Logistics Performance Measurement for Sustainability in the Fast Fashion Industry

The fast fashion sector is characterized by a short time-to-market which adds to the fluctuating demand faced by this industry where competition requires to introduce a number of new designs in clothing each season. In such a context, some firms have started creating independent companies in charge of managing logistics operations. This strategy allows a direct control over logistics activities enabling to save time and costs and increase quality. However, in order to obtain the promised benefits, independent logistics companies need to be sustainable from both an operational and an economic point of view. To this end, an appropriate performance management appears to be essential. The paper develops a structured performance measurement system for an independent logistics organization part of an Italian fast fashion company. After reviewing the existing logistics performance measurement models, the LOGISTIQUAL model was selected because it balances all the perspectives of the logistics service. The company processes were mapped to identify the activities to be monitored. KPIs were defined and classified according to each performance area of LOGISTIQUAL. Prior to its implementation, the performance measurement system was validated by applying the indicators to past data. This work provides fast fashion firms with a methodology to design and implement logistics performance measurement dashboards that can be used to understand the current organizational behavior. Such knowledge assists in defining effective strategies to ensure competitive advantage and long term sustainability. Also, monitoring performances stimulates people to operate in order to achieve the company’s goals.