How can you measure the impact of transportation performance on overall supply chain efficiency?

Transportation cost is an important factor in supply chain management. It can greatly impact the overall profitability of a business. There are various factors that influence transportation costs, such as distance, mode of transportation, fuel prices, and any additional services required. To optimize transportation costs, businesses often use strategies like route optimization, load consolidation, and negotiating favorable contracts with carriers.

For me - the greatest measurement of overall supply chain efficiency is customer satisfaction. Speed - coupled with information flow - is the name of the game. When the supply chain works, the shippers' customer has product on the shelf or at the vendor's plant without question. It is like a well ran marching band performing on the field!

An important metric could be the variance in the lead time. Over a period of time, a company is likely to see both fast and slow periods in different channels of transportation - monsoon may disrupt inland waterways movement, landslides may disrupt rake movement, festivals may cause shortage of truck drivers etc. A good transportation strategy should account for all such distributions and still deliver in standard lead times. Important to note that I am not emphasizing on minimising the lead times. It's of course important. But more important is minimising the variance in lead times

For me to measure the impact of the transportation performance for the overall supply chain efficiency include: transport cost, delivery precision and leadtime

Pour moi, je pense qu'il faut mutualiser la logistique le plus possible quand cela est possible. Cela présente des avantages significatifs en termes d'efficacité opérationnelle et de réduction des co?ts. En regroupant les ressources logistiques, les entreprises peuvent optimiser leurs processus de livraison, minimiser les trajets à vide et partager les infrastructures, ce qui contribue à une empreinte carbone plus faible. Cependant, il est crucial de bien gérer la coordination entre les partenaires impliqués pour assurer le succès de cette approche collaborative.

TRANSPORTATION ENHANCES CUSTOMER SATISFACTION Making sure finished products reach a customer on time and in the condition they were shipped in is an essential aspect of transportation management. Transportation is one of the few processes in a supply chain where companies have direct interaction with the customers. As such, ensuring quick and reliable delivery while taking measures to avoid delays can increase customer satisfaction and establish your brand’s reputation as reliable and trustworthy.

The service lever is teh kimg, bades in my expreiencia the NPS of transportation will be 360 degree the customer satisfactions

Transportation optimization may have once been the domain of larger companies that had complex transportation requirements, however, the demands of today’s omnichannel distribution and e-commerce channels have made it universally applicable. While optimization and mathematical models have been used in the supply chain industry for years (i.e., inventory planning and strategic sourcing), the adoption of transportation optimization has been relatively low. All company wants to get the execution piece right before introducing optimization into the picture. Historically, companies had to invest in execution systems that automate processes before figuring out how to optimize. As a result, transportaton optimization has been left out of the mix.

Llegar a la satisfacción total del cliente es sin duda el mayor indicador del impacto positivo en los procesos de transporte, no solo porque se halla cumplido con el envió de su pedido sino ante todo con la garantía y confiabilidad del manejo de sus requerimientos en cuanto a que tan sostenible sea su permanencia con la compa?ía y su relación con la misma, en poder darle campo abierto a una mutua retroalimentación de cuales podrían ser unos próximos beneficios por el avance de ambas partes y así poder tocar fondo y lograr el manejo de la necesidad misma del cliente, que en el mejor de los casos puede ser causal del descubrimiento de un nuevo valor agregado y permitir la elección del cliente para con la compa?ía.

Transportation services play a crucial role in supply chain management. They involve the movement of goods from one location to another using various modes of transportation such as trucks, trains, ships, or planes. These services ensure that products are delivered efficiently and on time, helping businesses meet customer demands. Transportation service providers offer a range of options, including freight forwarding, warehousing, and logistics solutions, to meet the unique needs of different industries.

Transit time is a crucial performance indicator in supply chain management, measuring the duration it takes for goods to move from the point of origin to the final destination. Analyzing transit time involves examining each stage of the transportation process, from the moment products leave the supplier to their arrival at the customer's doorstep. Longer transit times can impact overall supply chain efficiency by potentially causing delays in production, distribution, and fulfillment. Identifying and understanding the factors influencing transit time, such as transportation routes, modes, and potential bottlenecks, is essential.

Productivity will be very important to have more efficiente freght, as load uutilization, empty space by volumen or weight, route optimization, driver capabilities, but I would like the ambiental impact how we can reduce CO2

One thing I have found impactful is "Time in route (TIR)" - the time it takes for goods to move from one point (origin) to another (destination). Realistically, 'shorter transit times often indicate an efficient transportation'

Transportation productivity refers to the efficiency and effectiveness of transportation operations in terms of moving goods from one place to another. It is measured by factors such as the number of goods transported, the distance covered, and the time taken. Increasing transportation productivity can lead to cost savings, improved customer satisfaction, and better overall supply chain performance. Strategies to enhance transportation productivity include optimizing routes, utilizing advanced technology, and improving coordination between different stakeholders in the supply chain.

Productivity in transportation, gauged through metrics like load factor and route optimization, highlights efficiency. Balancing cost and service trade-offs is essential, requiring integration with supply chain strategy for optimal results.

Sustainability in transportation, assessed through indicators like carbon footprint and social responsibility, addresses environmental and social impacts. Achieving it involves aligning transportation goals with supply chain values, ethics, and engaging stakeholders for a holistic approach.

Sustentability is also customer satifaction, as a customer we will like to hace zero emission, The way to reduce emission will be network desing, full truck load e more effciient way to move trucks

On-Time Delivery is a crucial metric in supply chain logistics. It measures the percentage of shipments that meet or exceed their scheduled delivery times. This metric has a significant impact on customer satisfaction, inventory efficiency, and overall operational efficiency. By systematically benchmarking and utilizing advanced tracking systems, it becomes possible to calculate OTD rates, which have a direct impact on brand loyalty, cost savings, and streamlined operations. Continuous improvement requires strategic initiatives, such as root cause analysis and collaborative efforts with suppliers. In essence, OTD serves as an essential indicator of transportation prowess, providing valuable insights for sustained supply chain optimization.

Transportation sustainability focuses on reducing the environmental impact of transportation activities. It involves implementing practices that minimize carbon emissions, promote energy efficiency, and reduce waste. Sustainable transportation options include using electric or hybrid vehicles, promoting public transportation, encouraging cycling and walking, and optimizing logistics to reduce fuel consumption. By adopting sustainable transportation practices, businesses can contribute to a greener and more environmentally friendly supply chain.

Caminh?es para transporte com sistema elétrico de combustível, além diminuir a polui??o diminuiria nos gastos com o próprio combustível

Based on my experience following are the most critical 1. Transportation Cost 2. Customer Service Level 3. Growth in operational efficiency

Based on my experience I also consider Transportation Cost the way to have 1. Customer Service Satisfaction 2. Growth Bussines 3. Reduce ambiental impact

The Lead time, the period from customer demand to final product delivery, arguably stands as the most pivotal indicator in assessing a supply chain's performance. This metric, often overlooked, measure the operational efficiency and plays a significant role in cost management and greatly influences customer satisfaction. Understanding and optimizing lead time can lead to substantial improvements in overall supply chain effectiveness, ensuring that customer needs are met promptly and efficiently.

There are 3Cs to measure transport performance 1. COST 2. CUSTOMER SERVICE 3. CARBON EMISSIONS I also include Safety in it.

The right metrics & KPIs are critical; - On-time Delivery Performance, it is a key indicator of transportation performance and can have a significant impact on overall supply chain efficiency - Transportation Cost as a % of Sales, a lower percentage indicates more efficient transportation performance - Perfect Order Fulfillment or DIFOT. - Inventory Turnover, efficient transportation can help reduce lead times & improve inventory turnover, which can have a positive impact on overall supply chain efficiency. - Transportation Lead Time, this metric measures the time it takes for a product to move from the supplier to the customer. Shorter lead times are generally a sign of more efficient transportation .performance.