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Article

EVALUATION AND SELECTION OF KPI IN PROCUREMENT AND DISTRIBUTION LOGISTICS USING SWARA-QFD APPROACH

DOI: 10.7708/ijtte.2021.11(2).07


11 / 2 / 267-279 Pages

Author(s)

Vukašin Pajić - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia -

Milan Andrejić - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia -

Milorad Kilibarda - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia -


Abstract

Efficient procurement is one of the key parameters of a company’s competitiveness. Besides procurement, distribution plays a significant role in competitiveness as well since the quality of this process directly affects customers. For these reasons, it is necessary for logistics companies to monitor and measure the performance of their procurement and distribution. One of the tools they can use on this occasion is the KPIs. In this paper, 15 KPIs of procurement logistics and 12 KPIs of distribution logistics were analyzed in order to determine the 5 most important ones for each process. In the assessment of the significance of the KPI, 10 experts in the field of logistics participated. The results of their assessment were then used in the SWARA method to obtain the weights of each of the KPIs. After determining the weights, the QFD method was applied to determine the priorities of the observed and analyzed KPIs. The results of the application of these methods showed that order to delivery time, cost per shipment, average delivery time, revenue per order and percentage of on-time deliveries stand out as the five most important KPIs in procurement logistics. On the other hand, total distribution cost, on-time shipping ratio, flexibility of distribution, timeliness of goods delivery and profitability by item stand out as the five most important KPIs in distribution logistics.


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Acknowledgements:

This paper was supported by the Ministry of Education, Science and Technological development of the Republic of Serbia, through the project TR 36006.


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