How do you compare your transportation planning to industry standards?

1 Identify your key performance indicators

To compare your transportation planning to industry standards, the first step is to define and measure your key performance indicators (KPIs). These KPIs are quantifiable metrics that reflect how well you are achieving your transportation goals and objectives. Examples of common KPIs for transportation planning are transportation cost per unit, on-time delivery rate, transportation capacity utilization, and transportation carbon footprint. To calculate these KPIs, you can use various sources of data such as a transportation management system (TMS), carrier invoices, customer feedback, or internal reports. Additionally, dashboards and analytics tools can be used to visualize and monitor your KPIs over time and across different modes, routes, and regions.

2 Compare your KPIs to industry benchmarks

The next step to compare your transportation planning to industry standards is to find reliable and relevant industry benchmarks for your KPIs. Industry benchmarks can help you assess how you are performing compared to your peers and competitors, and identify gaps and opportunities for improvement. You can obtain industry benchmarks from various sources, such as industry associations and publications, third-party research and consulting firms, and online platforms and databases. Additionally, you can create your own benchmarks by surveying or collaborating with customers, suppliers, or partners, or by joining industry networks or forums. Here, you can share and compare your KPIs and best practices.

3 Analyze your strengths and weaknesses

The third step to compare your transportation planning to industry standards is to analyze your strengths and weaknesses based on your KPIs and benchmarks. You can use various methods and tools to conduct a comprehensive and objective analysis, such as SWOT analysis, gap analysis, and benchmarking analysis. Additionally, qualitative methods, such as interviews, focus groups, or surveys, can be used to gain feedback from internal and external stakeholders on your transportation planning performance and improvement areas. With these methods, you can identify your internal strengths and weaknesses, compare your current and desired performance levels, and compare your processes, practices, and performance to those of the best-in-class performers in your industry or market.

4 Implement improvement actions

The final step to compare your transportation planning to industry standards is to implement improvement actions based on your analysis and findings. You can optimize your transportation network design and routing, improve your transportation mode and carrier selection, enhance your transportation visibility and collaboration, and implement continuous improvement and innovation. Advanced tools such as network modeling, simulation, optimization, or artificial intelligence can help you find the optimal configuration and allocation of resources and activities, reduce costs, emissions, and risks. Data-driven methods and criteria such as cost, service, reliability, capacity, or sustainability can be used to choose the most suitable and efficient mode and carrier for each shipment or order. Digital technologies and platforms such as TMS, GPS, RFID, or blockchain can be employed to track shipments in real-time while allowing for communication and coordination with transportation partners. Finally, frameworks such as lean, six sigma, or agile can be used to monitor and measure performance while identifying new solutions for improving processes, practices, and outcomes.

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?