A frequently cited metric is simply the % of damaged goods. Yet, this deeper metric takes a specific root cause control step. The level this metric undergoes promotes by default higher attention to handling design, goods packaging, and operations.

Number of outstanding maintenance jobs at each supplier

The reliability and performance of a supply chain are only as good as its maintenance of equipment. Here, instead of measuring plans, actions and spare parts availability or speed of repair, there is a strong focus on the number of outstanding maintenance jobs. Care should be taken to the appropriate level of frequency this metric is taken and the actual method. The metric helps identify specific resource levels and can be monitored over time with effective dashboards in real time.

Number of improvement projects

Different than our prior metric of actual projects, here we focus on specific improvement projects. Variations can include the number of open, closed, success projects also. A key and a sometimes overlooked point behind this metric are the focus on WHY the project is deemed an improvement project. Avoid vanity projects to look good which simply add costs and offer low value. So, a high impact high-value project is the path to encourage.

Number of accidents in handling operations

Understanding the safety obligations each step has across the supply chain impacts the wealth fare of its workers, productivity, service level attained and ultimately financial cost. Generating insights to the number of site level accidents is a common metric. Yet, this standard metric is of lower potential value when considering a solutions attitude to safety. Here we identify potential risks and therefore design or procedural change to goods which translates to lower accidents and this improved service levels.

Number of hours lost due to injuries

Already common across the logistics industry is the number of days since the last incident. This metric delves deeper and retains a priority to the wealth fare of the worker and seriousness of injuries. Measuring the actual number of hours highlights the priority you place on safety. Extra Note: As a policy suggestion I advise a business that has had the unfortunate incident of loss of life, should FOREVER include the daily hour level an employee had. This is a sustained reminder of the personal and business legacy to address and never become complacent with injuries.

% of deviations from safety audits

We already have highlighted askew in this list towards safety across the supply chain and its logistics operations. The grounds for these metrics inclusion are to penetrate deeper into performance levels and identify service level and personal risks. With cost levels being a continual focus and the ever closer interaction between automated equipment and personnel, disruption due to safety is a vital management responsibility. Here we focus on the audit levels and plot the trends of safety audit deviations. Setting the frequency of such events is important as is the skills of the actual auditors for consistent measures.

Accidents per 100,000 kilometers