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How do you choose the right transportation benchmarking tool for your business needs?

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Transportation benchmarking is the process of comparing your transportation performance and costs with other companies or industry standards. It can help you identify gaps, opportunities, and best practices to improve your transportation efficiency, service, and profitability. But how do you choose the right transportation benchmarking tool for your business needs? Here are some factors to consider.

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RoxAnne Richer Thomas, MS

Transportation Manager @ Nestlé | MS in Supply Chain Management

1 Define your goals and metrics

Before you start looking for a transportation benchmarking tool, you need to define your goals and metrics. What are you trying to achieve with transportation benchmarking? What are the key performance indicators (KPIs) that matter to you and your customers? How do you measure and track them? For example, some common transportation KPIs are cost per mile, on-time delivery, fuel efficiency, and carbon footprint. You need to have a clear and consistent way of collecting and analyzing these data across your transportation network.

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RoxAnne Richer Thomas, MS

Transportation Manager @ Nestlé | MS in Supply Chain Management
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One thing to consider is the type of freight you move. If you ship mostly international, or parcel, or FTL your KPI may be quite different. So, be sure what you are measuring tells a story of what is moving - and how.

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2 Evaluate the data sources and quality

The next factor to consider is the data sources and quality of the transportation benchmarking tool. Where does the tool get its data from? How reliable, accurate, and up-to-date is it? How does it handle data gaps, outliers, and anomalies? How does it normalize and standardize the data to ensure comparability and relevance? You want a tool that uses credible and comprehensive data sources, such as industry surveys, public databases, or third-party providers. You also want a tool that ensures data quality and integrity, such as by applying data validation, cleansing, and auditing techniques.

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RoxAnne Richer Thomas, MS

Transportation Manager @ Nestlé | MS in Supply Chain Management
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Also consider service when comparing rate data. Two orgs of comparable FUM may have very different service level needs and internal staff to manage. If you're running a team of 3 and the comparables have transportation teams of 20 the cost to manage your freight is likely built into your rates, and maybe that is OK. But, know what you're benchmarking.

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3 Compare the features and functionality

Another factor to consider is the features and functionality of the transportation benchmarking tool. What does the tool offer in terms of functionality, usability, and flexibility? How easy is it to access, navigate, and customize the tool? How does it present and visualize the data and insights? How does it enable you to drill down, filter, and segment the data according to your needs? How does it support decision making and action planning? You want a tool that offers features and functionality that match your goals and metrics, such as by providing dashboards, reports, charts, graphs, alerts, recommendations, or benchmarks.

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4 Consider the costs and benefits

The final factor to consider is the costs and benefits of the transportation benchmarking tool. How much does the tool cost to acquire, implement, and maintain? What are the direct and indirect benefits of using the tool? How do you measure and quantify the return on investment (ROI) of the tool? How do you communicate and demonstrate the value of the tool to your stakeholders? You want a tool that fits your budget and delivers value for your business, such as by reducing costs, increasing efficiency, enhancing service, or improving profitability.

Choosing the right transportation benchmarking tool for your business needs can be a challenging task. But by considering these factors, you can narrow down your options and select the tool that best suits your transportation goals and metrics, data sources and quality, features and functionality, and costs and benefits.

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5 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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Amanpreet Kaur

Sustainable Urban Development| Climate Change & Urban Planning | Infrastructure Financing
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stakeholder engagement is also important when choosing a transportation benchmarking tool. Stakeholders are the people who have an interest in your transportation operations, such as customers, employees, and government officials. Engaging with stakeholders can help to: -Get their input on the benchmarking process: Stakeholders can provide valuable insights into the data that you should collect and the metrics that you should use. -Gain their support for the benchmarking process: Stakeholder support is essential for the success of any benchmarking initiative. -Build consensus around the findings of the benchmarking process: this can help to ensure that the findings of the benchmarking process are accepted and implemented.

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How do you choose the right transportation benchmarking tool for your business needs?

1

2

3

4

5

1 Define your goals and metrics

2 Evaluate the data sources and quality

3 Compare the features and functionality

4 Consider the costs and benefits

5 Here’s what else to consider

Transportation Management

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How do you choose the right transportation benchmarking tool for your business needs?

1

2

3

4

5

1 Define your goals and metrics

2 Evaluate the data sources and quality

3 Compare the features and functionality

4 Consider the costs and benefits

5 Here’s what else to consider

Transportation Management

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