Logistics KPI or key performance indicators can help managers develop strategies and make decisions that will positively impact any organization’s logistics. This article discusses the KPI concept and its application to logistics.
Strategic management thrives on quantification and measurement. This approach started off strictly in the financial aspect of things: costs versus profits, supply versus demand, and so on. As management techniques evolved, the use of measurable parameters, known as metrics, and the most important of which are known as key performance indicators, became more commonplace. This objective, measurement based approach also gradually spread to encompass nearly all aspects of organizational performance.