Balanced System of Key Performance Indicators of the Enterprise Logistics

In a turbulent economic and geopolitical situation, special attention is paid to improving the efficiency of the procurement activities of the enterprise, since the costs of purchasing goods, works, services make up a significant share in the production cost of commodity products, and the organization of the procurement process itself affects the smooth operation of the enterprise. The purpose of the study is to develop a flexible, adaptive and up-to-date system for measuring procurement performance. The author has formed a system of balanced evaluation criteria, justified the need to apply key performance indicators, measure and constantly monitor the level of their achievement. The system is based on accounting for financial indicators, as well as on assessing the level of interaction with internal customers, partners, the debugging of internal processes and the implementation of project initiatives. The results obtained allow to identify bottlenecks and directions for improving the logistics of the enterprise. The article justifies the use of corporate, functional and operational indicators of procurement performance in the following areas: “Economics/Finance”, “Relations with Counterparties”, “Internal Processes”, “Innovations, Technologies and Personnel”. The author draws attention to the requirements that each evaluation criterion included in the system of balanced indicators must meet. It is recommended to develop a matrix of cross-functional indicators, which will contain key performance indicators for all co-dependent departments of the enterprise. A balanced system of key performance indicators is an effective mechanism for creating a system of motivation for logistics personnel. Practical significance and novelty lies in the complexity and adaptability of the developed system, which allows it to be applied at enterprises of all forms of ownership and industries.

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Publication Details

Journal
Baikal Research Journal
Published
2025-04-09
DOI
https://doi.org/10.17150/2411-6262.2025.16(1).354-366
Primary Topic
Healthcare Systems and Public Health
Type
article
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article

Balanced System of Key Performance Indicators of the Enterprise Logistics

Valeriya Alferova
Baikal Research Journal
Healthcare Systems and Public Health
article

Balanced System of Key Performance Indicators of the Enterprise Logistics

Valeriya Alferova
article en

Abstract

In a turbulent economic and geopolitical situation, special attention is paid to improving the efficiency of the procurement activities of the enterprise, since the costs of purchasing goods, works, services make up a significant share in the production cost of commodity products, and the organization of the procurement process itself affects the smooth operation of the enterprise. The purpose of the study is to develop a flexible, adaptive and up-to-date system for measuring procurement performance. The author has formed a system of balanced evaluation criteria, justified the need to apply key performance indicators, measure and constantly monitor the level of their achievement. The system is based on accounting for financial indicators, as well as on assessing the level of interaction with internal customers, partners, the debugging of internal processes and the implementation of project initiatives. The results obtained allow to identify bottlenecks and directions for improving the logistics of the enterprise. The article justifies the use of corporate, functional and operational indicators of procurement performance in the following areas: “Economics/Finance”, “Relations with Counterparties”, “Internal Processes”, “Innovations, Technologies and Personnel”. The author draws attention to the requirements that each evaluation criterion included in the system of balanced indicators must meet. It is recommended to develop a matrix of cross-functional indicators, which will contain key performance indicators for all co-dependent departments of the enterprise. A balanced system of key performance indicators is an effective mechanism for creating a system of motivation for logistics personnel. Practical significance and novelty lies in the complexity and adaptability of the developed system, which allows it to be applied at enterprises of all forms of ownership and industries.

Baikal Research JournalVol. 16(1)
Baikal State University (RU)
Openalex Percentile: Top 78%
Healthcare Systems and Public Health
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