KPI`S ( KEY PERFORMANCE

INDICATOR)

"What gets measured, gets managed"

Nicolás Rubiano Chaves

Administrador de empresas
Msc. Logistics and supply chain management
Programa de Logistica Empresarial
Universidad del Rosario
WHAT IS A CULTURE OF
MEASUREMENT

It is a strategy that seeks to develop in the organization the

ability to evaluate different management areas, in order to
meet the critical points of performance and build work
plans weaknesses, opportunities and strengths.
WHAT TO MEASURE?

They are measured aspects that allow us to evaluate how

well they are doing things, and how efficient the use of
resources to achieve them; and the results of strategies
adopted any management changes.
WHAT ARE THE LOGISTICS
INDICATORS?

Quantitative indicators are those applied to supply

management, including the processes of receiving, storing,
inventory, shipping, distribution, delivery, billing, and
information flows between business partners.

Logistics indicators seek to to evaluate the efficiency and

effectiveness of logistics management and the use of
technology and information management, with the aim of
achieving a permanent control over the operations, have a
monitor compliance with goals and objectives , have
feedback to facilitate the overall improvement of the supply
chain.
WHAT IS BENCHMARKING ?

It is the continuous process of measuring indicators of processes,

products and services from competitors or to those companies
recognized as leaders in order to identify and adopt successful
practices.

Benchmarking processes require changes within the organization.

The information collected should allow identify excellent practices
and see how to adapt them to the company.
THE RIGHT CONCEPT OF BENCHMARKING

Benchmarking it is NOT Benchmarking is

 The best company has a cost 10% lower than

 My competitor has a
cost 10% lower than ours.
 I must reduce my cost by
8% or more.
ours.
 The reasons for these costs are ......
 The steps they followed to get there were
......
 In a period of time ......
 The processes used are ......
 An appropriate goal for our company is ......
 We will achieve this goal through the
following steps ......
Defining Logistics Objectives

 The objectives of logistics, as well as strategies, should provide

support and be consistent with those of the organization, especially
with operations and marketing.

 The process to establish them is iterative and involves all

organizational levels.

 Gopal & Cahill (1999) suggest defining objectives and strategies

overall and then for each of the following areas of logistics: network
configuration, organization and coordination, customer service,
inventory and information technology.
Defining KPI´s

 They are derived from the objectives and strategies.

 Logistics KPIs should relate to the mission, vision, corporate strategy

and competitive factors of the organization.

 Should measure process performance through the value chain (must

measure what adds value)

 They must be associated with the critical success factors: cost,

quality, cycle time, customer response, etc.

 The aggregation levels, interaction and decision-making must be

appropriate for each level of the organization
EJEMPLOS DE OBJETIVOS LOGÍSTICOS
EJEMPLOS DE OBJETIVOS LOGÍSTICOS
EJEMPLOS DE OBJETIVOS LOGÍSTICOS
EJEMPLOS DE OBJETIVOS LOGÍSTICOS
 IMPACT OF LOGISTICS KPIs IN CONTINUOUS IMPROVEMENT

The success of a process of continuous improvement depends largely

on the strength of its feedback process, it means the ability to adjust
the necessary running. This requires projected contrast with the
current progress results.

The feedback process in a process of continuous improvement is

generated from the control function and verification function is divided
into the following:

• Establish performance standards

• Track the current process
• Compare the results with established standards
• If there are variations, it is necessary to determine the causes and
take corrective actions.
A problem well defined, is a problem half solved