10 Benefits of Pick and Pack Warehousing

In the landscape of the Australian business sector, efficient and streamlined logistics play a pivotal role in ensuring success. Pick and pack warehousing is a cornerstone of modern supply chain management because it offers a plethora of benefits for businesses across diverse industries. We take a deep dive into the advantages of pick and pack warehousing in Australia, exploring how this approach can enhance operational efficiency, and how logistics solutions can boost overall business performance.

1: Optimised Inventory Management

One of the primary benefits of pick and pack warehousing is its ability to streamline inventory management. Through advanced technology and efficient systems, businesses can keep track of their stock levels, minimising the chances of overstocking or stockouts. This level of precision is crucial in the Australian market, where fluctuations in demand and supply can be unpredictable.

2: Increased Operational Efficiency

Pick and pack warehousing involves a meticulous process of selecting items from inventory, packing them according to specific orders, and shipping them promptly. The automation of these processes significantly enhances operational efficiency, reducing the time and resources required for each order. With faster order fulfillment, businesses can meet customer expectations, leading to improved customer satisfaction and loyalty.

3: Cost Reduction

By optimising processes and minimising errors, pick and pack warehousing contributes to cost reduction. Automated systems ensure accurate order fulfillment, reducing the likelihood of mistakes that could result in returns or customer dissatisfaction. Additionally, the streamlined workflow and efficient space utilisation in warehouses help in lowering operational costs, making the overall logistics process more cost-effective.

4: Scalability and Flexibility

Australia’s diverse and growing market demands scalable solutions for businesses. Pick and pack warehousing provides the flexibility to scale operations up or down based on seasonal demands or market fluctuations. This adaptability allows businesses to navigate the dynamic market with ease, ensuring that their logistics operations align with changing business requirements.

5: Accurate Fulfillment

Precision in order fulfillment is a key advantage of pick and pack warehousing. Automated systems help minimise picking errors, ensuring that customers receive the correct items in their orders. This accuracy not only reduces the costs associated with returns and replacements but also contributes to a positive brand image.

6: Enhanced Customer Experience

In the e-commerce age where the customer experience is paramount, pick and pack warehousing plays a crucial role. The fast and accurate processing of orders leads to faster delivery times, contributing to an overall positive customer experience. Satisfied customers are more likely to become repeat customers, fostering brand loyalty and potentially, positive word-of-mouth.

7: Real-Time Visibility

Pick and pack warehousing systems often come equipped with advanced tracking and reporting tools. This real-time visibility into the supply chain allows businesses to monitor inventory levels, track order status, and identify areas for improvement. In addition, real-time visibility provided by pick and pack warehousing empowers businesses with actionable insights. Monitoring key performance indicators, inventory levels, and order statuses in real time allows for agile decision making. Businesses can identify potential bottlenecks and optimise processes promptly, which means that they can proactively address challenges. This then enhances overall efficiency, and also supports long-term strategic planning.

8: Compliance with Regulations

Australia has stringent regulations regarding the import and distribution of goods. Pick and pack warehousing systems can be configured to ensure compliance with these regulations, reducing the risk of legal issues and fines. This level of adherence to regulatory requirements is crucial for businesses looking to establish a strong and sustainable presence in the Australian market.

9: Reduced Turnaround Time

In a competitive market like ours, where customers expect quick turnaround times, the efficiency of pick and pack warehousing is invaluable. The streamlined processes enable businesses to fulfill orders promptly, reducing the time it takes for products to reach customers. This not only meets and sometimes exceeds customer expectations but also allows businesses to stay ahead of the competition.

10: Environmental sustainability

As sustainability becomes an increasingly important consideration for businesses, pick and pack warehousing can contribute to environmental goals. Efficient inventory management reduces the need for excess packaging materials and minimises waste. By implementing eco-friendly practices like optimising packing materials, individual companies can contribute to Australia’s commitment to environmental conservation. This will not only resonate with environmentally conscious consumers, but also positions businesses as responsible corporate citizens.

Do You Need Logistics Solutions?

Then elite logistics is the answer. We are experts in logistics solutions from retail transport to pick and pack warehousing. Regardless of the solution, we are proud to offer accuracy and accountability in our operations, by utilising cutting-edge operating systems and integrations. Our warehouses have a 12,000-pallet capacity across Australia, and we would be thrilled to provide your business with a seamless logistics experience.

To discover what solutions we can offer your business, get in touch with us today by calling 1300 652 157. Alternatively, you can fill out our online contact form and we will get back to you.

Store-to-Store Retail Transport Explained: A Comprehensive Guide

The retail landscape in Australia is a vast and multifaceted one, and the behind-the-scenes movement of goods from one store to another is a crucial, yet sometimes overlooked component. For retailers in Australia however, optimising store-to-store retail transport networks is a vital strategic move that directly impacts operational efficiency, and ultimately, the bottom line. This month, we explore the significance of store-to-store transport, some of the challenges it presents, and innovative retail strategies that can streamline this essential aspect of retail logistics.

Store-to-Store Transport: The Hidden Backbone of Retail

Store-to-store transport involves the movement of goods between different retail locations, whether they are within the same city or scattered across Australia. This process is the unseen force that ensures each store remains wells-stocked, with minimal excess inventory, and that they can meet the dynamic demands of consumer preferences.

1: Inventory Balancing: Effective store-to-store transport allows retailers to balance their inventory levels efficiently. This ensures that popular products are readily available at high-demand locations, and allows excess inventory from slower-moving stores to be redistributed, avoiding overstock situations.

2: Flexibility in Merchandising: The ability to transfer merchandise seamlessly between stores provides retailers with the flexibility to adapt to changing market trends and customer requirements. It also enables these retailers to test new products in specific locations, and to quickly respond to fluctuations in demand.

Challenges in Store-to-Store Transport

While it is true that the concept of store-to-store transport holds immense value, its execution comes with a set of challenges that retailers in Australia must navigate.

1: Geographic Distance: Australia’s vast geographic expanse poses unique challenges for retailers, especially when stores are spread across different states. Navigating large distances between stores requires careful and accurate planning in order to optimise transport routes and minimise transport times.

2: Variable Demand: Each different retail location experiences varying levels of demand for specific products. Predicting these fluctuations accurately and ensuring that the right products are in the right place at the right time is a constant challenge for store-to-store logistics and transport.

Streamlining Strategies for Efficiency

In order to overcome the challenges associated with store-to-store transport, retailers are adopting innovative strategies which leverage technology, data analytics, and collaborative approaches.

1: Advanced Inventory Management Systems: Implementing sophisticated inventory management systems allows retailers to track and monitor inventory levels in real-time across all store locations. This is a critical aspect of logistics in retail settings.

A data-driven approach enables more accurate demand forecasting and the timely redistribution of products.

2: Route Optimisation Software: This software plays a crucial role in streamlining store-to-store transport networks. By analysing factors like distance, traffic patterns, and delivery windows, retailers can optimise their transport routes and reduce both time and fuel costs.

3: Collaborative Warehousing: Sharing warehousing space and resources among multiple store locations is a growing trend in retail in Australia. Collaborative warehousing not only optimises factors such as cost, but it also helps to facilitate a seamless flow of goods between stores, thus improving overall supply chain efficiency.

4: Technology Integration: Embracing technology and its advancements is paramount in the modern retail landscape. RFID (Radio-Frequency Identification) devices can be utilised to enhance visibility into the movement of goods, which allows retailers to track inventory with precision and identify any potential issues in real-time.

5: Data-Driven Decision Making: Leveraging data and analytics to make informed decisions about inventory allocation and distribution is a pivotal factor. Retailers can analyse historical sales data, seasonal trends, and demographic information to optimise store-to-store transport strategies.

Store-to-Store Transport: Providing Benefits for Retail Customers

Store-to-Store retail transport is a silent hero in enhancing the overall shopping experience for customers. It ensures that products move seamlessly between different store locations, which directly benefits shoppers in different ways. Firstly, it contributes to a more consistent and reliable inventory across all locations, so that customers can confidently expect to find the product they are seeking stocked on shelves. This helps to eliminate the frustration of encountering an out-of-stock product at their chosen location.

Additionally, store-to-store transport enables retailers to quickly respond to changing and fluctuating patterns of demand, which ensures that popular, trendy, or seasonal items are readily available. This sense of adaptability enhances customer satisfaction because it aligns product availability with customer preferences. Plus, the efficient movement of goods optimises pricing strategies, as retailers can distribute inventory strategically to balance demand. This prevents overstock situations that could result in price markups. Ultimately, store-to-store retail transport harmonises inventory levels, improves product accessibility, and elevates the overall shopping experience for customers.

Do You Need Retail Logistics Solutions in Australia?

Then elite logistics australia can help! If you are in need of retail logistics solutions like store-to-store retail transport, then we can help. Backed by our exceptional industry expertise, we offer a range of logistics services that you will be thrilled with. From retail transport to 3pl warehousing, we can help with your logistics needs.

To organise a quote you can fill out our enquiry form, or alternatively call us at 1300 652 157. We would love to hear from you!

Tips for logistics management during Black Friday sales and the Christmas season

Black Friday sales, Christmas, and the New Year’s holiday period are notoriously the busiest times of the year for most retail businesses in Australia. While this is great for sales, it also means it can be a make-or-break period for companies that rely on the holiday boost. Therefore, business needs to prepare for the influx of extra stock and customers that will occur in the coming months ahead. This includes preplanning and logistics management with freight companies and logistics partners.

Prepare for unexpected delays

Luckily most of the challenging logistics backlogs that began with the Covid-19 pandemic and lockdowns have been resolved with time, and the 2023 season should so far have less hiccups and delays. However, there has of course been further issues that have popped up over the last couple of years including supply chain shocks, floods, and rising prices caused by inflation. It is recommended to prepare in advance to ensure all your stock arrives on shelves on time and integrate a time buffer in case of any unexpected disruptions that may occur during the freight delivery to stores. In most circumstances, it is better to have the stock available a day early, compared to a day late.

Prepare your systems for online orders

The demand for online shopping has rapidly accelerated over the past decade, with a surge each Black Friday sales and Christmas period. It is important to prepare your business website and systems for increased capacity around this sale period – especially if you are planning on having any online flash sales or limited-edition items. It is essential to integrate accurate live business intelligence and freight management software to assess where orders are coming from/ to and whether they will be collected from a store or 3pl warehouse. Customers rely on accurate reporting of stock and items to ensure there are correct numbers available. They don’t want to find out the item they have bought is sold out due to order double-ups or misaligned stock tracking.

Flexible Logistics Management and Solutions

For retail stores with limited space, overstocking can become a huge concern around busy Christmas periods. The store can run out of storage space, leading to hazardous, inconvenient, or expensive alternative solutions. Alternatively, the stock delivered in-store does not end up getting sold as way too much was delivered in the first place. In these circumstances, liaise with your 3pl warehouse and/or retail transport provider to find out if they have an appropriate solution for your business. Whether it is holding excess supply in a retail logistics management warehouse, or ‘drip-feeding’ stock into stores over consecutive days to ensure store space. Partnering with a dedicated logistics management company can help ease some of the problems and stress that occur around the holiday season.

Ensure stock visibility for customers

It is important for internal teams to have visibility over their products with good reporting software. However, it is equally as important for customers to get a good understanding of where their purchases are if they have ordered online. Keep the customer informed and improve satisfaction by providing them with delivery estimates before they purchase the product. Follow this up with live tracking and updated estimates when circumstances change. If the customer opted to pickup in store, it is important for them to know when the stock has arrived and when it is suitable to pick up. Whilst most of these suggestions may seem intuitive, it is important they are automated and integrated into your logistics management with the most up-to-date software, so that they can occur at an increased capacity during busy periods.

Logistics Management Partnerships during Christmas Periods

Are you looking for a logistics management partner to help support your business over the busy Christmas, New Year’s, and Holiday period? Look no further than Elite Logistics Australia. Our team of experts are veterans in the 3pl warehousing and retail transport industry. We pride ourselves on our integration of the best technology solutions to ensure all your stock is tracked and accounted for with pinpoint accuracy.

To find out more about what solutions we offer for your business, get in contact with us today by calling 1300 652 157 or filling out our online contact form.

How Does Logistics Management Work at Elite Logistics Austraila

Elite Logistics Australia is a leading retail transport, 3PL and 4PL logistics management company. Our team utilises state of the art freight management and supply chain technology to streamline the logistics experience for businesses across Australia. The Elite Logistics business can be divided into three divisions: retail transport, 3pl warehousing and logistics solutions. However, our ability to service all 3 areas allows us to provide thorough, flexible solutions catering to your specific business logistics requirements.

Our History of Logistics Management

Elite Logistics Australia began in 2006 under the name ‘elite retail logistics’. It was a state-based operation focusing on retail logistics for the fashion industry. Although originally targeting the Adelaide market, the operation expanded to other states such as Queensland, Western Australia, and Melbourne. In 2020, each state-based operation integrated under the national ‘Elite Logistics Australia’ enterprise. This merge was shortly followed by the acquisition of CS Logistics’ Melbourne warehouse; allowing ELA to branch out into the 3pl warehousing, pick and pack warehousing and logistics solutions divisions.

Retail Transport

Our retail transport services exclusively cater to fashion retail high streets and shopping centres. Elite logistics Australia has an in-house fleet of fully insured transport delivery vehicles in Sydney, Melbourne, Adelaide, Perth, and Brisbane. Transport solutions can consist of store-to-store deliveries, store-to-DFO, DC-to-store and special retail projects. Our in-house retail logistics management services mean you will only have to deal with Elite logistics Australia rather than a variety of carriers. We will set up your business with freight management technology that provides live, real-time freight monitoring, alongside monthly financial reports. Giving you the data to help streamline operations. You can organise custom or daily driver runs to greatly improve efficiency on store-to-store transfers. Our tailored approach can give you the increased capacity and speed of a large-scale carrier, with the specialised and detailed custom capabilities of a smaller local freight fashion delivery specialist.

3PL Warehousing

Elite Logistics’ Melbourne-based 3pl warehouse facility spans 23,500m2 racked, with a 12,000-palette capacity. Located in Truganina, the warehouse is perfectly positioned with practical access to key freight and road infrastructure such as the ring road, west-gate freeway, wharf, and Melbourne airport. Ensuring rapid transport and delivery capabilities within Victoria and around Australia. We service retail, fast-moving consumer goods and light industrial sectors within our 3PL warehousing and retail transport operations. However, we operate on a contract basis and require that businesses must be operating on a minimum of 1000 palettes a year to offer our 3PL warehousing capabilities. E-commerce product fulfilment, inventory management, quality control, stocking, returns management and labelling are all logistics management services integrated with our 3PL warehousing.

Logistics Solutions

Elite Logistics Australia partners with leading transport companies to negotiate an optimised carrier experience for your business. Our goal is to help you cut costs and increase efficiency. Rather than requiring an in-house logistics team, staff dealing with multiple carriers, the stress of missing goods and poor solutions, our logistics solutions division will cover all these issues instead. Our skilled specialists and cutting-edge freight management technology can help rectify any mistakes caused by a carrier and we can take accountability to ensure that problems will be solved, and goods delivered. Our multi-carrier portal will help display B2B and B2C movements in one easily accessible location. Meanwhile, our weekly DIFOTs (Delivered in full on-time reports), operational and financial documents, and benchmarking analysis and reporting can give your business valuable insights into the logistics operations.

Transitioning your logistics management to 3PL.

Rather than diving into the deep end, Elite Logistics offers step-by-step guidance to help transition your business to a 3PL logistics operation. Our team will personally assign your business with an account representative to help introduce all our services, and we will generate a tailored approach that we believe will benefit your business in the most effective manner. After the introduction, your business will be integrated with all our cloud-based freight management software and logistics technology so you can track and manage all your products. However, our thorough reporting and logistics management analysis will continue throughout the entirety of the contract to ensure full accountability and transparency.

Custom Logistics Management

By transferring your in-house logistics to a 3^rd and 4^th party provider such as Elite Logistics you will free up time and costs for your business. Meanwhile, a dedicated logistics company with dedicated resources can provide you with a premium logistics experience. No more dealing with multiple carriers and logistics providers to deal with shipping delays or missed orders. Our team uses cutting-edge technology and integrations to produce the most efficient and smooth warehousing operations for any B2C business.

To find out more about what solutions we offer for your business, get in contact with us today by calling 1300 652 157 or filling out our online contact form.

5 points to look out for when choosing a 3PL logistics provider

Many business owners struggle to juggle between the management of their business’ logistics and the business’ main activities. Often, the best way to tackle the issue is to pick one as a focus and outsource the other. In most situations, outsourcing your logistics operations to a 3pl logistics provider is the best course of action. A strong performing 3PL provider can help you increase efficiency, control costs, and improve customer service. When deciding to outsource some or all of your logistics to a 3PL partner, there are a myriad of factors to consider. Our experts at elite logistics australia have put together 5 essential elements you need to look out for when picking a 3PL provider.

1. Logistics capabilities

Every industry has different fulfilment and distribution workflows and requirements. It is vital that the 3PL company you want to partner with have extensive experience in your specific area. While most 3PL partners cover a range of industries, you should always analyse their core competencies and capabilities to ensure the services offered can satisfy your current and future requirements.

It is also necessary to review the range of offerings provided by the 3PL company you are considering. The more coverage a single 3PL provider can offer, the more seamless your supply chain will be. A 3PL partner that offers omnichannel distribution and fulfilment is often ideal as they will likely be able to handle all aspects of your operational requirements and may be able to customise a solution to meet any specific needs. Selecting a provider that understands the nuances of your supply chain is also key to ensuring they can deliver the best experience to your customers. An effective 3PL company should also practice continuous improvement to suggest and implement best practices across your business operations to help your company stand out from the competition.

2. Good customer service

Like all other businesses, having a strong customer base is key in ensuring business growth and a healthy stream of revenue. When picking a 3PL provider, it is critical to verify that your 3PL partner is committed to prioritizing customer service, responsiveness, and communication. Having a 3PL partner that can support the level of quality your customers are accustomed to regardless of market conditions is important to ensure your brand image is well-maintained. Your 3PL provider should be committed to your growth and have the ability to positively represent your business and match your required level of professionalism.

3. Commitment to technology

Regardless of your business’ current workflow or management system, it is important that your 3PL partner can integrate not only with your existing processes but also any future ones you might have in mind. The right 3PL provider should help you leverage technology to improve and optimise your operations – ultimately improving your entire supply chain.

It is also imperative to look for 3PL partners that can offer custom software solutions and business intelligence solutions beyond the basics. This will offer you data that can provide insight and direction in making informed and timely business decisions to continuously improve business processes. Having a 3PL logistics provider equipped with a knowledgeable IT team also helps in ensuring any IT issues can be easily and quickly fixed.

Using data analytics to understand business movements and trends

4. Safety and security

An often missed characteristic when picking a 3PL provider is considering the company’s safety and security. Due to the ever-changing landscape of safety requirements, you should select a carrier with a strong safety record. Besides all the necessary safety training, compliances and certifications for its employees, a responsible 3PL logistics partner should ensure the protection of your data and business resources.

5. Adaptability and scalability

Adaptability, growth and scalability are critical considerations when choosing a 3PL provider. Ideally, you want to stay with the same provider over a long period of time. You wouldn’t want to pick one that only caters to your current business conditions and then have to switch to another quickly because your business grew faster than expected or your 3PL partner is unable to cope with changes to your business. Having to switch providers multiple times over a few short years can cost your business both time and money. If you’re looking to expand the business to other countries as well, another factor to consider is whether your 3PL provider can ship internationally, efficiently and economically. Hence, picking a partner that can adapt and scale along with your company’s growth is vital.

Are you looking for a 3PL Provider?

At elite logistics australia, we are confident in handling your complete logistics operations from 3PL warehousing to retail transport solutions. We provide end-to-end logistic solutions backed with the latest supply chain technology, a dedicated warehouse team and an in-house freight fleet to ensure a seamless and efficient experience.

Get in touch with our friendly team today by calling us on 1300 652 157 or filling out our contact form to take advantage of our trustable, personalised and comprehensive logistics management service.

from 1pl-5pl: breaking down the types of logistics providers

Offering 3pl logistics and superior 4pl logistics freight management for over 15 years, the team at elite logistics Australia are well versed in the range of logistics services available to assist businesses with elements of their supply chain including distribution, reverse logistics and warehouse storage.

While many recognise the term 3pl logistics or third party logistics, there are also other logistics management services to explore such as 1pl, 2pl, 4pl and 5pl that may be better suited for your business. Before outsourcing the freight of your products and reverse logistics to the experts in logistics and warehousing, exploring the different types of logistics will allow you to better tailor a seamless transport and storage solution for your business.

1pl: first party logistics provider

The simplest of the logistics systems, first party logistics involves only two parties with the manufacturer or distributor shipping the goods directly to the retailer or customer. This means that there are no additional businesses involved in the shipment of goods to the end destination and is best suited for smaller businesses and manufacturers.

However, once the need for freight and storage of goods increases and requires additional processing time for the employees of your business, it may be best to employ the help of trusted professionals and logistics specialists to manage the freight process.

2pl: second party logistics provider

Second party logistics involves an additional business offering the transportation of the goods from the supplier to the end destination such as the customer or retail outlet. These carrier businesses can use any kind of transportation, such as rail, road, sea or air, but they simply specialise in the movement of goods from one destination to another. As an example, it could be an airline that transports air freight internationally.

3pl: third party logistics provider

There is a range of services that fall under 3pl and a great 3pl provider will offer a blend of these services to maximise your business’ freight and storage. This can include warehousing, inventory management, pick and pack services, logistics software, and returns management while also offering a trusted in-house fleet of trucks. A major benefit of 3pl providers is the ability to also scale these services to expand business capabilities during busier periods, rather than needlessly buying assets for a business that are only needed seasonally.

As expert 3pl specialists, our team is the perfect guide to 3pl services. elite logistics Australia offer packages that blend our range of trusted couriers and scalable 3pl warehousing solutions with our integrable digital solutions that offer real-time freight updates and data.

4pl: fourth party logistics provider

Fourth party logistics differ from third party logistics as these providers manage the entire supply chain and tailor a logistics strategy for your business. The focus of a 4pl company is to optimise the entire logistics service, rather than improve one component.

As an adviser and overseer, 4pl providers measure the current key performance indicators of the logistics team, including any 3pl providers, and provide any recommendations to improve the efficiency of the logistics of the business. By offering project management of the entire logistics service, the 4pl provider acts as a single point of contact for the business regarding all logistics strategies and analytics for an additional level of communication and efficiency. An example of a 4pl logistics service provider is our logistics solutions team here at elite logistics australia

5pl: fifth party logistics provider

A new addition to the logistics industry, a 5pl provider manages a supply chain network comprised of multiple supply chains with appropriate technologies across the whole supply chain network and no limit to the number of suppliers involved.

A 5pl business manages multiple 3pl and 4pl services for its clients to create this intricate supply network, all supported by the latest information technology systems and e-commerce tools. This logistics service is best suited to large retailers that need a comprehensive service across multiple locations with multiple outsourced providers.

complete end-to-end logistics solutions

At elite logistics Australia, we specialise in providing 3pl and 4pl logistics packages for all your freight management needs and logistics goals. From 3PL warehousing to retail transport solutions, 4pl freight management we provide end-to-end logistics services across Australia, with a state-of-the-art 3pl warehouse in Victoria. Backed with the latest supply chain technology, a dedicated team, streamlined pick and pack procedures and an in-house freight fleet, our services are second to none.

Get in touch with our team today by calling 1300 652 157 or completing our online contact form.

finding the right KPI’s for your 3pl logistics operation

Managing your 3pl logistics operation is a crucial step in any business’ supply chain – but how do you know if your current strategy is maximising your business’ potential? If you’re wondering whether your processes require improvements, then having key performance indicators (KPIs) would be a great place to start. Our elite team of specialists at elite logistics Australia can guide you through finding the right KPIs for your logistics operation and answering all the questions that can accelerate your business.

what are KPI’s and how can they help?

Key performance indicators (KPIs) are a set of quantifiable measurements that help gauge your business’ performance over time to assist with strategic and operational improvements.

As logistics covers an end-to-end omnichannel process, having a natural workflow that complements all stages is crucial. Establishing KPIs for your logistics management can help your business break down each stage of the process into measurable data. This means you can continuously evaluate your business’ activity against benchmarks to identify weaknesses and opportunities. With the right data collected based on KPIs, businesses can also benefit from logistics analytics solutions and business intelligence tools to ensure long-term success.

how to set up logistics KPI’s

When it comes to setting up KPIs, a simple approach can help in identifying the necessary KPIs for your business. The quick and simple step-by-step below is a good way to start:

Define your company’s goals. A well-established goal-setting tool you can use is SMART – specific, measurable, achievable, relevant, and timely. Defining these parameters can ensure your objectives are attainable within a certain time frame.
Once goals are set, use them to identify the information you need from KPIs. For example, if your goal is to increase days for orders to be despatched, you can use this to identify the basis of your KPIs such as how often customers question wait times.
With these questions in mind, you can then break KPIs out by their stage within the supply chain. For each stage, aim to have a few distinct KPIs that can help reveal how well the business is functioning in that area.

examples of KPI’s for each stage of logistics

When measuring the effectiveness and cost of your supply chain, you will need to set up and monitor KPIs that give visibility of cross-functional activity along with those applicable to individual supply chain components.

Generally, the following areas are those where KPIs are necessary and examples of KPIs you can measure:

Order management:
- KPIs here should focus on orders and returns processing such as Shipping Time, Perfect Order (degree of accuracy to which customers’ requirements are met), and Delivered In-Full On-Time (DIFOT).
Inventory management
- This area measures the effectiveness of inventory purchasing and may also include cash flow such as Customer Backorder Rates, Inventory Turnover, and Inventory to Sales Ratios.
Supply management
- Supply KPIs are metrics that focus on how well final goods are moving through the supply chain. Examples are, Order Cycle Time, Capacity/Resource Utilization, and Productivity.
Warehousing
- This area helps with product flow from DC’s to customers being either B2B or B2C. KPIs can include Warehousing Costs and Average units picked per day
Transportation
- Management of this area governs the Transportation of goods. Example KPIs are Delivery Time, Average Days Late and Transportation Costs.

Ultimately, the right KPIs for you must be aligned with the goals and requirements of your business. There is no one-size-fits-all list of KPIs that will definitely work for your business. Having the right people evaluate your current logistics processes and your unique business requirements can help kickstart the process of finding the right KPIs for your logistics operation.

Delivery of goods from distributors to customers

tips on finding the right KPI’s

When it comes to picking the right set of KPIs suitable for your business, there are a few dos and don’ts you should be mindful of.

Dos:

Be realistic. KPIs should comprise a handful of metrics that your team can realistically measure, monitor, and react to continuously.
Make sure each KPI has an “owner”, whether that is an individual or a team. This ensures those responsible for achieving the goal are fully aware of what is expected of them.

Don’ts:

Do not have too many! Having too many KPIs and items to measure can become overwhelming and difficult to measure.
Do not overcomplicate your KPIs. The end goal of each KPI should be easy to understand and should not contradict or undermine another KPI.

do you need assistance in getting your KPI’s right?

At elite logistics Australia, our friendly team of professionals can help you and your business with your logistics operation needs such as selecting the right KPIs for the right levels of management, setting the most suitable performance targets to use with those KPIs and assessing the current performance of your logistics operations.

If you’re looking for some guidance in all things logistics, get in touch now to find out more about our extensive range of services and solutions through our enquiry form or call 1300 652 157.