Welcome back. This two-part series is focused entirely on helping you identify issues in your logistical operations by drilling down on the most important goals, and the Key Performance Indicators (KPIs) which enable action towards those goals.
In the previous article, we covered the importance of creating a logistical scorecard to track your success, as well as the KPIs related to managing freight rates as well as reducing overall shipping costs. In the second half, we’ll be looking at some other factors which can also have a significant impact on your logistical costs, as well as some of the US logistics solutions you may turn to.
Critical Goals to Reduce Logistics Costs and The KPIs To Track
III. Improving Your Service Performance
Logistics can have a huge impact on your customers’ experience and overall level of customer satisfaction. This is critical in a globalized world where virtually any operation has numerous competitors. Companies must deliver superior CX to attract new customers while building loyalty among existing buyers.
This includes tracking:
- Delivery on-time-in-full rates (OITF)
- Damage rates
- Cargo loss
- Percentage of on-time pickups and deliveries
- Average times for loading/unloading
- Average downtime or dwell time
- Estimated shipment times vs actuality
- Per-unit revenue yields
Any issues which drag down your OITF numbers must be investigated to keep your customers happy!
IV. Managing Partner Compliance
Global logistics are a complicated network of partner companies, including both the inbound vendors you rely on, as well as your carriers. Issues here can create drags across your entire operation, potentially spilling over to impact productivity beyond logistical issues.
Key factors to track here include:
- Percentage of trucking capacity used per shipment
- Accuracy of freight billing
- Acceptance / rejection rates of loads
- Compliance with routing guides
- Mileage that occurs beyond determined routes (was it unnecessary?)
- Reports sent vs those reviewed
You should seek ways to encourage effective compliance in your partners, otherwise, their mistakes can become your problems to solve.
V. Improving Ecological Issues
Eco-friendliness, such as reducing your carbon footprint, is an important topic. Beyond the need to protect the planet, “going green” can often point towards better and more cost-sustainable solutions – and it’s a strong PR selling point besides.
To reduce your environmental impact, focus on:
- Overall fuel efficiency
- Minimum and maximum fuel use
- Compliance with routing / wasted mileage
- Amount of carbon emissions
- Usage of shipment-consolidation options
- Vehicle idle time while in operation
- Network analysis
In most cases, these are cost-saving methods that are a good idea even beyond the ecological benefits.
US Logistics Solutions Provides the Best in Logistical Assistance
We are one of America’s top choices for improving your logistical efficiency. From improved software solutions to better track your KPIs, to top-level reworks of your logistical systems to improve efficiency, US Logistics Solutions can be your partner for finding across-the-board cost savings.