Logistics Network Efficiency
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Category:  
Strategic

Measures the efficiency of the logistics network in delivering goods with minimal costs and time.

What it Measures ?

Assesses cost savings across logistics operations.

Relevant StakeHolders 

Logistics Head, Network Planner

In-depth Use Case / Real-world Example

A company manufacturing televisions calculates Logistics Network Efficiency by evaluating how effectively goods move through its network of warehouses, distribution centers, and transport routes. For example, if the company’s logistics system delivers goods within 5 days with minimal costs, it scores highly on this KPI. Efficient logistics help reduce costs and ensure timely deliveries to customers.

KPI Definition

Business Value

Movement Direction

Sample Formula

Network Cost Reduction Achieved / Total Logistics Spend

Should Aim For
1
2
3
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