What are "key performance indicators" (KPIs) in logistics?

Key performance indicators (KPIs) in logistics are metrics used to evaluate the success of a logistics operation against its objectives. They provide quantifiable measurements that allow organizations to gauge their effectiveness and efficiency within the supply chain. KPIs help logistics managers assess performance in specific areas such as delivery times, order accuracy, inventory turnover, and transportation costs.

By establishing KPIs, companies can set benchmarks and targets that align with their strategic goals, allowing them to track progress over time and make data-driven decisions to improve their operations. This is essential for optimizing processes, reducing waste, and enhancing customer satisfaction. KPIs can also aid in identifying areas that require attention and improvement, ensuring that logistics functions contribute positively to the overall success of the business.

The other options focus on narrower aspects of logistics management, such as employee productivity or inventory systems, and do not encapsulate the broader role that KPIs play in evaluating an entire logistics operation's success against its defined goals.