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You're a Transportation Manager. What are the most important metrics you should be tracking?

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As a transportation manager, you are responsible for planning, organizing, and overseeing the movement of goods and people from one place to another. You need to ensure that your transportation operations are efficient, safe, and cost-effective. To do that, you need to track and measure some key performance indicators (KPIs) that reflect the quality and effectiveness of your transportation processes. In this article, we will discuss some of the most important metrics you should be tracking as a transportation manager.

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JOHN CALLAS

Director of Operations at Piedmont National
James Excell- CMILT, MCMI

Senior Operations Support Manager | Strategic Leader | Supply Chain Professional | Fleet Manager |

1 On-time delivery

On-time delivery (OTD) is the percentage of shipments that arrive at their destination within the expected time frame. It is a crucial metric for customer satisfaction, retention, and loyalty. It also impacts your reputation, revenue, and profitability. To improve your OTD, you need to monitor and optimize your routes, schedules, drivers, vehicles, and carriers. You also need to anticipate and mitigate any potential delays or disruptions caused by traffic, weather, accidents, or other factors.

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Nazmul Bhuiyan

Project Management Specialist at USAID/Bangladesh
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Tracking key performance indicators (KPIs) and metrics is crucial for a Transportation Manager to ensure efficiency and effectiveness in their operations. These metrics include on-time performance, transit time, cost per mile, fuel efficiency, carrier performance, inventory levels, order fill rate, vehicle utilization, route optimization, shipment visibility, claims and damages, compliance with regulations, customer satisfaction, and lead time. Regularly reviewing and analyzing these metrics helps make informed decisions and enhance supply chain performance.

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2 Transportation cost

Transportation cost is the total amount of money spent on transporting goods and people. It includes fuel, labor, maintenance, tolls, taxes, insurance, and other expenses. It is a major component of your operating costs and affects your bottom line. To reduce your transportation cost, you need to analyze and control your spending patterns, negotiate better rates with carriers, optimize your load capacity and utilization, implement fuel-saving strategies, and leverage technology to automate and streamline your processes.

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JOHN CALLAS

Director of Operations at Piedmont National
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Optimizing the transportation KPIs below allows you to make processes more efficient and cut down on costs, leading to higher customer satisfaction and better profit. ? On-Time and In-Full…This metric determines the performance of a carrier as well as the end customer satisfaction. ? Number of Shipments…The number of shipments is a metric to track how many loads were sent out. ? Average Transportation Cost…These costs are broken down into distinct categories: order processing, administrative, inventory carrying, warehousing, and actual transportation costs. ? Freight Bill Accuracy…Inaccurate invoices could result in delayed payments and margin losses, leading to a drop in customer satisfaction.

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Shona Clark

Transport Manager at Company ceased trading prior to covid
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When I had the business I Had daily KPI’S run vehicles for the Pallet Ways contract also driver training taco reading weekly, Check with DVLA On licences. I also drove myself HGV class I moved Aircraft parts all over Country and Europe also 2 big contracts but when you slip on the Plate behind the cab while taking the Suzy’s off I slipped on grease that the driver put on the fifth wheel and fell backwards ended up in a Coma due to vertebrae smash neck, thoracic, lumbar area I am qualified in Health and Safety IOSH and NEBOSH hold CPC National and International I have been in Transport for 42 years prior to my Accident. So I was well aware of everything in Transport but a customer in Europe went bust so ￡68.000 loss I decided to pull plug.

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3 Transportation productivity

Transportation productivity is the ratio of output to input in your transportation operations. It measures how efficiently and effectively you use your resources to deliver your services. Output can be measured by the number of shipments, the distance traveled, the revenue generated, or the customer satisfaction level. Input can be measured by the number of vehicles, drivers, hours, or miles. To increase your transportation productivity, you need to improve your planning, scheduling, routing, dispatching, and tracking capabilities, as well as train and motivate your staff.

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4 Transportation safety

Transportation safety is the degree to which your transportation operations prevent or minimize the occurrence of accidents, injuries, damages, or losses. It is a vital metric for ensuring the well-being of your employees, customers, and the public. It also reduces your liability, risk, and cost. To enhance your transportation safety, you need to comply with all the relevant laws and regulations, enforce strict safety policies and procedures, conduct regular inspections and audits, provide adequate equipment and training, and foster a safety culture.

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5 Transportation sustainability

Transportation sustainability is the extent to which your transportation operations minimize the negative impact on the environment and society. It is a growing concern for customers, regulators, and stakeholders who demand more social and environmental responsibility from businesses. It also offers competitive advantages and long-term benefits for your organization. To achieve your transportation sustainability goals, you need to adopt green practices such as reducing your emissions, fuel consumption, and waste, using renewable energy sources, and supporting local communities.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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James Excell- CMILT, MCMI

Senior Operations Support Manager | Strategic Leader | Supply Chain Professional | Fleet Manager |
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Out all areas described here, customer service is the key KPI. How do you achieve this? 1. Employ the right person. 2. Develop, train and coach that person to support and develop them in their role. 3. Give them the tools to do the job right. Not just expect them to work in the same conditions without aiding them to strive for success. 4. Pay them for what the service that should be delivered. You simply get, what you pay for! 5. Regularly review your fleet to give drivers the best working conditions to deliver the best service to the customer. 6. Remember if you take care of the people, the business will take care of its self! Biggest lesson here, forget KPI and focus on people.

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You're a Transportation Manager. What are the most important metrics you should be tracking?

1

2

3

4

5

6

1 On-time delivery

2 Transportation cost

3 Transportation productivity

4 Transportation safety

5 Transportation sustainability

6 Here’s what else to consider

Transportation Management

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You're a Transportation Manager. What are the most important metrics you should be tracking?

1

2

3

4

5

6

1 On-time delivery

2 Transportation cost

3 Transportation productivity

4 Transportation safety

5 Transportation sustainability

6 Here’s what else to consider

Transportation Management

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