KPI’s – Do you know what to track and how?
Every growing company talks about data. “We need metrics!” “We need to benchmark ourselves!” “We need to show our customers how well we are doing!” Not to minimize this – collecting this information and being able to build credible business cases in imperative. We always say “data don’t lie” but do you know WHAT to measure and do you have a way to actually gather that data? We’ve all heard the saying “you can’t manage something you can’t measure”.
Companies ship product all over the world daily. Some companies have fully internal logistics teams, others rely on third party logistics (3PL) companies and many have a hybrid of internal and external teams. How do they know if their teams are performing? It can be tricky to monitor the performance of your internal team (especially as it grows), but it gets exponentially more complicated when using external resources.
You can probably come up with a million different parameters to measure – or key performance indicators (KPIs) – but that won’t be productive. Here are four KPI’s we think you should focus on:
- On-time performance
- Loss (theft/shrinkage)
But here’s the trick – do you have systems that can help you monitor any of this accurately? Where does the data come from – reliance on your 3PL to provide that information? As the Internet of Things (IoT) grows, technology solutions continue to present themselves that can allow you to capture the data you need and your customers want and to easily provide that data in a transparent manner that supports your claimed performance.
Smart asset tracking devices can positively confirm delivery times along with providing automated notifications and they can also monitor for damage and tampering. This real time information not only provides an added level of security, it also provides evidence along the “chain of custody” to avoid incurring additional costs for damage or theft that could otherwise be denied by the carrier.
Learn more about technology solutions that can help you achieve the performance goals and customer satisfaction you strive to provide.