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KPI Framework Design & Implementation for Logistics Using Balanced Scorecard Method

Developed and implemented a robust KPI framework for the logistics function using the Balanced Scorecard approach, ensuring alignment with strategic goals and enhancing performance visibility, accountability, and continuous improvement

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Project Leadership Highlights

  • Conducted workshops with stakeholders to understand strategic goals, operational challenges, and performance measurement gaps.

  • Defined key logistics KPIs mapped to the Balanced Scorecard categories:

  • Financial: Logistics cost per unit, freight spend vs. budget

  • Customer: OTIF (On Time In Full), Voice of Business

  • Internal Process: Order cycle time, productivity per person, claims ratio

  • Learning & Growth: Training hours per FTE, employee engagement

  • Designed dashboards and reporting cadence to ensure timely review and course correction.

  • Integrated KPI tracking with TMS systems to ensure automated data capture and reporting.

  • Established a performance governance model, linking KPI ownership to individual and team objectives

Key Outcomes & Impact

  • Increased visibility and accountability across logistics operations through structured KPI reporting.

  • Enabled data-driven decision-making, resulting in 30% improvement in logistics cost efficiency.

  • Reduced order cycle time by 20% through targeted interventions informed by KPI trends.

  • Strengthened collaboration between logistics, LSPs, and finance teams through shared metrics.

  • Improved Customer Satisfaction Scores by 25% through analysis of VOB surveys.

  • Built a scalable performance framework adopted across regional teams.

Tools and Methodologies

  • Looker BI

  • TMS/ RMS/ WMS

  • Balanced Score card

  • Mckinsey’s 7-S Change Management Framework

  • Management’s  Engagement

  • Lean/Continuous Improvement principles

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