What key performance indicator is often used to measure the efficiency of medical logistics operations?

The selection of inventory turnover as the key performance indicator reflects its significance in measuring the efficiency of medical logistics operations. Inventory turnover indicates how often inventory is sold and replaced over a specific period. A high inventory turnover rate implies that the medical logistics provider is effectively meeting the demand for medical supplies and equipment, minimizing excess stock, reducing holding costs, and enhancing cash flow. This is particularly crucial in healthcare settings, where timely availability of medical products can significantly impact patient care.

In contrast, while delivery time, cost per order, and supplier reliability are important metrics, they do not directly assess the broader efficiency of the entire logistics process to the same extent as inventory turnover. Delivery time focuses specifically on transportation efficiency, which is just one aspect of the logistics operation. Cost per order can offer insights into financial efficiency but may not reflect how well the inventory is managed. Supplier reliability assesses the performance of suppliers rather than the internal efficiency of the logistical processes. Therefore, inventory turnover provides a comprehensive view of how well the medical logistics operation is functioning regarding inventory management.