Volume List  / Volume 11 (4)

Article

INFLUENCE OF KPI OF LOGISTICS PROCESSES ON LOGISTICS COSTS

DOI: 10.7708/ijtte2021.11(4).09


11 / 4 / 613 - 628 Pages

Author(s)

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

Gordana Radivojević - 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

Logistics processes due to their complexity in terms of a large number of activities and participants are cost generators. For this reason, many logistics companies plan and control the implementation of these processes in order to reduce costs. One of the tools used on this occasion is the key performance indicators (KPI) that are introduced, measured and monitored by logistics subsystems. The aim of this paper is to determine which KPIs are used in the ordering, warehouse and transport subsystems, as well as the impact of these KPIs on logistics costs. Based on a review of the literature and the most commonly used KPIs in logistics subsystems (ordering, warehouse, transport), hypotheses were developed and then tested using linear regression. In order to determine the impact of KPI of logistics processes on logistics costs, a survey was developed for logistics professionals in Serbia and sent to 50 addresses, of which 35 answers were valid.


Download Article

Number of downloads: 26


Acknowledgements:

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


References:

Andrejić, M.; Pajić, V.; Kilibarda, M. 2020. Stress and communication as quality indicators of a working environment in logistics companies: A case study in the logistics sector in Serbia, International Journal for Traffic and Transport Engineering (IJTTE) 10(3): 309-322.

 

Apsalons, R.; Gromov, G. 2017. Methodology of evaluation of the impact of picking area location on the total costs of warehouse, Transport and Telecommunication 18(4): 332-344.

 

Conveyco. 2016. Top order fulfillment: Key Performance Indicators. Available from Internet: cdn2.hubspot.net/hubfs/2623156/Content/top-order-fulfillment-kpis-conveyco.pdf.

 

DHL. 2015. Vision picking: Driving innovation for modern supply chains. Available from Internet: www.dhl.com/content/dam/downloads/g0/logistics/case_studies/sc_vision-picking_flyer_en.pdf.

 

DHL. 2019. DHL Supply chain deoploys latest version of smart glasses worldwide. Available from Internet: www.dhl.com/global-en/home/press/press-archive/2019/dhl-supply-chain-deploys-latest-version-of-smart-glasses-worldwide.html.

 

Driscoll, M. 2016. Cutting the costs of sales order processing. Available from Internet: cloud.esker.com.

 

Dukic, G.; Oluic, C. 2007. Order-picking methods: improving order-picking efficiency, International Journal of Logistics Systems and Management 3(4): 451-460.

 

Frazelle, E.H. 2002. World-Class Warehousing and Material Handling. McGraw-Hill Book Company. 56 p.

 

Germann, R. 2017. How Damaged product impacts Your Profitability, White Paper. 3 p. Available from Internet: www.rapidpackaging.com/wp-content/uploads/2017/05/How-Damaged-Product-Impacts-Your-Profitability-Rapid-Packaging.pdf.

 

Gozacan, N.; Lafci, C. 2020. Evaluation of Key Performance Indicators of Logistics Firms, Logistics & Sustainable Transport 11(1): 24-32.

 

Hair, J.; Blac, W.; Babin, B.; Anderson, R.; Tatham, R. 2006. Multivariate Data Analysis. Upper Saddle River, NJ: Pearson Prentice Hall. 31 p.

 

Helmy, K.A.; ElMokadem, M.Y.; el Bary, A.A.; El-Sayeh, M. 2018. The Impact of Logistics Performance on Competitive Advantage: The Case of Freight Transportation in Egypt, Journal of WEI Business and Economics 7(1): 33-47.

 

Ishfaq, R.; Narayanan, A. 2018. Incorporating Order-Fulfillment Flexibility in Automotive Supply Chain through Vehicle Trades, Decision Sciences 50(1): 84-117.

 

Jakara, M.; Pašagić Škrinjar, J.; Brnjac, N. 2019. Vehicle routing problem – case study on logistics company in Croatia, International Journal for Traffic and Transport Engineering (IJTTE) 9(4): 456-470.

 

Kryvoruchko, O.; Shynkarenko, V.; Popova, N. 2018. Quality Management of Transport Services: Concept, System Approach, Models of Implementation, International Journal of Engineering & Technology 7(4.3): 472-476.

 

Kusrini, E.; Novendri, F.; Helia, V.N. 2018. Determining key performance indicators for warehouse performance measurement – a case study in construction materials warehouse, MATEC Web of Conferences 154(5-6): 1-4.

 

Li, Z.; Choi, S. 2017. Impacts of Order Cycle Time on the Bullwhip Effect: A Numerical Study, Journal of Management Policies and Practices 5(2): 5-16.

 

Mensak, C. 2019. E-commerce returns management: the impact of order errors and returns on your customers. Available from Internet: www.sana-commerce.com/blog/e-commerce-returns-management-the-impact-of-order-errors-and-returns-on-your-customers.

 

Mostert, M.; Limbourg, S. 2016. External Costs as Competitiveness Factors for Freight Transport – A State of the Art, Transport Reviews 36(6): 1-21.

 

Mungwattana, A.; Soonpracha, K.; Janssens, G.K. 2019. A real-world case study of a vehicle routing problem under uncertain demand, International Journal for Traffic and Transport Engineering (IJTTE) 9(1): 101-117.

 

Musau, E.G.; Namusonge, G.; Makokha, E.N.; Ngeno, J. 2017. The Effect of Transport Management on Organizational Performance Among Textile Manufacturing Firms in Kenya, International Journal of Academic Research in Business and Social Sciences 7(11): 1015-1031.

 

Ponboon, S.; Qureshi, A.G.; Taniguchi, E. 2015. Evalutation of cost structure and impact of parameters in location-routing problem with time windows, Transportation Research Procedia 12: 213-226.

 

Šimkova, I.; Konecny, V.; Liščak, Š.; Stopka, O. 2015. Measuring the quality impacts on the performance in transport company, Transport Problems 10(3): 113-124.

 

Susanto, T.; Djamaris, A.RA.; Azkia, N. 2016. Process Analysis on Order Processing Function to Reduce Order Processing Time: Indonesian Context, International Journal of Research in Management & Technology 6(3): 1-14.

 

Swanson, D. 2016. Transportation price benchmarking: implications for firm performance, Benchmarking: An International Journal 23(4): 1015-1026.

 

Uthayakumar, R.; Rameswari, M. 2012. An integrated inventory model for a single vendor and single buyer with order-processing cost reduction and process mean, International Journal of Production Research 50(11): 2910-2924.

 

Woo, Y.Y.; Hsu, S.L.; Wu, S. 2000. Order processing cost reduction in a joint vendor-buyer inventory system via the application of information technology, The Engineering Economist: A Journal Devoted to the Problems of Capital Investment 45(4): 350-365.

 

Zimon, D. 2015. The impact of the quality management system for the improvement of warehousing processes. In Proceedings of the 9th International Quality Conference, 43-47.