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In business for nearly two decades, third party logistics company, Cerasis, with a focus on transportation management through a transportation management system and managed transportation services, outlines the most important transportation metrics to track which will allow shippers to make better business decisions and improve performance in their latest paper entitled, “The Transportation Metrics that Matter the Most for Shippers to Track to Improve Transportation Performance.”
When the “best job possible” doesn’t feel like you are cutting it anymore, shippers can turn to data as a way to see how a shipper’s tactics and shipping activities create trends. Once a shipper either tracks this data themselves or a 3PL provides key transportation metrics the shipper can then implement and understand transportation best practices. Once understood, the shipper, along with the 3PL, are able to create new strategies and tactics for the logistics side of the business which will drive value and savings to the bottom line.
This white paper will empower shippers with the knowledge around transportation metrics by providing:
How do you measure logistics efficiency and transportation metrics performance indicators when you are already doing the best job possible? Talk to any over-the-road shipper that finds itself increasingly handcuffed by institutionalized transportation and fuel-related costs and it would likely tell you the “best job possible” doesn’t cut it anymore. Still, invariably, that shipper may need to look outside its enterprise and consider outsourcing non-core transportation functions to a third party logistics company (3PL) or delegating more responsibilities to its core carriers to squeeze out hidden costs and further streamline its supply chain. Outsourcing transportation functions can provide a more objective and relational context for understanding how transportation best practices can drive improvement elsewhere in the enterprise while simultaneously unbundling hidden efficiencies and costs in an otherwise tight market. When the “best job possible” doesn’t feel like you are cutting it anymore, you can turn to data as a way to see how a shipper’s tactics and shipping activities create trends. Once a shipper either tracks this data themselves or a 3PL provides key transportation metrics the shipper can then implement and understand transportation best practices. Once understood, the shipper, along with the 3PL, are able to create new strategies and tactics for the logistics side of the business which will drive value and savings to the bottom line. However, a shipper must first know the correct transportation metrics to track and understand. Using the correct set of metrics can lead you to realize if you have the proper balance between service and cost. Using the correct transportation performance metrics will not only let you know your current performance, but will also lead you to change processes to become more efficient. Transportation measures of effectiveness should be considered critical to any improvement plan. Although metrics do vary, we give you a general overview of some common transportation metrics in use today below, but first you must understand how to go about using these metrics.
Follow these basic steps:
If you are not tracking transportation metrics today, we strongly encourage you to implement tracking these core metrics listed above today. It’s common knowledge that analyzing data combined with expertise can truly allow you to affect change in your organization. This is not change for change sake, but rather change to improve your business and impact your bottom line. If you are looking to track your transportation metrics better, feel free to reach out to us for a demo of our transportation management system or for a logistics consultation today.
Source Inbound Logistics and Supplychainmetric.com.
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