the level of 70% per year, so that the social connections they develop do not lead to an increase in the percentage of “shrinkage” of goods, the announcement of “fixed” rental prices for warehouses and informal relations with suppliers of raw materials (if the purchase is included in logistics, which is sometimes found in the management system of companies).

We will consider the method of motivation based on KPI in relation to the first two types of logisticians - strategist and tactician, combining them into one group.

So, let’s choose a common goal for the three phases of the company’s development: create an effective logistics system. This goal involves tasks of different levels and, of course, interests the owner of the enterprise at all three of these phases (one can hardly dispute the relevance of this goal for a company of any level of maturity). There can be many KPIs; for example, we will focus on five indicators that can be assessed with almost any accounting system - manual or automated.

KPI 1 - average inventory turnover period.

KPI 2 - the coefficient of loss of inventories and raw materials in relation to the cost of raw materials and inventories written off due to deterioration (often called the “natural loss coefficient”).

KPI 3 - transport downtime associated with repairs.

KPI 4 - average delivery time.

KPI 5 - cost of the supply chain (if it is not possible to calculate it, i.e. the logistics process is not described in detail, not formalized in terms of cost, then it is possible to calculate the share of the costs of the logistics service in the total costs of the company). This indicator helps manage efficiency: increasing department capacity should not increase the cost of the supply chain (indeed, the share of service costs in company expenses should decrease as the service grows).

Let's take a closer look at the options for distributing KPI weights (table).

Phase 1

Option 1. The logistics system is configured for quick sales and replenishment of inventories while fixing the cost of operations and delivery times. The rest (including transport downtime) is less important. Moreover, transport is either not idle or is outsourced.

Option 2. Also quick sales, but at the same time maximizing the use of transport and tracking the price of the issue. Most likely, there are few starting funds or they are borrowed, so every penny counts. Nevertheless, taking into account “shrinkage” - KPI 2 - is not yet a priority, because it is not possible to keep track of everyone, or initially the fact of “shrinkage” was included in the cost, so as not to demonstrate greater pickiness when hiring personnel.

Phase 2

Option 1. Focus on building internal logistics processes, tracking “shrinkage”, making organizational decisions and fixing delivery dates (usually the average delivery time, taking into account seasonality, supplier characteristics, industry “ambushes”, etc., is already known by this period, so it is standardized ). Not the best option, because... competitors can more quickly and flexibly resolve the issue of delivery times, and while the company is busy building its processes, it may lose the market share it won in the first phase.

Option 2: Getting the most out of an already built system to reduce delivery time without increasing the cost of the supply chain. Or reducing the cost of the supply chain without increasing delivery time.

Phase 3

The use of the described methodology, firstly, allows logistics managers to clearly focus on the company’s goals, and secondly, specialists can build plans and actions to achieve them, moving from phase to phase without a radical change in goals, objectives and methods of motivation.

Option 1. Intensive sales with minimal delivery times, since the rest of the system has already been built in the previous phase, but the use of transport is separately optimized (switching to outsourcing is possible).

Option 2. Quickly capture the market by minimizing delivery times in order to get ahead of competitors. However, despite the active filling of market niches with the company’s product, the cost of the supply chain is normalized and is not growing. Excellent, well-established business. Normalizing the cost of the supply chain at this phase is a process associated with minimizing “shrinkage” and transport downtime, therefore KPI 2 and KPI 3 have a small weight.