TIME BASED PERFORMANCE METRICS IN LOGISTICS: A CASE STUDY FROM SAUDI ARABIA

Abstract

This paper aims to equip logistics management with a comprehensive way to evaluate logistics players’ performance including the management itself. This paper presents a systemized flexible mechanism to develop time based logistics performance metrics based on organizations’ logistics network structure. The framework will enhance logisticians and practitioners with decision support system to evaluate the effectiveness of the logistics time based performance. Logistics lead time analysis concept is used to break down the total logistics lead time into time windows/intervals enhanced with predefined control time limits. Time windows are generated by change of player, task, and place over the lead time. The number of metrics equals the number of the time windows. The developed metrics are mainly based on comparing the actual performance against the agreed plan for each time window. Pareto Chart will be used as a prioritization system to determine the poorest logistics performance of each path and each player as well. The proposed time based performance system designed in way to enable decision maker precisely identifies opportunities for improvements hence improve the supply chain performance to reach excellence. Data from a company operating in Saudi Arabia is considered as our main case study to testify the proposed performance system.