General IntroductionKPI, or key performance indicators help organizations achieve organizational goals through the definition and measurement of progress.☞The key indicators are agreed upon by an organization and are indicators which can be measured that will reflect success factors.☞The KPI selected must reflect the organization's goals, they must be key to its success, and they must be measurable.☞Key performance indicators usually are long-term considerations for an organization.A successful logistics park should be efficient, cost-effective, (reduce costs, improve productivity and quality), reach company’s internal targets & service levels and exceed customers’ expectation.3PL’s KPI system includes 5 partsKPI for Warehouse OperationW/H operation is the basic function of a logistics park. We suggest following performances should be measured:1.Rate of Stock Safety2.Rate of Monthly Stock-taking Accuracy3.Rate of Outbound Accuracy4.Rate of Ready for Shipment1.Rate of Stock Safety :It’s a measurement for safety of cargos in stock in a certain period. The figure shows whether there’s any damage or loss of cargos in stock.Rate of Stock Safety = Stock Safety Value / Total Stock V alue * 100%- Target should be 100 %2.Rate of Stock-taking Accuracy :It’s a measurement for stock - taking accuracy in a certain period. The figure shows whether there’s any discrepancy during stock-taking.Stock-taking Accuracy Rate = Stock Accurate V alue / Total Stock-taking Value- Target should be higher than 99.5%3.Rate of Ready for Shipment:It’s a measurement for W/H outbound response efficiency in a certain period. When W/H receives customers’ order, the shipment should be picked & packed in time and ready for shipment. The figure shows whether there’s any delay.Rate of Ready for Shipment = Orders picked & packed in time / Total Orders- Target should be 100%4.Rate of Outbound Accuracy :It’s a measurement for the rate of W/H staffs’ outbound operation accord with cu stomer orders in a certain period. The figure shows whether there’s any wrong outbound.Outbound Accuracy Rate = 1 – Wrong Outbound No. / Total Outbound No.- Target should be 100%Besides of above, we strongly recommend China Gold monitor these indicators. They also show the efficiency of a W/H :☞ABC classification of articles (according to picks)☞Number of processed orders per hour (efficiency comparison)☞Orders per person per day (efficiency comparison)☞Order processing time☞Warehouse fill rate (number of rented pallet places / total pallet places)KPI of Transportation OperationTransportation operation is a key function of Logistics Park. We suggest following performances should be measured:1.Rate of Planned Shipment2.Rate of On Time Dispatch3.Rate of Dispatched Cargos in Good Condition4.Rate of Shipment Track & Trace1.Rate of Planned Shipment:It’s a measurement for the rate of planned orders with total orders. With this figure, 3PL can monitor customers’ order habit, adjust relative arrangement for unplanned order and avoid emergent dispatc h failure.Rate of Planned Shipment = Planned Orders / Total Orders- There’s no target for this rate2.Rate of On Time Dispatch:It’s a measurement for the rate of on time dispatch with total orders. The figure shows whether there’s any shipment delay.Rate of On Time Dispatch = On Time Dispatch orders / total orders- Target should be higher than 99%3.Rate of Dispatched Cargos in Good Condition:It’s a measurement for the rate of cargos condition. The figure shows whether there’s any damage or loss during transportation.Rate of Dispatched Cargos in Good Condition = Value of dispatched Cargos in Good Condition / Total value to dispatched Cargos- Target should be 100 %4.Rate of Shipment Track & TraceIt’s a measurement for the rate s of Shipment have been tracked & traced. After the shipment out-going, 3PL should track and trace all in-transit shipments till customer sign off. The information should feedback to customer in time. The figure shows whether there’s any un-clear case.Rate of Shipment Track & Trace = Shipments Tracked & Traced / Total shipments- Target should be 100 %KPI of Customer Relationship ManagementCustomer Relationship Management is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. We suggest following indicators should be measured:1.No. of customers per warehouse2.No. of rented m² per customer3.Revenue per customer- There’s no target for these ratesKPI of Customer ServiceGood customer service could help retain existing customers and discover new ones, We suggest following performances should be measured:1.Rate of Customer Complaint2.Customer Complaint Handling Time3.Rate of POD Return In Time1.Rate of Customer ComplaintIt’s a measurement for the rate of dispatch fail to meet customer’s requirement. The figure shows whether there’s any complaint from customer.Rate of Customer Complaint = Orders of Customer Complained / Total Orders- Target should be less than 0.5% or less than 3 cases / per month 2.Customer Complaint Handling TimeIt’s a measurement for Customer Complaint Handling Time. The figure shows whether there’s any delay when handling customer’s complaint.- Target should be within 2 hrs 3.Rate of POD Return In TimeIt’s a measurement for the rate of dispatched shipments’ POD return to customer site in time. The figure shows whether there’s any delay to return POD to customer, usually on monthly or weekly basis per customers’ requirement.Rate of POD Return in Time = No. of POD Returned in Time / Total Orders- Target should be higher than 98% KPI of Financial IndicatorFinance performance is the most important indicators to monitor actual and budgeted performance, highlighting business opportunities and problems to management. We suggest following performances should be measured:1.Rate of 3PL Profitable2.Rate of Damage compensation1.Rate of 3PL ProfitableIt’s a measurement for the rate of 3PL’s profit, The figure shows the operation’s profit margin.Rate of 3PL Profitable = (Revenue – Cost) / Revenue- Target should be higher than 15% 2.Rate of Damage / Loss CompensationIt’s a measurement for the rate of 3PL’s damage or loss compensation to customer due to 3PL’s fault. The figure shows whether there’s any compensation due to 3PL’s fault.Rate of Damage / Loss Compensation = Compensation value / Total Revenue- Target should be less than 0.5% 100% is the aim of every KPI, but this is, even in best organization almost impossible.Quarterly KPI review is an approach to improve service level constantly to these ideal figures.。