A Review and Evaluation of Logistics Performance Measurement Systems

Logistics encompasses a complex set of activities which require a collection of metrics to adequately measure performance. Ideally, the performance metrics used should be selected and maintained as a system, so they complement and support each other and provide the decision makers with a well balanced picture of the logistics process. Often in practice, however, performance measurement systems are not formally managed or evaluated. The result is a performance measurement “system” where the interrelations between the metrics are not known, duplication is frequent, and omission is undetectable. This paper addresses this shortcoming by developing a set of evaluation criteria for logistics performance measurement systems and applying it in two case studies.