Purpose

The aim of this thesis is to find out the perception of the usefulness of key performance indicators (KPIs) among Logistics service providers (LSP) who are in the category of Micro and Small enterprises (MSEs) companies in Dhaka and Chittagong in Bangladesh.

What is the perception of the usefulness of Key performance Indicators (KPIs) among the managers of LSP MSEs in Bangladesh?

Methodology

The data for this thesis was collected through qualitative research techniques through semi-structured interviews with 7 LSP MSE companies In Bangladesh.

Theory

Theory section highlighted the challenges LSP MSE companies continuously face. With an increasing number of companies, the number of LSPS are growing at a faster pace to support those companies. LSP MSE companies have to compete more in a vibrant market for which it is crucial for them to track the performance of their company and make continual improvements. KPIs are a performance measurement tool which can help the LSP MSE companies to be more competitive in the market as business survival is one of the main priorities of these companies. 

Empirical findings, Analysis and Discussion

This part presents the responses from the managers of LSP MSEs and then the narratives are explained with supportive theories. Findings show a moderate level of adoption of KPIs among the companies. With the right KPIs companies are able to turn the complex matter into a simple form with KPIs. KPIs can enable the companies towards better decision making processes with a clear picture about the direction. To improve the business performance, interviewed companies perceive that on time delivery, customer order cycle time, supply chain cycle time, on time shipping rate, number of customer returns, returns on investment, paying and returning customers are the most suitable for them. With KPIs they are able to act quickly when there is a downward trend in the company. Interviewed companies assert that KPIs provide a clearer view of the overall health of the organization than other performance assessment techniques.