What metrics do you use to measure the performance of logistics operations?

Your Answer

How To Answer This Question?

When answering this question, highlight your knowledge of various logistics KPIs and explain how they can be used to measure and improve performance. Common metrics include:

1. On-Time Delivery (OTD): Measures the percentage of orders delivered on time. High OTD rates indicate efficient operations.
2. Order Accuracy: Tracks the percentage of orders delivered without errors. High accuracy reduces returns and increases customer satisfaction.
3. Inventory Turnover: Indicates how often inventory is sold and replaced over a period. Higher turnover rates suggest efficient inventory management.
4. Transportation Cost per Unit: Measures the cost of transportation per unit shipped. Lower costs indicate more efficient logistics operations.
5. Warehouse Efficiency: Can be measured by metrics such as order picking accuracy and time taken to process orders.
6. Lead Time: The time taken from order placement to delivery. Shorter lead times improve customer satisfaction and reduce holding costs.

Provide examples from your past experience where you used these metrics to identify issues and implement improvements. For instance, you might discuss how you reduced transportation costs by optimizing delivery routes or improved order accuracy by implementing a new inventory management system.