PREVENTIVE KPIS AND OPERATIONAL RESILIENCE IN SMALL FREIGHT FORWARDERS: THE CASE OF MGL GEORGIA

Abstract

This study examines the role of preventive Key Performance Indicators (KPIs) in strengthening operational resilience in small international freight forwarding companies, using MGL Georgia as an empirical case. The research addresses the growing need for early-warning performance systems in small logistics firms operating under external volatility, limited resources, and high dependency on international carriers and agents. Methodologically, the study integrates a literature review on performance management and logistics risk, a comparative regional analysis of Georgia, Bulgaria, and Turkey, and a detailed empirical examination of MGL Georgia’s operational data. The theoretical foundation relies on Parmenter’s behavioural KPI model, which distinguishes between diagnostic indicators and action-oriented, preventive metrics. Empirical evidence demonstrates that small logistics firms predominantly rely on retrospective indicators that record deviations after they occur, limiting their ability to manage risks proactively. Operational data from MGL Georgia reveal critical vulnerabilities, including variable order-processing times, documentation errors, and unstable communication intervals driven by partner performance. The study identifies four key preventive KPIs -Time-to-Carrier-Response (TCR), First-Time Document Accuracy (FTDA), Proactive Status Update Ratio (PSUR), and Carrier Reliability Index (CRI) - as essential tools for forecasting disruptions. Proactive status updates substantially reduce the probability of SLA violations, underscoring the importance of behavioural compliance in service reliability. Comparative analysis highlights that regional market structures and regulatory contexts shape the types of risks that preventive KPIs must capture. The findings confirm that preventive KPIs improve operational predictability even in environments with high external dependency. The study proposes a structured KPI framework tailored to the needs of small freight forwarders, integrating behavioural, process, and partner-related indicators. Practical recommendations include digital dashboard integration, standardized documentation controls, proactive communication protocols, and partner-performance evaluation systems. The study’s limitations relate to its focus on one SME and partial reliance on internal ERP data. Overall, the research demonstrates that preventive KPIs constitute a scientifically grounded and operationally effective approach to enhancing resilience and competitiveness in small international freight forwarding companies.