Distribution Managers - Transportation Metrics That You Should Monitor for Success

Distribution Managers – Transportation Metrics That You Should Monitor for Success

Using electric yard trucks to move trailers is one way to immediately boost productivity and reduce costs. How do you uncover those less obvious but equally important areas for improvement? Transportation metrics help you implement and measure best practices to strike the right balance between service and cost.

Tips for Incorporating Transportation Metrics in Your Logistics Operation

– It’s easy to become overwhelmed by the sheer amount of available data. Choose the measurements that are most aligned with your goals and focus on three to five key performance indicators (KPI) per functional area.

– Don’t assume that you understand the various metrics. Make sure you know what each one measures, what variables affect them and how they are relevant to your specific business.

– Set goals that are aggressive enough to result in true growth, but realistic enough to be obtainable.

– Designate a person or department to take ownership of achieving a goal and be sure you’re all on the same page.

– The most sophisticated metrics mean nothing without corresponding action. Evaluate results and create plans to make any necessary improvements.

Commonly-Used Transportation Metrics

Freight cost per unit shipped is particularly helpful when standard units of measure are being used.

Percent of truckload capacity used reveals opportunities to maximize efficiency.

Transit time is vital for quoting accurate lead times.

Truck turnaround time is a good overall snapshot of your operations, including receiving and shipping processes.

Freight bill accuracy can detect small errors that add up to big savings.

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