Every field of business has specific metrics that measure its success. They are called key performance indicators (KPIs). Without defining and monitoring them, no manager can be able to say if they are making the right decisions. Also, it is impossible to plan for growth, since you don’t know what exactly it means. Logistics KPIs are no different.
Over the years, Logistic Packaging specialists have helped businesses in various sectors improve their logistics KPIs. For new companies and start-ups, we even sat down with their managers and helped them identify relevant KPIs for their specific type of activity and position on the market.
New Challenges Keep Coming, So Logistics KPIs Tracking Is Essential
We never worked under the illusion that things would go back to normal after the global COVID pandemic. But, just like every other manager and CEO, we were not able to predict the economic uncertainties everyone has to face. With a looming economic recession just around the corner, every business is trying to prepare the best they can.
And these unpredictable challenges make logistics KPIs analysis more important than ever. Optimization in the right compartments of your activity means saving money and having a valuable reserve you can count on in difficult times.
For this reason, we will take a detailed look at the key logistics KPIs applicable to businesses operating in most industries:
In the context of logistics KPIs, storage refers to the cost per storage unit. Unfortunately, unless you own all your storage facilities, your company is bound to pay increasingly higher costs for the same available space.
However, this is one of the logistics KPIs that you can optimize by taking several strategic decisions:
- Replacing old packaging materials with space saving solutions, such as foldable large containers and small foldable containers
- Automating warehouse operations with pallet box dischargers, pallet trucks various smart robots
- Making the best use of verticals space with an effective racking design and plastic pallets.
One of the most effective logistics principles applied in the automotive industry is called “just in time”. You can apply it to improve inventory management and optimize this logistics KPI.
This involves creating an extremely efficient supply chain, with the aid of professional packaging materials and automated devices, ensuring that you always have just enough inventory items to satisfy all orders. Thus, you will avoid the two biggest challenges for distribution and warehousing managers:
- Too much money blocked in inventory items – some of which may become obsolete, requiring to be written off
- Being unable to deliver orders on time to customers because some products are not available.
Our logistics experts can help you define the elements of an effective supply chain and reduce the frictions by using professional packaging materials, such as:
- Large rigid containers with label holder for quick product identification and stock taking
- Storage trays offering easy access to small parts or products
- Optional barcode or RFID chip application of delivery boxes and totes.
We now move away from logistics KPIs you can fully control and into the territory where you depend on other business partners. For us, as professional packaging producers, this is where we can show that we keep all the promises we make.
We believe in long term relationships with clients, and always strive to be the strong link in their supply chain. We offer quality at fair prices and constantly invest in R&D to improve our products. Thus, when you perform your analysis for us as packaging suppliers, you will always get a positive result.
Transport is the last of the logistics KPIs and the most problematic. Even the most reputable transportation companies cannot promise zero delays and zero incidents in product delivery. Border check-ups, bad weather, unexpected accidents or driver error can affect your delivery and result in significant loss.
Once again, relying on professional returnable plastic packaging materials may mitigate these losses. Plastic pallets and plastic containers are designed to protect products from various risks, including mechanical shocks, spillage, dust, dirt and other types of contamination.
The Logistic Packaging experts are always ready to help your company improve its logistics KPIs and optimize its operations and costs. Send us an email and let us understand your packaging applications so that we can recommend you the best products!