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This white paper proposes a performance management framework for third-party logistics aggregators (3PLs) that connect e-commerce companies and logistics providers. The logistics industry has grown rapidly in recent years, and with the emergence of aggregators, performance records must be updated. Using a case study of an Indonesian startup PT P, we create a framework using qualitative and quantitative interviews with the company's C-levels. The framework is based on KPBMS, a simple and knowledge-based performance management system available in Indonesia. Traditional financial-based performance management systems have proven limited in their ability to adapt to modern organizational operating systems. A new-generation performance management system is based on the company's strategy and values, is customer-centric, long-term, and emphasizes continuous improvement. The proposed framework includes strategic objectives, key performance indicators (KPIs), objectives, initiatives and reviews. KPIs are categorized into financial, customer, internal process, and learning and growth perspectives. Goal setting is based on broader goals, and initiatives are defined on the basis of rapid outcomes and long-term projects. The review process includes monthly, quarterly, and annual reviews focused on identifying areas for improvement. The proposed framework will help 3PL aggregators like PT P to set up a performance management system to monitor the performance of logistics providers and provide recommendations to e-commerce companies. |
