Gauge & Improve Your Freight Management Performance: Six Critical Key Performance Indicators
In 2015, trucks were responsible for transporting 64% of the tons and 69% of the value in the United States, according to a federal report. Considering that a majority of our society’s goods are transported this way, it’s safe to say that trucking is an essential part of many businesses’ supply chains.
To ensure the safe, timely and cost-effective delivery of goods – from chemicals to industrial products to automobiles – consider conducting a comprehensive review of your freight management process.
To get started, click to download our infographic which defines the six core values or key performance indicators (KPIs) that can help guide the assessment of your freight management performance:
- Freight costs
- Efficiency & productivity
- Route guide compliance
Next, once you’ve identified the right KPI from each of the categories, be sure to incorporate them into your daily business routine. Adjust your reporting to reflect more valuable measurements, like an analysis of service defects, carrier compliance and shipping transit times.
Lastly, use these insights to diagnose your areas of improvement. Is your customer satisfaction suffering? Are you spending too much time or money on a certain task or criteria?
The solution may be incorporating Software as a Service (SaaS) into your business model. This approach is not a new one. In fact, “vertical-specific software represented the largest segment of the worldwide software market in 2014 with $114 billion in revenues,” according to a Gartner report.
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Moving forward, 85% of small business executives are willing to spend more on business software solutions in the next five years – will you be one of them?
If you’re interested in learning more about how CLX Logistics can cut costs for you, view the Helly Hansen freight management case study here.Back to Resources