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Please answer original forum with a minimum of 250 words and respond to both students separately with a minimum of 100 words each 

Page 1 Original Forum with references 

Page 2 Alicia response with References 

page 3 Alex response with references 

Original Forum

Part I. What are the various driving forces leading to greater use of KPIs in the logistics environment? Please provide an example of at least two that you have identified.

Part II. End your initial response with a follow-up question for your classmates to address in further the discussion.

Student Response 

Alicia

The various forces leading to greater use of Key Performance Indicators (KPI) in the logistics industry and environment is the ability to measure and track progress and the flexibility of being able to measure and track significant company data in multiple areas. Since the logistic and supply chain industry is a constant growing and ever changing industry, it is not hard to envision that in the past, prior to the sophistication of  technology or there being less complex ways of collecting and storing data, that it was hard to not only keep track of the data but also interpret what the data was saying over a length of time and utilize that information. KPIs along with being accompanied by technology allowed for many success and better understanding of the logistics industry. These driving forces have allowed companies to be able to gain visibility of areas such as finance, operations, customer experience, colleague experience and safety key performances. Another driving force that has aided in the greater use of KPIs in the logistics industry is the ability to be able to make better informed decisions as a company. One might look at the companies KPIs in a certain area and from that data be able to make an impactful decision with facts and data to support that decision making process. Having quality company goals is another driving force that has lead the industry to adopt the use of KPIs at a greater rate, because companies began to recognize that understanding the purpose and benefit of the use of KPIs can make the company goals more attainable and solid as the use of KPIs can provide a strong stance and foundation for the company goals.

Do you think with the complexity of the logistics environment rising, that keeping up with KPIs will become a greater challenge ?

Alex

KPIs are valuable for measuring performance in ways that can be vital for optimizing efficiency and improvement over the course of time. Vital KPIs include shipping time, order accuracy, customer relationship management, warehousing costs, inventory accuracy and inventory turnover. By implementing KPIs as a performance indicator, logistics managers can more effectively identify potential factors undermining performance such as bottlenecks in order fulfillment processes or areas that contribute to cost overruns. KPIs can be folded into a digital system and tracked continuously, so that managers can identify problems and implement changes in real time (Schjott, 2018). Factors that increase dependence on KPIs include improvements to cloud-based computing systems and interfaces that are more user-friendly and connected to automated processes. 

KPIs are directly corelated with areas of efficiency such as load optimization and lead cost providers, so that shipments can be consolidated automatically when appropriate and the correct carrier is always being used. KPIs can be used to evaluate carrier performance and to improve carrier negotiations, so that a logistics solutions provider knows exactly who they are partnering with. Increased global competition has led managers to prioritize the use of KPI scorecards that track important variables such as on-time pickup and delivery, claims as a percentage of spending, and claims as a percentage of total shipments (Schjott, 2018). Managers can identify the specific KPIs that are important to the company and which align with the mission and values of the organization. One example would be a company that is committed to sustainable logistics solutions, in which case managers would be able to identify partners who have parallel strategic goals and a positive track record of performance. Finally, software developers have increased the capacity for KPI dashboards to be crated that are easy to understand and which translate directly into effective results. 

Schjott, L. (2018, August). 6 KPIs every logistics and warehouse manager should know. Parcel Industry. Retrieved from https://parcelindustry.com/article-4837-6-KPIs-Every-Logistics-and-Warehouse-Manager-Should-Know.html