What are key performance indicators (KPIs) used for in logistics?

Key performance indicators (KPIs) play a crucial role in logistics by providing measurable values that indicate how effectively a company is achieving key business objectives related to its logistics operations. By focusing on efficiency and effectiveness, these metrics allow organizations to assess their performance in areas such as inventory management, transportation and shipping, order fulfillment, and overall supply chain management.

Using KPIs, logistics managers can track progress over time, identify areas that need improvement, and make data-driven decisions to enhance operational performance. For example, metrics like on-time delivery rates, order accuracy, and transportation costs per unit can help pinpoint where inefficiencies exist or where processes can be optimized.

This focus on efficiency and effectiveness distinguishes the correct choice, as it directly aligns with the purpose of KPIs in logistics. The other options, while they address important aspects of business operations, do not specifically relate to the primary function of KPIs in assessing the logistics sector.