What Are Logistics Indicators, or KPIs, and What Are They Used for?

Jul 29, 2019 12:00:00 AM

What Are Logistics Indicators, or KPIs, and What Are They Used for?


One of the fundamental aspects for any logistics company is to be able to optimize the processes thus saving time, costs resulting in a better service for the clients. How can logistics companies achieve this? Companies can achieve this through the synchronization of all participants and real-time communication thanks to platforms such as CarSync Fleet.

To make good decision and measure the processes it is very useful to have a fleet management platform that has real-time information and data of each operation. Only then, a logistics company can measure its activity and detect possible failures and correct them in the shortest possible time.

Types of KPIs in logistics

There are certain indicators of logistics management (known as KPIs) that allow to increase competitiveness, minimize errors, increase quality and reduce expenses while increasing productivity and improving performance.

We can classify the most relevant KPIs into indicators of production, storage and inventory, supply chain management and procurement, transport and distribution, and delivery and customer service.

Each logistic indicator receives and absorbs information and data that a company must collect and analyze. Logistics companies must compare these data internally and their evolution over time as well as with average data of the sector.What are logistics indicators for?This information and its analysis will allow companies to continuously improve the different processes carried out. The main goal is to minimize costs and maximize quality in each of the processes using this information.

Depending on the competitive advantage a company wants to achieve, (for example, offer lower costs or a better service) a logistics strategy must be designed one way or another.

Something to keep in mind today is that customers, whether they are companies or the end user, increasingly appreciate the agility and ease of service. For this reason, a company’s objectives should be focused on improving in this area when developing a logistics strategy. How can I obtain more information about my logistics company?The best way to obtain a large amount of information and valuable data from a logistics company is digitize the processes. Which means, slowly transform the analogical processes (slower and trickier) towards digitized processes.

Being able to transform a traditional company into a digitized company is key to improve competitiveness and grow faster and easier.

To help companies achieve this, Location World has designed CarSync Fleet, a service for companies that have vehicle fleets. This service is the market leader. It collects a large amount of information about vehicle fleet and trips taken, and it displays it on a management platform. The platform can be accessed through any device such a laptop, tablet or smartphone. In this platform one can view information such as:

  • Real-time location of all vehicles 
  • Alerts and customized reminders
  • Online route tracking
  • Trip history
  • Administration of virtual zones (geo-fences) with alerts of entry and exit to zones.
  • Current state of each vehicle
  • Performance per vehicle
  • Fuel consumption report, speeding reports, among others

After obtaining a large amount of valuable information about the fleet, the company can analyze it and achieve benefits such as:

  • Reduced freight costs (up to 20%)
  • Risk of accident reduction by 30%
  • Lower fuel costs (up to 15%)
  • Reduction of idle time and non-productive times by 25%
  • Lower maintenance costs (-15%)
  • Route and trip optimization by more than 30%
  • Customer satisfaction increase by 25%