Which measure can indicate the effectiveness of a logistics operation?

The effectiveness of a logistics operation can be most clearly indicated by metrics such as cost per unit and delivery time. These two elements are critical in assessing how well a logistics system is performing.

Cost per unit reflects the efficiency of resource utilization within the logistics process. A lower cost per unit typically suggests that the logistics operation is optimized, minimizing waste and maximizing resource efficiency. Additionally, delivery time is a direct measure of how quickly products are moved through the supply chain to reach customers. Shorter delivery times generally correlate with higher customer satisfaction and can indicate that logistical processes are functioning smoothly and effectively.

Combining these two metrics provides a comprehensive overview of both economic efficiency and operational speed, leading to a clearer understanding of logistics performance. This is essential for making informed decisions regarding improvements and adjustments in logistics strategy.