The Design And Implement Of Combined Logistic KPI System For D Group

Lean management is an effective way for manufacture to focus more on their corecapability. Improving productivity, decreasing cost become can define whether a companycan survive in competition. Well and fully utilize our source service will contribute toimproving productivity and decreasing cost. From company internal management point ofview, a fair KPI system is very important to audit whether logistic service is corrected usedor not. Meanwhile, a reasonable KPI system can lead and motivate company to improveefficiency via better utilization of logistic.The paper is based on D group current logistic status(complicated KPI caused by differentbusiness scope), with detail analysis of the challenge, obstacles about logistic performance,aiming to design more reasonable and more systematic KPI system to measure logisticperformance. The paper reaches the expectation, the key creative point is designing newKPI system which base on sales revenue, the new KPI is independent from unit limitationwith creating idea as ratio KPI. This new KPI can balance different plants situation withone business group, performing as systematic and logical performance KPI to measureplant’s performance on supply chain and logistic.Meanwhile, during the new KPI system implementation, the writer design new tools toimprove supply chain operation, workout simple but workable method to optimize plant’slogistic capability. For inbound logistic, designed double ABC category method, accordingto material value and cubic meters to define category, then Material Planner can arrangemost optimized order frequency after considering both logistic cost and Inventory CarryingCost. Such optimization was implemented through effective excel tool. For outboundlogistic, designed data base analysis tool of truck utilization monitoring, when enableplanner can monitor truck utilization from effective data analysis. Then Production plannercan arrange better delivery frequency of goods, and find problem through timely datamonitoring, fixing problem on time.