The Basics of Delivery KPI

Whether you are managing a certain business, or you are the owner of the business yourself, you will surely have a lot of factors to keep attentive eyes on. Yes, each and every factor should be eyed very attentively, to ensure the overall success of the business. You may think that the delivery system that your business uses is not one of these factors, but this actually is. Picture this scene: you have a lot of customers making a lot of product orders from your company.

On the production side, you are able to produce the needed amount of products way before the deadline, which is quite positive because you and your workers have beat the deadline imposed by your customers or clients. But then again, what good is beating the deadline when your delivery system is, well, incompetent as of the moment? Let us say that all of your delivery vehicles are being used to dispatch so many orders all over the country. What would then happen to the orders that need to be shipped this very day? Talk about the efforts of beating the deadline going down the drain! There is then a very strong need to evaluate the delivery system of the business, and delivery KPI or delivery key performance indicators are very much needed here.

Delivery KPI actually pertains to the indicators specially designed to help any existing company analyze and evaluate the delivery system utilized by the company. Manufacturing, distribution, delivery, as well as customer satisfaction are the basic factors entailed in the establishment of appropriate delivery KPI.

When choosing which delivery KPI to utilize, you will have to understand that the KPI a certain company makes use of are not necessarily the same as the ones being used by another company. The simple reason behind this inevitable fact is that companies have different goals and objectives upon the implementation of the delivery system that they make use. But for the most part, there are actually common KPI that are being used by the lot of companies. These include on-time pickups, claims percentage for freight costs, inventory months of supply, defects per million opportunities, customer ordered promised cycle time, on-time line accounts, and transit time. However, there are some companies that would choose not to incorporate all of these indicators in their system. Rather, they would just choose the ones that work well for them.

When you have the appropriate delivery metric system implemented in your company’s framework, complete with the appropriate delivery KPI to guide you along the way, you will surely notice significant improvement in the very system used by your company. On-time deliveries of your supplies and products would become significantly noticeable. In addition, where on-time deliveries are concerned, the next logical step could only be customer satisfaction.

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