Logistics Key Performance Indicators (LKPI)
This comprehensive recommendation defines 6 indicators (EDI Precision / Delivery Accuracy / VendorManagedInventory / Material Handling & Identification / Production Disruptions / Supplier Communication & Cooperation) as well as their ratings.
5 of these indicators are used by at least 2 companies who participated in the work group:
- EDI precision: PSA, Renault
- Delivery Accuracy: PSA, Nissan, Renault
- Material Handling & Identification: Bosch, SNOP, Nissan, Renault
- Production disruptions: Nissan, Renault
- Supplier Communication & Cooperation: Bosch, Nissan
The use of standard indicators of logistics performance will reduce cost and save time:
- for the Suppliers, by harmonising requirements in logistics performance within the industry
- for the Customer, by facilitating the development or the enhancement of Supplier appraisal systems based on standard indicators.
The defined LKPI are complementary to the Global Materials Management/Logistics Evaluation Recommendation (Global MMOG/LE) which was developed jointly between AIAG and Odette:
- Global MMOG/LE supports (auto) evaluation of a plant’s logistics capability
- LKPI measure the effectiveness of the logistics processes between parties