Being an owner of a shipping company is an exciting but difficult thing. It’s necessary always to look for innovative and more winning logistics solutions to provide clients with the fastest shipping options. Yet, it’s a big mistake to think that only speed is a major key performance indicator in logistics.
The list of the most important KPIs includes the following points:
- Delivery and shipping periods.
Every person who needs shipping services wants to get them as soon as possible or at least on time. It doesn’t matter whether it comes to truck logistics or rail shipping, it’s of prime importance to meet deadlines.
The indicator is calculated in the following way. It’s necessary to take the ratio of orders which have been shipped on or before the requested ship date and divide it by the total number of orders. This figure is necessary while it helps you to plan further shipments;
- Order accuracy.
It shows how many shipments are completed by your company. It’s clear, even the best firms have requests they have failed to fulfill. If you are not sure whether you are able to cope with the request or not, it’s better to avoid it. Otherwise, this metric may be spoiled. It affects the reputation of your firm;
- Transportation expenses.
It encompasses all the costs you have to pay to complete deliveries. When you clearly realize what you pay for, you may reduce costs;
- Warehousing expenses.
Warehousing is a crucial element of freight forwarding. If you do not possess your own warehouses, you are to pay for renting them. It’s important to understand whether it’s profitable or not;
- The number of orders.
It’s important to understand how many shipments your company is able to carry out. The indicator is to help you to define your target audience. It’s necessary to optimize the functioning of the firm;
- The number of completed shipments.
This metric helps you to evaluate the effectiveness of your firm. If the number of shipments you failed to carry out is large than the number of orders you completed, it means there are some problems with the company;
- Inventory accuracy.
It’s of prime importance to keep everything under control. The best way to do this is to use innovative technologies.
There are leading freight forwarding services that possess the highest freight forwarding key performance indicators and metrics. They are able to achieve such results thanks to the flawless combination of speed, excellent customer service, quality, and accuracy.
By the way, it’s worth mentioning that the above-mentioned information may be helpful and useful not only for those who want to start and improve their transportation firms. It’s also needed by people who need reliable and credible carriers. It’s a good idea to make your choice based on these indicators. In such a way, you may avoid possible difficulties with the delivery period, proper packing, customer service, and paperwork.
So, logistics, like any other business, is to concern KPIs. Otherwise, there are risks of significant financial losses. At the same time, it’s worth mentioning that freight forwarders have to pay attention not only to numbers but also to their users’ experience.