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