Direct answer. A logistics KPI (Key Performance Indicator) is a numerical measure used to steer and evaluate the efficiency of logistics operations: receiving, storage, order picking, transport. It's used to track a target over time and catch a deviation before it affects the customer or costs.
The main families of logistics KPIs
Logistics KPIs generally fall into several complementary families. Service indicators measure the ability to deliver what was promised: this includes OTIF (On Time In Full) and the service rate. Productivity indicators evaluate operational efficiency, for example the number of lines picked per hour or a warehouse's occupancy rate. Quality indicators track errors and anomalies, such as the picking error rate or shrinkage. Inventory indicators cover turnover rate, stock coverage or the safety-stock level. Finally, cost indicators relate a given expense (transport, handling, storage) to a unit of work (line, parcel, pallet).
In France, logistics tracking also increasingly includes safety and working-conditions indicators: musculoskeletal disorders (MSDs) account for more than 80% of officially recognized occupational illnesses under the general scheme, an issue prompting many warehouses to add an MSD-prevention KPI to their dashboard, alongside service and productivity indicators. Which KPIs to track always depends on company priorities: a site under pressure on customer satisfaction will favor OTIF, while a site under cost pressure will favor productivity and unit costs.
FAQ
What are the most commonly tracked logistics KPIs?
The most common are OTIF and service rate (delivery reliability), inventory turnover and stock coverage (inventory management), picking productivity (lines or parcels per hour) and error rate. The exact choice depends on each company's priorities.
How do you choose your logistics KPIs?
It's best to start from top priorities (customer service, cost, safety) rather than multiplying indicators. A small number of KPIs tracked regularly and tied to corrective actions is generally more effective than an overloaded, underused dashboard.
Does a logistics KPI always have to be financial?
No. Many logistics KPIs are operational (lead time, error rate, turnover) or safety-related (accidents, musculoskeletal disorders) with no direct monetary translation, even though they ultimately affect costs and the warehouse's overall performance, which justifies tracking them on the same footing as financial indicators.
Related terms
OTIF · Service rate · Lead time · Turnover rate · Stock coverage · Shrinkage · ABC / Pareto analysis · Scheduling · Logistics vs. supply chain.
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