Calculation of kpi in transport logistics. Structure of key performance indicators (KPIs) for the company’s logistics

General Director of Concept Logic

Magazine "Warehouse Technologies", No. 2 2008.

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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, for each business system, business process, business function, target benchmarks are established - 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- these 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 the formation of KPIs for a warehouse system is shown in the figure.

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 on page 32 summarizes the main KPIs recommended in our company’s practice for use in mechanized and automated warehouses.

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).

If we now enter 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 = 0.5 (KPIapplication + KPImoney).

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

KPIcomplex = 0.5(0.9 + 0.082) = 0.49.

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

KPIcomplex = 0.5(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.

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 makes it possible to take 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.

Product acceptance service ratio 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.

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.

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

Any business organization, introducing logistics and forming a logistics system that meets its goals, first of all seeks to assess its actual or potential effectiveness. During the development of logistics in industrialized countries, a system of indicators has been formed that, in general terms, evaluate its efficiency and effectiveness. Let's look at a brief description of complex indicators, which usually include:

general logistics costs;
quality of logistics service;
duration of logistics cycles;
performance;
return on investment in logistics infrastructure.

These indicators can be called key or complex performance indicators of the logistics system. They form the basis of companies’ reporting forms and systems of indicators for logistics plans at different levels. There are generally accepted procedures for the comparative assessment of companies (benchmarking) in the field of logistics based on analytical and expert methods, using the specified complex indicators.

Thus, key/complex performance indicators of a logistics system are the main indicators of the efficiency of resource use in a company for a formed logistics system, which collectively evaluate the effectiveness of logistics management and are the basis of logistics planning, accounting and control.

Let's look at a brief description of complex indicators.

General logistics costs are the total costs associated with the complex of functional logistics management and logistics administration in the logistics system.

The following main groups of costs can be distinguished as part of general logistics costs:

costs of performing logistics operations/functions (operational, operational logistics costs);
damages from logistics risks;
logistics administration costs.

Most reporting forms on the implementation of the logistics plan contain indicators of logistics costs, grouped by functional areas of logistics, for example, costs in material management, costs of physical distribution operations, etc., and within these areas by logistics functions. It is generally accepted in Western business to allocate and account for the costs of transportation, warehousing, cargo handling, inventory management, order management, information and computer support, etc.

Often, to solve problems of optimizing the structure or management in a logistics system, the loss of profit from freezing (immobilization) of products in inventory, as well as damage from logistics risks or low quality of logistics service are taken into account as part of the total logistics costs. This damage is usually assessed as a possible decrease in sales volume, reduction in market share, loss of profit, etc.

An analysis of the structure of logistics costs in various industries of economically developed countries shows that the largest share in them is occupied by costs for:

inventory management (20-40%);
transportation costs (15-35%);
expenses for administrative and management functions (9-14%).

Over the past decade, there has been a noticeable increase in the logistics costs of many Western companies for such logistics functions as transportation, order processing, information and computer support, as well as logistics administration.

Renowned US logistics consultant Herbert W. Davis has for several years tracked US industrial logistics costs for warehousing, transportation, order management/customer service, distribution management, and inventory management as an integral part of the final product price and customer service. In 2007, for example, the structure of logistics costs, expressed as shares (%) of sales, was as follows: transportation of finished products - 4.08%; warehousing - 2.40; customer service/order management - 0.55; distribution management - 0.36; cost of holding inventory (at 18% discount rate) - 1.81% - total quantity 9.02%. Cost structure (in dollars per hundred pounds of product weight): transportation of finished products - 13.24; warehousing - 10.79; customer service/order management - 4.07; distribution management - 2.53; and the cost of holding inventory at an 18% discount rate is 18.13. The total amount was 47.48.

Analysis of logistics costs by Western companies is usually carried out as a percentage of standard, volume or resource indicators, for example:

logistics costs in relation to sales volume;
individual components of logistics costs in relation to total costs;
a firm's logistics costs relative to industry standards or averages;
logistics costs in relation to relevant items of the company’s budget;
logistics resources of the budget at the current moment in relation to projected costs.

The listed indicators are often included in reporting forms on logistics performance (productivity), focusing on the efficiency of using the company's financial resources.

Using total logistics costs as a key indicator when forming a logistics strategy in domestic business encounters a number of difficulties caused by the following main reasons:

the inability of the current accounting and statistical reporting system of enterprises to highlight many components of logistics costs;
the presence in domestic business of “double” accounting, “black cash”, the secrecy of financial information for partners in the logistics system and even between structural divisions within the company, etc.;
lack of methods for calculating damage from logistics risks, etc. The concept of quality of logistics service is based on the standardized terms “service” and “service”.

Essentially, the vast majority of logistics operations/functions are services, so logistics service can be defined as the process of providing logistics services (as a result of performing relevant operations or functions) to internal or external consumers.

Intermediaries operating in the logistics system are mainly service enterprises in which services are inextricably linked with the product, distributed, promoted and sold in various parts of the logistics network. These links include various transport companies, forwarders, wholesale and retail traders, warehouses, terminals, customs brokers, insurance companies, etc. At the same time, the cost of logistics services can significantly exceed the costs of production directly.

Despite the importance of logistics services for the implementation of corporate strategies, there are still no effective ways to assess its quality, which is explained by a number of features of the service characteristics in comparison with the characteristics of products. These features are:

Intangibility of service. It is difficult for service providers to explain and specify types of services, and it is also difficult for buyers to evaluate them.
The buyer is often directly involved in the production of services.
Services are consumed at the moment they are produced, i.e. services are not stored or transported.
The buyer never becomes the owner by purchasing services.
A service is an activity and therefore cannot be tested before the customer buys it.

These characteristics and features of services play an important role in the logistics process. It is very important to take into account the fact that the quality of service in logistics manifests itself at the moment when the service provider and the buyer meet. Measuring service quality in the analysis and design of a logistics system should be based on the criteria used by buyers of logistics services for these purposes. When a buyer evaluates the quality of a logistics service, he compares some actual values of quality “measurement parameters” with his expected values of these parameters, and if these expectations coincide, then the quality is considered satisfactory.

In relation to logistics services, in our opinion, it is more appropriate to define quality as “the degree of discrepancy between customer expectations and their perception of such criteria as reality, reliability, responsiveness, competence, politeness, trust, safety, communication skills, understanding of the customer. Accordingly, those companies in which the client feels the most complete presence of these characteristics are perceived by him as companies with the highest quality.”

The most important components (parameters) of measurement quality of service:

tangibility - the physical environment in which service, amenities, office equipment, equipment, type of personnel, etc. are presented;
reliability - just-in-time execution, i.e., for example, in physical distribution, delivery of the right product at the right time to the right place. Reliability of information and financial procedures accompanying physical distribution;
responsibility - the desire to help the buyer, guarantees of service delivery;
completeness - availability of the required skills, competence, knowledge;
accessibility - ease of establishing contacts with service providers, convenient time for the buyer to provide logistics services;
safety - absence of danger, risk, mistrust (for example, safety of cargo during transportation);
politeness - behavior of the service provider, correctness of staff;
communication skills - the ability to speak in a language understandable to the buyer;
mutual understanding with the buyer - sincere interest in the buyer, the ability to understand his needs (requirements).

The specification of logistics service quality parameters and the choice of methods (methods) for their assessment and control are perhaps the most difficult issues in logistics administration.

The most important comprehensive indicator of the efficiency of the logistics system is the duration of the full logistics cycle - the time of execution of the consumer's (buyer's) order. The use of this indicator (or its individual components) is determined by the requirements of corporate strategy if time is chosen as the main factor in increasing the competitiveness of the company.

A complex indicator - the productivity (effectiveness) of a logistics system - is determined by the volume of logistics work (services) performed by technical means, technological equipment or personnel involved in the logistics system per unit of time, or by the specific consumption of resources in the logistics system.

Most foreign companies with logistics services prepare special reports on logistics performance/productivity, which reflect a fairly large number of indicators, for example:

number of processed orders per unit of time;
freight shipments per unit of storage capacity and cargo capacity of vehicles;
an “input-output” relationship to reflect the dynamics of product output and document flow;
the ratio of operational logistics costs per unit of invested capital;
the ratio of logistics costs per unit of production;
logistics costs in distribution per unit of sales volume, etc.

As can be seen from the above list, if productivity is measured by the volume of work of personnel or equipment per unit of time (or per specific parameters of technological equipment, vehicles, or per unit of area, volume, etc.), then effectiveness is characterized mainly by specific expenditures of financial resources in the logistics system.

As indicators efficiency of vehicle use may, for example, be the coefficient of utilization of the carrying capacity (load capacity) of a vehicle, the volume of transportation or the freight turnover of rolling stock per hour (shift, day), the freight turnover per 1 ton of the vehicle's carrying capacity, etc. To assess the efficiency of using warehouse handling equipment, an indicator of the volume of cargo handling per unit of time can be used.

Performance indicators can be applied to infrastructure logistics units of the logistics system as a whole. For example, a general indicator of warehouse productivity can be warehouse turnover per day, etc.

In foreign practice of logistics management, in most cases, productivity and productivity (effectiveness) indicators are not separated. The “logistics performance” indicator is more consistent in meaning with the “resource productivity” indicator accepted in our economy; it characterizes the specific consumption of financial, material, energy, and labor resources in relation to volumetric or other planned indicators.

A complex indicator - return on investment in logistics infrastructure - characterizes the effectiveness of investments in units of the logistics system infrastructure, which currently include:

warehousing (warehouses of various types and purposes, cargo terminals and terminal complexes);
transport units of various types of transport;
transport communications (roads and railways, railway access roads, etc.);
repair and support units serving the transport and warehousing industry;
telecommunication system;
information and computer system (a set of technical means and office equipment).

The return on investment in the listed logistics infrastructure facilities is determined in accordance with the current regulatory and methodological documents for assessing the effectiveness of capital investments.

During the development of logistics in industrialized countries, a system of indicators has been formed that generally assess its efficiency and effectiveness, which usually include:

general logistics costs;
quality of logistics service;
duration of logistics cycles;
performance;
return on investment in logistics infrastructure.

Let's look at a brief description of complex indicators.

General logistics costs are the total costs associated with the complex of functional logistics management and logistics administration in the logistics system.

The following main groups of costs can be distinguished as part of general logistics costs:

costs of performing logistics operations/functions (operational, operational logistics costs);
damages from logistics risks;
logistics administration costs.

An analysis of the structure of logistics costs in various industries of economically developed countries shows that the largest share in them is occupied by costs for:

inventory management (20-40%);
transportation costs (15-35%);
expenses for administrative and management functions (9-14%).

Renowned US logistics consultant Herbert W. Davis has for several years tracked US industrial logistics costs for warehousing, transportation, order management/customer service, distribution management, and inventory management as an integral part of the final product price and customer service. In 2007, for example, the structure of logistics costs, expressed as shares (%) of sales, was as follows: transportation of finished products - 4.08%; warehousing – 2.40; customer service/order management – 0.55; distribution management – 0.36; inventory holding cost (at 18% discount rate) – 1.81% – total quantity 9.02%. Cost structure (in dollars per hundred pounds of product weight): transportation of finished products - 13.24; warehousing – 10.79; customer service/order management – 4.07; distribution management – 2.53; and the cost of holding inventory at an 18% discount rate is 18.13. The total amount was 47.48.

Analysis of logistics costs by Western companies is usually carried out as a percentage of standard, volume or resource indicators, for example:

logistics costs in relation to sales volume;
individual components of logistics costs in relation to total costs;
a firm's logistics costs relative to industry standards or averages;
logistics costs in relation to relevant items of the company’s budget;
logistics resources of the budget at the current moment in relation to projected costs.

The listed indicators are often included in reporting forms on logistics performance (productivity), focusing on the efficiency of using the company's financial resources.

Using total logistics costs as a key indicator when forming a logistics strategy in domestic business encounters a number of difficulties caused by the following main reasons:

the inability of the current accounting and statistical reporting system of enterprises to highlight many components of logistics costs;
the presence in domestic business of “double” accounting, “black cash”, the secrecy of financial information for partners in the logistics system and even between structural divisions within the company, etc.;
lack of methods for calculating damage from logistics risks, etc. The concept of quality of logistics service is based on the standardized terms “service” and “service”.

Intangibility of service. It is difficult for service providers to explain and specify types of services, and it is also difficult for buyers to evaluate them.
The buyer is often directly involved in the production of services.
Services are consumed at the moment they are produced, i.e. services are not stored or transported.
The buyer never becomes the owner by purchasing services.
A service is an activity and therefore cannot be tested before the customer buys it.

The most important components (parameters) for measuring service quality:

tangibility– the physical environment in which service, amenities, office equipment, equipment, type of personnel, etc. are presented;
reliability– just-in-time execution, i.e., for example, in physical distribution, delivery of the right product at the right time to the right place. Reliability of information and financial procedures accompanying physical distribution;
responsibility– desire to help the buyer, guarantees of service;
completeness– availability of the required skills, competence, knowledge;
availability– ease of establishing contacts with service providers, convenient time for the buyer to provide logistics services;
safety– absence of danger, risk, mistrust (for example, safety of cargo during transportation);
politeness– behavior of the service provider, correctness of personnel;
communication skills– ability to speak a language understandable to the buyer;
mutual understanding with the buyer– sincere interest in the buyer, the ability to understand his needs (requirements).

The specification of logistics service quality parameters and the choice of methods (methods) for their assessment and control are perhaps the most difficult issues in logistics administration.

The most important comprehensive indicator of the efficiency of the logistics system is duration of the full logistics cycle– time of execution of the consumer’s (buyer’s) order. The use of this indicator (or its individual components) is determined by the requirements of corporate strategy if time is chosen as the main factor in increasing the competitiveness of the company.

Complex indicator – productivity (effectiveness) of the logistics system– determined by the volume of logistics work (services) performed by technical means, technological equipment or personnel involved in the logistics system, per unit of time, or by the specific consumption of resources in the logistics system.

Most foreign companies with logistics services prepare special reports on logistics performance/productivity, which reflect a fairly large number of indicators, for example:

number of processed orders per unit of time;
freight shipments per unit of storage capacity and cargo capacity of vehicles;
an “input-output” relationship to reflect the dynamics of product output and document flow;
the ratio of operational logistics costs per unit of invested capital;
the ratio of logistics costs per unit of production;
logistics costs in distribution per unit of sales volume, etc.

As indicators of the efficiency of using vehicles, for example, the coefficient of utilization of the carrying capacity (carrying capacity) of the vehicle, the volume of transportation or the turnover of rolling stock of transport per hour (shift, day), the freight turnover per 1 ton of the vehicle's carrying capacity, etc. can serve. To assess the efficiency of using warehouse handling equipment, an indicator of the volume of cargo handling per unit of time can be used.

In foreign practice of logistics management, in most cases, productivity and productivity (effectiveness) indicators are not separated. The meaning of the “logistics performance” indicator is more consistent with the indicator accepted in our economy - resource productivity? It characterizes the specific consumption of financial, material, energy, and labor resources in relation to volumetric or other planned indicators.

A complex indicator - return on investment in logistics infrastructure - characterizes the efficiency of investment in units of the logistics system infrastructure, which currently include:

warehousing (warehouses of various types and purposes, cargo terminals and terminal complexes);
transport units of various types of transport;
transport communications (roads and railways, railway access roads, etc.);
repair and support units serving the transport and warehousing industry;
telecommunication system;
information and computer system (a set of technical means and office equipment).

Indicators are a kind of language in which you can formalize development strategies, build hypotheses and propose solutions. Interest in indicators is growing every day. The reasons for the increased interest in indicators include the development of a targeted approach to performance assessment, the spread of the concepts of a balanced scorecard and controlling, the desire to evaluate the contribution of individual functions to the success of the company, and the transition to process management.

The indicators allow:

assess the degree of achievement of the goal by comparing planned indicators with actual ones;
compare the results of work (of people, departments, companies, different parts of the supply chain);
compare homogeneous indicators for different periods of time;
analyze the impact of changes on the supply chain;
identify bottlenecks in logistics.

Two scorecards are widely used in logistics: the balanced scorecard as a tool for strategic controlling and the system of key performance indicators (key performance indicators - KPT), which is a tool for operational controlling. Specific calculation and evaluation indicators can be included in either one of these systems or present in both systems of indicators. The balanced scorecard was discussed in the previous paragraph; it was considered in the context of developing a logistics strategy and a supply chain strategy. The purpose of key indicators is to adequately reflect the degree of efficiency of operational and functional (service) logistics processes.

Logistics KPI structure

The structure and composition of key indicators for assessing logistics performance are given in Table. 9.8.

Table 9.8. Characteristics of efficiency indicators for logistics solutions

Meter	Composition of indicators
Quality of logistics service	Ensuring that the order is completed exactly on time. Completeness of order satisfaction. Accuracy of fulfillment of order parameters. Information communication reliability and timeliness. Number of product returns, stock outs, tariff increases. Presence of consumer complaints. Stock Availability
Leveraging investments in logistics infrastructure	Speed and quantity of inventory turnover. Average inventory level. Return on investment in fixed assets. Use of investments in warehouse infrastructure and equipment. Use of investments in information system
General and operational logistics costs	General logistics costs. Costs for logistics support of production. .Costs for internal and external transportation. Costs of warehousing and cargo handling. Costs associated with ordering procedures. Inventory management costs. Damages from insufficient quality of logistics services (loss of sales, return of goods, etc.)
Duration of logical cycles	Order lead time. Duration of order cycle components. Replenishment time. Processing time for consumer orders. Delivery time of the order to the consumer. Time to prepare and complete an order. Production and technological cycle time. Duration of the goods procurement cycle. Report preparation cycle time
Productivity/resource efficiency of logistics infrastructure	The number of orders processed per unit of time. Freight shipments per unit of storage capacity and vehicle cargo capacity. Input-output relationships for release dynamics;! products and document flow. The ratio of operational logistics costs per unit of invested capital. The ratio of operational logistics costs per unit of production. Distribution costs per unit of sales volume

From the table Table 9.8 shows that the main performance indicators of logistics activities are indicators of total logistics costs, quality of logistics service, logistics cycle time, productivity and efficiency of investments in logistics infrastructure.

Logistics costs consist of the costs of performing logistics operations, the costs of risk management in the logistics system and the costs of logistics administration.

Indicators of the quality of logistics services are the order completion rate, the number of goods returned, the safety of the delivered batch, the duration of logistics cycles, etc. The general indicator on the basis of which the quality of the logistics service can be assessed is the percentage of “complete” orders.

Productivity is the volume of logistics work performed by technical means, equipment, and personnel per unit of time.

Indicators for assessing the effectiveness of investments in logistics infrastructure are given in Table. 9.9.

Table 9.9. Indicators of economic efficiency of investments in logistics infrastructure

The minimum set of indicators by which the performance of logistics can be assessed includes an assessment of the quality of service (by ensuring a given level of “perfect order”), response time (by the time it takes to complete an order in the supply chain) and total costs (by the cost of logistics services).

For each type of activity in logistics (transportation, warehousing, inventory management, purchasing, etc.) its own set of key indicators is formed, which depends on the profile of the organization and the priorities of its development as a business structure, and may be different for different companies. For example, in the field of transportation the following indicators are used:

quality of logistics service (number (share) of orders delivered on time; number (share) of undelivered goods accepted for transportation; percentage of cargo damage; delivery delays in days of delay and percentage of days of delay in the promised delivery time);
delivery costs;
productivity (delivery frequency - orders per period of time; quantity of goods delivered per period of time and (or) per order; freight shipments per unit of cargo capacity and vehicles; ratio of transport costs per unit of invested capital);
order fulfillment time, order response time.

Practice issues

The Spetstekhnika company, which supplies specialized equipment from European manufacturers to the Russian market and is an official dealer, has developed a system of key indicators for assessing the fulfillment of consumer orders, which is presented in Table. 9.10. From this table it can be seen that the company divides orders into already completed, current and future. To evaluate completed and current orders, keys are used

Table 9.10.

high indicators corresponding to the table. 9.8, to evaluate future orders - indicators of other functionalities of the enterprise: sales, marketing, customer interaction service, etc.

As you know, it is no longer possible to influence the indicators of completed orders, since they have already been completed, but based on an analysis of their implementation, it is possible to develop corrective measures aimed at new orders. It is the indicators of completed orders that are used in operational controlling systems. Based on the analysis of indicators of current orders, regulatory decisions and, if necessary, quick response measures for deviations in order fulfillment parameters can be proposed. Indicators of future orders are important from the point of view of the development of the enterprise as a whole and its individual divisions. They will make it possible to prepare in advance decisions regarding logistics capacities (own or attracted, for example, the capacity of logistics intermediaries), preliminary decisions on the design (reengineering) of supply chains.

The indicators are also divided into three levels. At the first level, complex key indicators are considered, at the second level - indicators that form the first level. If necessary, indicators that influence the second level indicators can be determined. For indicators of the second and third levels, weighting coefficients are determined that reflect the contribution to the indicator of a higher level.

Police officer O.K.. Pletneva I.G. Formation of a system of key indicators for the processes of order fulfillment and service for a dealer of auto and special equipment: logistics and entrepreneurial aspects // Logistics: modern development trends: materials of the XII International. scientific-practical conf. St. Petersburg: SPbGIEU, 2013. pp. 181-185.

The term KPI has already entered the lexicon of logisticians. This was confirmed by the recently held second Ukrainian Logistics Forum, organized by Conference House, “Strategic Partner” and others. Moreover, logistics specialists actively use KPIs. your practice.

After my report at the forum (it was dedicated to the practice of using KPI indicators for the effective management of enterprise inventories), questions were asked from the audience, which made it clear that my listeners are faced with this problem every day. Therefore, they are interested in the details of the use and application of key logistics performance indicators, and not the concept and methodology itself, as it was before!

The main purpose of using a system of KPI indicators in logistics is to monitor, control and evaluate the efficiency of the logistics system as a whole. After all, the answer to the question about the competitiveness of logistics at an enterprise lies precisely in assessing the effectiveness of its work. Moreover, the importance of assessment is emphasized not only by owners, directors, and heads of enterprises, but also by the logistics personnel themselves. For logistics managers, the main parameter of motivation is often efficiency rather than performance. Practical tools for dividing and classifying KPI indicators are based on the well-known management concept of “4E” and look like this.

So how can you evaluate logistics efficiency using KPI indicators? Practice shows that four directions, or stages, of the assessment process can be distinguished:

— internal assessment (analysis of the relative dynamics of key indicators);
— external expert assessment (for example, using a logistics audit);
— benchmarking (with the help of a partner company in the benchmarking procedure);
— open industry standards, reference models and data.

Now let's talk more about these areas of performance assessment. Internal assessment, as I already noted, is widely used by logisticians. Improving the dynamics of logistics indicators, for example, in terms of the level of logistics service provided or the percentage of logistics costs in the cost of production, is an obvious demonstration of increasing the efficiency of the logistics department. The most commonly used practical tool in internal assessment is called “cascading”.

What to do if the existing positive dynamics of logistics indicators still does not lead to the creation of a sustainable competitive advantage and, perhaps, competitors’ logistics are more efficient? In this case, the efficiency analysis is usually decomposed into functional areas of logistics: warehouse, transport and inventory management. A more detailed study of business processes and the search for hidden inefficiencies occurs with the help of second-level KPI indicators, the number of which is not limited to just five or six items. To objectively study the situation and impartial assessment, as my experience shows, it is better to invite external specialist consultants and conduct a so-called “logistics audit” with them. The procedure is especially useful when functional experts give their opinions on individual logistics areas. The role of the logistics manager is to integrate the findings with the existing organizational requirements and constraints.

The diagram shows an example of an expert’s “resume” on the procedure he carried out to assess the effectiveness of a forecasting method used at an enterprise.

Forecasting efficiency is considered to be the ratio of the target indicator for the actual forecasting method to the maximum possible value of the indicator for the considered methods (moving average).

E = 1.55: 1.58 = 98.26%

A logistics audit will undoubtedly provide a significant increase in the efficiency of all logistics processes and will bring the enterprise’s logistics performance indicators to a higher level. But nevertheless, a set of target KPI indicators of “best practice” will not be obtained. Such a set of indicators “for comparison” can be formed as a result of a benchmarking procedure, for example, with a similar enterprise from near or far abroad that is not your direct competitor. From my practice, I can cite the experience of successfully conducting a benchmarking procedure with a Hungarian enterprise. We also contacted companies in Germany and Denmark to benchmark logistics processes. The exchange of information, experience and knowledge with partner enterprises was, of course, mutually beneficial and bilateral. As a result, each of the participants received a clear assessment and comparison of the digital values of performance indicators, parameters of logistics processes and an overall assessment of the effectiveness of logistics as a whole. The methodology of our joint actions reflected the step-by-step scheme for the formation of KPI indicators as a whole.

The Russian company Best Practice together with the Coordination Council for Logistics (Moscow) was engaged in similar activities on an industry scale for third parties. One of the companies where I worked had the opportunity to participate in an inter-industry competition held by these organizations on the best management of warehouse resources. The system of key indicators was based on the best values of the parameters of the warehouse resource management systems of the companies participating in the competition. As a result, each of the competitors was able to evaluate both the effectiveness of their warehouse logistics as a whole, in relation to other companies in the industry, and in terms of individual elements of warehouse organization.

Reference models. Performance assessment can be integrated into an ERP system that has already been implemented or is being implemented at the enterprise. In such well-known products as SAP, Oracle, corporate or reference models of basic business processes have a developed system for assessing the effectiveness of their work.

Returning to the question of the relationship between assessing the efficiency of logistics operations and the motivation of logistics personnel, which is certainly of interest to readers, I would like to present a version of the methodology for forming the material component of motivation using the ideology of KPI indicators (see table).

Thus, motivation is based on a number of indicators of no more than five, so that the material incentive to achieve target indicators is significant for the logistics manager. The algorithm for the process of “weighing” indicators for motivation logically follows from Diagram 4.