Translogistics Blog

Key Performance Indicators That Every Logistics & Warehouse Manager Should Know

April 13, 2017

Written By: Peter Rio

logistics kogs and wheels graphic

 

Most managers understand the importance of creating and constantly measuring key performance indicators (KPIs). In the transportation industry, KPIs are always at the forefront of managing shipments and influencing logistics decisions, but many times they are not always easily calculated. In order to lead a successful business that takes into consideration all points of contact in the creation of a product, you’ll need to track valuable KPIs to maintain a reliable and well-functioning supply chain.

Take a look at what we consider the top KPIs every logistics and warehouse manager should know in order to run a more efficient logistics operation.

  • Scorecard KPIs
    Track scorecard KPIs including: on-time pickup, on-time delivery, claims as a percentage of spend, and claims as a percentage of total shipments. It is wise to conduct your own metric reports on these indicators, as carriers often use exception codes for things like late pickups and messy weather, which can inflate their reports. 
  • Load Optimization & Least Cost Provider
    Track KPIs on load optimization to ensure shipments are consolidated whenever possible and take notes of the least cost provider to confirm facilities are using the correct carrier for each shipment based on cost and service requirements.
  • Spend & Shipment Count
    This should be measured by carrier so that you know exactly who you are giving your business to. Compare this metric with others from the scorecard to judge carrier performance and enhance carrier negotiations.
  • Invoice Accuracy
    A typical rate of improper billing from carriers is somewhere between 5-10% of total invoices. Managing invoices is simple with a TMS and can allow you to measure each carrier's billing accuracy. Remember - incorrect bills cost you time and money.
  • Industry Standards
    Watch industry trends to be on the lookout for more ways to judge the status of your supply chain at every level. KPI projections and forecasts are critical as lawmakers continue to regulate the transportation industry.

How does your logistics management stack up? Once you’re able to gather each of the KPIs above, you’ll gain a bird’s eye view of your entire operation and can take steps to improve areas of your supply chain most critical to your business’s trajectory.

Want more? Read our case study on Misco Products, a successful chemical manufacturing company, to learn which KPIs they boosted through the use of a dedicated 3PL partner and an advanced TMS.

Download Case Study 

Are you interested in logistics management services? Contact Translogistics today.


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For the latest insights, tips and commentary surrounding the logistics industry, look no further. Our blog aims to provide valuable information for anyone interested in best practices, helpful information and insightful observations related to the rapid-moving world of transportation logistics management. Herein you’ll find exclusive thoughts from the award-winning team at Translogistics covering anything and everything related to your transportation logistics processes and plans. Interested in our thoughts on a specific topic? We want to hear from you! Email us at marketing@translogisticsinc.com.

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