KPI (Key Performance Indicators)

​​​​​​​​​​​​1. Core Functions and Responsibilities

Our department's mandate encompasses a wide array of critical functions:

• Inbound Logistics: Management and coordination of raw material receipt for all production plants, including chips, ice cream, and chocolate.

• Outbound Logistics: Distribution and delivery of finished goods to sales channels and customers.

• Storage Management: Operation of storage facilities for both raw materials and finished goods, with a specialized focus on food items and adherence to First-In, First-Out (FIFO) principles.

• Supply Chain Management: End-to-end oversight and optimization of the supply chain to ensure seamless flow and cost-effectiveness.

• Warehouse Management System (WMS) Operation: Utilization and optimization of the WMS for real-time inventory tracking, location management, and operational efficiency.

• Advanced Ordering & Communication Systems: Development and maintenance of dedicated mobile applications for plants and sales teams to facilitate ordering, communication, and data sharing.

• E-Services Provision: Empowerment of all internal departments through various digital services and platforms.

 

2. Contribution to Key Performance Indicators (KPIs)

Our department directly influences and drives performance across several critical KPIs:

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2.1 Logistics and Supply Chain Efficiency

• On-Time Delivery Rate (OTD): We are directly responsible for ensuring raw materials reach production plants (chips, ice cream, chocolate) on schedule to prevent production stoppages. Similarly, we manage the timely dispatch and delivery of finished goods. Our advanced ordering and communication systems enhance coordination, significantly improving OTD for both inbound and outbound movements.

• Transportation Cost Per Unit: Through optimized routing, load consolidation, and efficient carrier management, we aim to reduce logistics costs, contributing directly to the profitability of each product line.

• Order Fulfillment Cycle Time: From receiving an order (raw material request or finished goods dispatch) to its successful delivery, our streamlined processes, supported by the WMS and communication apps, reduce overall cycle time.

• Supplier Lead Time Variability: By maintaining strong communication channels and leveraging real-time data, we actively manage and reduce the variability in raw material supplier lead times, ensuring a stable production schedule.

• Number of Production Interruptions Due to Material Shortage: Our proactive supply chain management and efficient inbound logistics are crucial in minimizing or eliminating production downtime caused by a lack of raw materials, directly impacting plant output and revenue.

2.2 Inventory Management and Storage Optimization

• Inventory Accuracy Rate: The WMS, managed by our department, is fundamental to achieving high inventory accuracy for both raw materials and finished goods. Real-time stock status updates prevent discrepancies and improve planning.

• Inventory Turnover Rate: By applying FIFO principles for food items and optimizing storage layouts, we contribute to a healthy inventory turnover, reducing holding costs and minimizing spoilage/obsolescence, particularly for perishable goods.

• Warehouse Space Utilization: Strategic storage planning and efficient use of the WMS enable us to maximize warehouse capacity, deferring the need for additional storage space and reducing operational overheads.

• Damage/Spoilage Rate: Our adherence to proper handling procedures, storage conditions (especially for food items), and efficient inventory rotation (FIFO) directly minimizes product damage and spoilage, preserving product quality and reducing waste.

2.3 Operational Excellence and Digital Transformation

• System Uptime and Availability (WMS & Apps): We ensure the continuous operation and availability of the WMS and dedicated ordering/communication apps, which are vital for uninterrupted operational workflow across plants and sales teams.

• Data Accuracy and Reporting Timeliness: Our commitment to real-time data sharing about stock status and cash book status for all food branches provides accurate and timely information for management decision-making, financial planning, and audit compliance.

• User Adoption Rate (E-Services & Apps): As we implement advanced ordering and communication systems and expand e-services, the rate at which plant and sales teams adopt and effectively utilize these tools is a key measure of our success in digital empowerment.

• Reduction in Manual Processes/Paperwork: The introduction of dedicated apps and e-services directly reduces reliance on manual processes, leading to increased efficiency, reduced human error, and cost savings.

3. Strategic Initiatives and Future Impact

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3.1 Expansion to Other Food Branches

Our department is currently spearheading the implementation of our advanced logistics and WMS system into other food branches being taken over by MR Logistics. This initiative will directly impact:

• Standardization of Operations: Ensuring consistent, best-practice logistics across all food branches.

• Scalability of Systems: Proving the robustness and adaptability of our WMS and e-services to new operational contexts.

• Centralized Control and Visibility: Providing consolidated data and oversight for all food logistics under the MR Logistics team.

• Cost Synergies: Leveraging economies of scale in procurement, transportation, and warehousing across an expanded network.

• Faster Integration of New Acquisitions: Our established framework will significantly reduce the time and effort required to integrate new branches into the MRP ecosystem.

3.2 Real-time Data Sharing

The ongoing development of real-time data sharing for stock status and cash book status is a transformative initiative that will enhance:

• Financial Visibility: Empowering finance and management with up-to-the-minute cash flow and inventory asset data.

• Strategic Sourcing: Enabling more agile and informed purchasing decisions based on current stock levels.

• Sales Forecasting Accuracy: Providing sales teams with precise inventory availability to manage customer expectations and commitments.

• Risk Management: Identifying potential stockouts or overstock situations proactively.

3.3 E-Services for Departmental Empowerment

Our role in providing e-services extends beyond logistics, aiming to empower all departments by:

• Enhancing Inter-departmental Communication: Facilitating seamless information exchange.

• Automating Routine Tasks: Freeing up departmental resources for higher-value activities.

• Providing Self-Service Portals: Giving departments direct access to the necessary data and tools.

• Supporting Data-Driven Decision Making: Offering accessible and accurate data for various departmental functions.

 

4. Conclusion

The Central Logistics and E-Services department is not merely a cost center but a strategic asset driving efficiency, fostering growth, and enabling digital transformation across Muhammad Riaz & Partners LLC. Our direct influence on critical KPIs—from on-time delivery and inventory accuracy to system uptime and data integrity—underscores our indispensable role. As we expand our reach to new food branches and enhance our real-time data capabilities, we are poised to deliver even greater value, solidifying MR Logistics' position as a cornerstone of operational excellence within the organization.

 

Sincerely

​Central Logistics & E-Services Manager