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I. OBJECTIVE:
To make known the usefulness of KPIs for performance evaluation.
processes
Promote the use of KPIs in the different areas of the company
.
II. SCOPE:

III. DESCRIPTION OF THE ACTIVITY:

A 'Key Performance Indicator' or KPI will be understood as the indicators that allow us to
measure the performance level of a process, to achieve a desired objective.

The KPIs are characterized by having a number of defined qualities as follows

● Specific, a KPI must be clear and focused on the objective that is to be measured.
● Measurable, a KPI must be expressible in numerical terms.
Achievable, the objectives of a KPI must be reasonable and attainable.
● Realistic or relevant, a KPI is directly pertinent to the work done in the
project.
● Temporary, a KPI must allow its monitoring over a period of time.

It is important to remember that each company may have its own specific KPIs.
function of its objectives and business strategies. In addition, the KPIs must be measurable,
relevant and realistic to be used as effective management tools.

1. Warehouse indicators to monitor logistical performance

There are multiple warehouse indicators that analyze logistics management. When it comes to
choose which metrics are most decisive to understand the performance of operations
storage, order preparation, and shipping of goods must have
count variables such as the characteristics of the warehouse, the location of the merchandise, the
type of product or the unit of load to store, among others.

These are some of the most appropriate warehouse indicators to monitor the
logistical performance

1.1. Efficiency in the receipt of goods

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Measure the productivity of the work being done in the reception area of the warehouse.
This metric is useful for assessing the performance of transportation systems and
storage, as well as the efficiency of receiving devices and the formation of
the workers, among other issues. A rational goods reception reduces the
risk of stock loss and simplifies operations such as storage or the
order preparation.

The formula to measure the efficiency in the receipt of goods is:

Efficiency in reception = volume of stock received / total number of hours

work.

For example, if a company receives 480 units of cargo per day and the warehouse operates in
three shifts of work, the efficiency in reception would be:

480 / 24 h = 20 units of load per hour.

1.2. Occupation of the cargo sectors

Calculate the occupancy percentage of the loading sectors during the operation of
reception ―or dispatch, or both―. The 100% load occupancy can indicate to
Logistics manager the need to expand the warehouse yard. The formula for this
performance indicator is:

Occupation of the loading sectors = (loading sectors employed / loading docks

available) x 100.

Continuing with the previous case, if to receive the 480 pallets daily the warehouse only
uses 5 of the 7 available docks, the percentage of occupancy of the docks of
load is:

(5 / 7) x 100 = 71% occupancy of the cargo sectors during the tasks of

reception.

1.3. Inventory turnover rate

Measure the number of times that the supplies of merchandise are transformed into
completed orders during a specific period of time (generally, one year). In
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In other words, this indicator calculates the times that the stored products meet.
the entire business cycle (sale, exit from the warehouse, and collection). As a general rule, a rate
a high inventory turnover is beneficial for the company, as the greater
movement of stock reduces storage costs.

Inventory turnover rate = cost of goods sold / average value of

stocks.

As an example, if the cost of goods sold is $720,000 and the average value of
The stock is $120,000, the company's turnover rate will be:

720,000 / 120,000 = 6. Or in other words, the company renews its entire inventory every
every two months on average, since 6 is the turnover rate of
resulting inventory.

1.4. Stock out index

Show the percentage of orders that are not satisfied due to insufficient stock
to meet the demand. The logistics manager must ensure that this value
be as low as possible to ensure delivery to the customer.

Stock out rate = (number of unfulfilled orders due to lack of stock /

total number of orders) x 100.

If the average number of unattended orders due to lack of stock is 60 per month out of a total
From 450 monthly orders, the stockout percentage will be:

(60 / 450) x 100 = 13.33% of stock breaks in the warehouse.

1.5. Precision in picking

This warehouse indicator allows calculating the efficiency in the preparation operation.
orders. A productive picking operation must reflect a numerical value as closely as possible.
as close to 100% as possible, meaning that orders are processed without errors and in the
minimum possible time.

Picking accuracy = [(total number of orders - returns of items]

(incorrect) / total number of orders] x 100.
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Thus, if a company sent out 5,400 orders last year and the customers only
they returned 350, the accuracy in the picking will be:

(5.400 - 350) / 5.400 x 100 = 93.5% accuracy in picking.

Some examples of KPI (Key Performance Indicators) for the area

commercial, along with its calculation

2.1. Tasa de Conversión:Esta métrica indica cuántos clientes potenciales se

turn into real customers. The formula to calculate the conversion rate
es:

Tasa de Conversión = (Número de clientes reales / Número de clientes potenciales) x

100%

2.2. CAC (Customer Acquisition Cost): This indicator measures the cost
average of acquiring a new customer. The formula to calculate the CAC is:

CAC = (Costo total de ventas y marketing / Número de nuevos clientes adquiridos)

2.3. Sales Cycle Time: This indicator measures the average time that
It takes a potential customer time to become a real customer. The formula for
calculating the sales cycle time is:

Sales Cycle Time = (Total Sales Time / Number of Actual Customers)

2.4. Customer Lifetime Value (CLV): This metric measures the economic value that a
the client contributes to the company throughout its entire life cycle. The formula for
calculating the CLV is:

CLV = (Total customer revenue - Total customer acquisition and retention cost) x
Duration of the relationship with the client

2.5. Customer Satisfaction Index (CSI): This indicator measures the degree of
customer satisfaction with the company's products or services. The CSI
it is measured through surveys and customer ratings.
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some common KPIs to measure the performance of sellers, along with their
calculation formulas:

Ventas totales: Mide el valor total de las ventas realizadas por un vendedor en un período
determined. The formula for calculating total sales is as follows: Total value of the
sales.

Sales per customer: Measures the average value of sales made by a seller to
Each client. The formula to calculate sales per client is as follows: Sales
totals / Number of customers served.

Lead conversion rate: Measures a salesperson's ability to

convert potential clients into active clients. The formula to calculate the rate of
conversion of potential customers is as follows: (Number of new customers / Number
of potential customers) x 100%.

Customer acquisition cost: Measures the average cost of acquiring a new customer.
The formula to calculate the customer acquisition cost is as follows: Sales costs
Marketing / Number of new customers acquired.

Customer retention rate: Measures a seller's ability to retain customers.

existing customers. The formula for calculating the customer retention rate is the
(Number of customers renewing / Total number of customers) x 100%.
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Contribution margin: Measures the gross profit that a seller generates after
deduct the variable costs. The formula to calculate the contribution margin is the
Next: Total sales - Variable costs.

KPIs (key performance indicators) are measures used to evaluate the

success or the performance of a particular process or area. Here are some common KPIs
for the food production area:

Production efficiency: Measures the amount of product produced compared to the

time and the resources used to produce it. The formula for calculating efficiency of
production is as follows: (Quantity of product produced / Time or resources
used) x 100%.

Rejection rate: Measures the amount of products that do not meet the standards of
quality and must be rejected. The formula to calculate the rejection rate is the
(Number of rejected products / Total number of products produced) x
100%.

Production cycle time: Measures the time it takes to produce a product,

from the entry of raw materials to the exit of the finished product. The formula
To calculate the production cycle time, the following is used: Total production time /
Number of products produced.

Yield rate: Measures the amount of product obtained from a

a certain amount of raw material. The formula for calculating the yield rate is
(Amount of product produced / Amount of raw material used) x
100%.
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Production cost: Measures the total cost of producing a product, including the costs of
raw materials, labor, and other related costs. The formula to calculate the
Production cost is the following: Total production cost / Number of products
produced.

These are just a few examples of KPIs that can be useful in the production area.
of food. Depending on the specific goals of your company and the products
that you produce, you may want to develop additional KPIs or adapt these for
that meet your needs.

some common KPIs in the quality area of the food industry:

Defect rate or non-conformities: This metric measures the number of products that
do not meet the specified quality standards. The formula to calculate the rate
defects is as follows: (Number of defective products / Total number of
(products produced) x 100%.

Customer Satisfaction Index: This metric measures customer satisfaction with the
product. It is a subjective measure, but it can be measured through surveys to the
customers or through data analysis of product returns.

Response time to quality issues: This metric measures the time it takes to
to respond to the quality issues that arise. The objective is to solve the problems as
as soon as possible to minimize the impact on product quality.

Cost of quality: This metric measures the costs associated with quality management,
including inspection costs, testing and trial costs, and the costs of
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repair and rework. The formula for calculating the cost of quality is as follows:
(Total cost of quality management / Total number of products produced) x 100%.

Compliance with norms and regulations: This metric measures the degree to which compliance is achieved.
the rules and regulations of the food sector. It can be measured through audits
internal or external.

Some common collection KPIs with their respective calculation formulas:

Days Sales Outstanding (DSO): Measures the average time that elapses from the date
for sale until the moment payment is received. It is a key measure of efficiency.
from collections management. The formula to calculate DSO is as follows: (Accounts receivable
charge / Daily sales) x Number of days.

Collection index: Measures the effectiveness of the company in collecting outstanding accounts.
It can be measured as the percentage of the total amount of outstanding accounts that have been
charged in a specified period. The formula to calculate the collection index is the
(Collections received in a period / Accounts receivable at the beginning of the period) x
100%.

Accounts receivable index: Measures the level of accounts receivable of the company.
comparison with sales. It is a measure of the liquidity and solvency of the company.
The formula to calculate the accounts receivable ratio is as follows: (Accounts receivable
(Revenue / Total Sales) x 100%.

Collection recovery rate: Measures the effectiveness of the company to

recover uncollectible accounts. The formula to calculate the recovery rate of
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uncollectible accounts is the following: (Amount recovered / Total account balance

uncollectible) x 100%.

Number of overdue accounts: Measures the number of accounts that have surpassed their due date.
of maturity. The formula to calculate the number of overdue accounts is simply
count the number of accounts that are in this situation.

IV. PERSONAL PROTECTION ELEMENTS AND ASSOCIATED PREVENTION

NA

V. CHANGE CONTROL
Date Responsible Version Changes Modified Aspect