In modern manufacturing and transportation, savings are everything. Most industry experts rate the cost of logistics as very costly. Nearly every company offers some sort of discounted shipping plan for large purchase orders, and more customers are demanding faster delivery at a reduced rate. Identifying ways to improve the system can be complicated. However, if you know what critical freight management KPIs or key performance indicators to track, you can know exactly how to change processes to decrease costs, which will result in savings for the end user. According to a National Cooperative Freight Research Program report, Performance Measures for Freight Transportation, the following graph breaks down how other respondents rate the cost of logistics.

Cost of Logistics Report Graph for freight management kpis

Federal Power Over Freight Management KPIs

Freight Management KPIs are undoubtedly the most important metrics to track and understand.  Freight Management KPIs depend on upon who ultimately wants to know the information. In other words, federal agencies may require different KPI reporting what trucking companies want to know.

Although trucking is deregulated, federal agencies may require routine updates on how shipping companies operate and impact the economy.

freight management kpis for federal agencies.

It’s important to remember the KPIs mentioned above reflect analytical determinations from compiled KPIs from trucking companies.

Core KPIs to Track and Understand

A recent publication by the Minnesota Department of Transportation, Measurement Sources for Freight Performance Measures and Indicators, identified dozens of ways KPIs are used.  To trucking companies, critical KPIs, and their benefits include the following:

These core freight management KPIs are only a fraction of the possibilities, and each metric may go by other names with different companies, such as total transportation costs for overall revenue yield or percentage of deadhead miles for causes of unnecessary delays. Ultimately, this simple list of  freight management KPIs will provide an excellent means of identifying how to reduce costs and improve efficiency in freight management.

Join 30,000 Plus Subscribers!

To subscribe to our blog, enter your email address below and stay on top of things. We'll email you with a confirmation of your subscription.


Subscribe!

Send this to friend