Incentive structure of employees in supply chain industry or logistics industry? - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Rahul Chhabra
Hr Professional

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Hi all can any one share me the incentive structure of employees in supply chain industry or logistics industry. its very urgent
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Dear Pawan,
i really dont know what are you seeking. However for any SCM or Logistics professional, following are some of the KPI bases targets that can be considered for paying incentives:
1. Transportation Cost
2. Order Fill Rate
3. Logistic & warehousing Cost
4. Delivery Time
5. Value of Slow moving
The KPIs vary industry to industry. Hope it helps.
Rahul Chhabra
Dear Pavan,
This us in addition to what Mr Rahul Chhabra has said. Incentives are always based on the attainment of the given targets. These targets could be either costs or ratios associated the business. However, mere assigning these costs or ratios to the HODs is not adequate. We need to have mechanism to measure these scientifically also. Do you have such mechanism? Otherwise, flawed measurement will do more damage than good.
Dinesh Divekar
Dear Rahul Ji . i need sample incentive structure for marketing and sales department in logistics industry. based on KPI .
can u help me in providing that
Dear Pavan Ji,
You need to devise the Incentive structure basis the company goals you have set for the year. Company goals can be further broken down to set departmental or individual/role goals.
I suggest you learn & use the MBO (Management by Objective) system. MBO system uses quantified goals to calculate the performance linked incentive payout. Each and every objective is range bound with a weightage. You can keep a 30:70 ratio for company goals to role goals. Company goals could be measured in EBIDTA, Customer Satisfaction index, Cash Flow, order book value etc. Role goals for sales staff could be Net sales, credit days etc. Role goals for Marketing should be related to goals assigned to sales employees, and few examples include number of campaigns, product development, net sales, cost of pop material etc.
That's all i can suggest. Hope it helps.
Rahul Chhabra
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