Formation of Branch Rating for a Logistics Company Based on Key Performance Indicators
MAGAZINE №2(85) April 2018
AUTHORS
Sotov V.V. - Head of Corporate Programs and Rating Department, Department of Logistics and Planning, JSC Freight One (Moscow, Russia)
CATEGORY Controlling Logistic service providers
ABSTRACT
This article determines the system of rating branches for a logistics company based on key performance indicators.
The purpose of rating is to increase the efficiency of branches for a logistics company.
The rating is used as a comparative performance evaluation of the effectiveness of branch units. The ranking is considered through a point system and based on the level of key performance indicators.
The rating is aimed to solve the following problems:
- to develop measures to meet the targets;
- to use the best practices of some branches;
- to improve the execution of key performance indicators alongside with planning system improvement;
- to develop technologies aimed at reducing costs by making optimal decisions;
- to improve the quality of service;
- to motivate and create a competitive environment between branches.
The rating determines both quantitative and qualitative comparative evaluation in order to implement key performance indicator system. Qualitative assessment takes into account priority indicators and the efforts of the branches in their implementation.
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