4 Logistics Metrics and Performance Free Online FlashCards

How is transportation cost per mile calculated?

Divide total transportation cost by total miles traveled: $\text{cost per mile}=\frac{\text{total transportation cost}}{\text{total miles traveled}}$. Keep cost categories and mileage scope consistent across periods.

How is a carrier on-time rate calculated?

Divide pickups or deliveries completed within the agreed time window by the total pickups or deliveries, then multiply by $100\%$. Specify whether the measure covers pickup, arrival, or both.

What does dock-to-stock cycle time measure?

It is the elapsed time from receipt of a delivery until its goods become available in inventory. Define whether waiting, inspection, and put-away time are included.

How is inventory record accuracy calculated?

Divide inventory records matching physical counts by the records counted, then multiply by $100\%$. Define the counting basis and the tolerance for a match.

How is picking accuracy calculated?

Divide correctly picked order lines by total order lines picked, then multiply by $100\%$. Consider it alongside picking speed and order-cycle time.

What does warehouse space utilization measure?

Divide occupied usable storage locations by total usable storage locations, then multiply by $100\%$. High utilization can constrain access, replenishment, and future capacity.

How is on-time delivery rate calculated?

Divide deliveries arriving on or before the defined promise date by deliveries due in the period, then multiply by $100\%$. State whether the date is customer-requested or company-committed.

What does the delivery in-full rate measure?

Divide orders delivered with all requested items and quantities by orders due, then multiply by $100\%$. Set rules for partial shipments, substitutions, and quantity tolerances.

How is damage-free delivery rate calculated?

Divide deliveries accepted without reported damage by deliveries evaluated, then multiply by $100\%$. Define how and when damage claims are recorded.

What does order fulfillment cycle time measure?

It is elapsed time from the agreed order-start event to the agreed completion event. A customer-facing version may measure from order placement to delivery.

What distinguishes a quantity-based order fill rate?

Divide the quantity shipped immediately from available stock by the quantity ordered, then multiply by $100\%$. Label it as quantity-based; an order-based fill rate counts completely fulfilled orders.

What qualifies an order as perfect?

It is the percentage of orders meeting every defined requirement, commonly including correct items and quantities, on-time delivery, accurate documentation, and undamaged goods.