Key Performance Indicators (KPI) for Carriers and LSPs

This document provides common definitions of standardized key performance indicators to measure logistics performance of Carriers & Logistics Service Providers (LSPs).

To avoid each party creating their own Logistics Key Performance Indicators, Odette’s Logistics Functional Committee identified the need to develop common KPIs. A Logistics Key Performance Indicators Project Group was formed for this purpose. The group’s mission was to define and promote common indicators and a common understanding between the parties in line with the Global Carrier and LSP Evaluation recommendation. The overall objective is to increase performance and decrease costs in the Supply Chain.

This recommendation for Carriers & LSPs complements an already existing recommendation from Odette and AIAG regarding the use of KPIs between Material Suppliers and OEMs (KPI for GMML), published in December 2006.

Each indicator defined in the KPI for GMML recommendation is applicable for LSPs and only sub criteria on Delivery documents (“Parts delivered without Delivery note or ASN” and “Specific delivery documents missing”) are applicable for carriers.

Using standard KPIs for logistics performance for all parties will mean a reduction in costs and an increased understanding of responsibilities.

The KPIs defined in this document are complementary to the Global Carrier and LSP Evaluation Tool, and measure the effectiveness of the logistics processes between parties.

Each company may use its own unique performance measurement system; however, the standard indicators specified in this recommendation should form the basis of those performance systems. The parties may require additional KPIs.

An Agreement between the parties should be in place before this recommendation is deployed, as the KPIs should be used to measure the compliance of the Agreement.

The scope of this document covers supply chain management processes between Carriers, LSPs, Material Suppliers and OEMs. The recommendation does not include internal logistics performance at Material Suppliers and OEMs.

Definitions of terms used in this document can be found in the Odette Glossary and Global Carrier & LSP Evaluation Tool.