How You Can Measure the Performance of a Distribution Center

SC Events and Real EstateProperty DesignMaterial HandlingIndustryReal Estate

May 11

As part of my research for the Global Logistics Specialist designation from California State University Long Beach, I have learned about certain metrics used by supply chain professionals in order to measure how their operations helping them meet their company's objectives. These metrics are commonly in the form of what are called key performance indicators, or KPIs for short.

For most experts, all KPIs are metrics but not all metrics are KPIs. In order for a metric to be a KPI it must measure how well a company is meeting its objectives. For example, a metric measuring cost of inventory in transit would be a KPI to a company trying to reduce their inventory holding costs.

For logistics professionals, it is beneficial to have awareness of how real estate might impact your company's objectives and, if possible, its KPIs. With an understanding of how the real estate impacts the KPIs, the logistics professional will be able to more accurately determine what type of property will help them achieve their company's objectives.