The Most Important Distribution Center Metrics to Track and Understand

Cerasis

Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. What Distribution Center Metrics Need Tracking?

Examples of How Supplier Quality Management System Implementations Pay Off

Cerasis

We conclude our series on supplier quality management (SQM) today with a look at some case studies and examples of benefits derived from the application of a supplier quality management system. Examples and Case Studies from the Implementation of a Supplier Quality Management System.

Metrics that Matter: Customer Service

QAD

For example, if you consistently backorder items or deliver them late, customers will eventually become angry. Inventory accuracy and minimizing stockouts are very important to customer satisfaction, but a few other metrics also impact the ability to meet customer expectations.

Metrics and Issues to Consider in SQM (Supplier Quality Management) By 5 Big Industries

Cerasis

In the first post our long tme guest blogger, Chuck Intrieri of The Lean Supply Chai n, gave us 5 core metrics to evaluate supplier performance using supplier quality management and a 4 step process to execute. Review of SQM Metrics and Issues Across 5 Core Industries. #1:

Removing the 3 Barriers to Building a Predictive Supply Chain

Growing Challenges Shippers, carriers, terminal operators, freight forwarders and 3PLs spend millions of dollars and. resources each year guessing important operational metrics such as booking allocations or. For example, predictions such as final inland.

Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process

Cerasis

When you choose a company to transport your freight or to supply you with the materials you need to manufacture a product, you are putting your hard work and reputation in their hands. The next posts in the series will break down metrics and issues to consider in SQM by industry and conclude with a case study on the application of SQM. 5 Key Metrics to Use for Scoring Supplier Quality Management (From LNS Research ).

Freight Visibility and Control: Introducing the Freightos Baltic Index (FBX)

Freightos

Freight Visibility and Control: Introducing the Freightos Baltic Index (FBX). Today, the go-to metric for that question is typically Standard & Poor’s 500, the Nikkei, or the Dow Jones Industrial Average (a shockingly poor indicator , if you look closer). A New Freight Index.

Managing a Third Party Logistics Partnership

The Logistics of Logistics

When you have chosen a 3PL partner, insure that you have an effective Service Level Agreement (SLA) with accompanying Key Performance Indicators (KPIs) to manage the Service Level of the 3PL. This SLA/KPI has to be negotiated and agreed upon by you and your 3PL partner.This negotiation time can take three (3) to Six (6) months. If you do not want to start at the 3PL as a contact customer with a SLA/KPIs, you can ship your goods and become a public account.

The Digital Freight Ecosystem Part 2: What’s Bringing Freight Online

Freightos

The Digital Freight Ecosystem. Part 2: What’s Bringing Freight Online. In the first part of this article , Dr. Schreiber observed that freight is still largely offline and examined why freight digitalization has been so complicated. . Freight Market Intelligence.

Guest Post: Ignoring this Performance Metric is Risky

TMC

Examples of the latter include a latent product defect that wreaks reputational damage, or a cyber bug that steals company secrets. A major freight company employs a team of meteorologists that works closely with its flight dispatchers and contingency coordinators, for example.

[INFOGRAPHIC] Optimize Manufacturing Operations with these 5 Golden Manufacturing Metrics

Cerasis

Editor's Note: As a third party logistics company with a focus on better Less-Than-Truckload (LTL) freight management, we have several shippers who are in the manufacturing industry. The 5 "Golden Metrics" to Know in order to Drastically Improve Manufacturing Operations.

Logistics Key Process Indicators (KPIs)

The Logistics of Logistics

If you move freight for a living, you know the importance of logistics key process indicators (KPIs). A KPI is an indicator (a metric) that you have chosen, and agreed with your partners and or customers, that will determine whether you are meeting your critical success factors. Key Process Indicators vs. Metrics. I sometimes use the terms KPI and metrics interchangeably, but they are not the same. Only the most important metrics can grow up to become KPIs.

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The Digital Freight Ecosystem Part 2: What’s Bringing Freight Online

Freightos

The Digital Freight Ecosystem. Part 2: What’s Bringing Freight Online. In the first part of this article , Dr. Schreiber observed that freight is still largely offline and examined why freight digitalization has been so complicated. . Freight Market Intelligence.

Service Level Agreement Defined

The Logistics of Logistics

Each KPI has a specific measure or percentage to be reviewed based on your needs, examples : Inventory Records Accuracy: 98-100%, IT implementations: a specific timeline, Cost Reduction: 5% per quarter based on the Logistics provider’s expertise, Continuous Improvement initiatives: Going beyond the customer’s expectation: 5% improvements each quarter, etc.

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The Best LTL KPI for Measuring Freight Damage

The Logistics of Logistics

Cost, on time performance and billing accuracy don’t mean much if the carrier damages the freight. To minimize freight damage, begin measuring it with the damage free shipments KPI. Example: 112 damage free shipments divided by 113 total shipments equals 99.1% Be sure to measure all damage not just freight claims filed. With LTL shipping, shippers are more likely to experience freight damage, because the freight is unloaded and loaded more than a dedicated full truck.

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LTL Carrier Scorecard with Key Process Indicators (KPIs)

The Logistics of Logistics

Key Process Indicators vs. Metrics. A metric is any standard of measurement (number of carriers, inventory turns, average shipment weight, etc.). A key process indicator (KPI) is a metric that you have chosen that will give an indication of your performance and can be used as a driver for improvement. This means that while all KPIs are metrics, not all metrics are KPIs. Only the most important metrics can grow up to become KPIs. Example: $507.34

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The Best LTL KPI for Measuring Cost

The Logistics of Logistics

The LTL cost per pound is also completely transparent (can’t tweak the numbers) and it provides great insights into a company’s freight spending. Example: $507.34 The KPI gives the shipper an objective measure to compare freight rates, different weights, freight class, carriers and shipping locations. Without the cost per pound KPI, it is difficult to analyze LTL freight costs. Using Cost Per Pound to Reduce Freight Costs.

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The Best LTL KPI for Measuring Billing Accuracy

The Logistics of Logistics

Incorrect freight bills drive the accountants crazy and drive the costs up. Sometimes it has to be passed on to clients, who were already billed for freight or the added cost has to be absorbed by the shipper. Regardless of who does the freight bill auditing, shippers should measure billing accuracy with the LTL KPI described in this article. Example: 61 correct bills divided by 64 total bills equals 95% billing accuracy.

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Webinar: Using LTL Key Process Indicators (February 27, 2013)

The Logistics of Logistics

In this free webinar, participants will learn a methodology for using LTL key process indicators (KPIs). The LTL key process indicators are used to measure and then improve LTL carrier performance. Participants will learn specific actions for reducing costs, billing errors, and damaged shipments. The webinar will also cover ways to improve the number or on time shipments and improving customer service. Webinar topics will include: 1.)

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5 Easy-to-Use Ways to Monitor Supply Chain Health

Talking Logistics

Do you have the right metrics? Metrics show how your supply chain is performing – providing they are the right ones to do the job. Inappropriate metrics can give a false or incomplete picture of supply chain performance. Second, what metrics are the best indicators of performance in terms of these goals? How much are you spending to move 100 pounds of freight? These are examples of metrics that may or may not support your goals.

The Best LTL KPI for Measuring On Time Performance

The Logistics of Logistics

Example: 40 on time shipments divided by 43 total shipments equals 93% on-time performance. White Paper: The Essential Guide to LTL Shipping Improvement: Action Plan and Metrics for Rapid Transformation. The best LTL KPI for measuring on time performance is simply the percentage of on time shipments. The calculation for LTL on time performance is described below.

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21 Vendor Metrics Your Supplier Scorecard Might be Missing

Supply Chain Cowboy

But is your scorecard missing key metrics? It includes a free Excel template that you can modify to match exactly what metrics you want to measure. While some of these metrics might not apply to your business model, there’s definitely a few to add if they measure something important to you and your customers. Of course, you’ll want to be courteous and professional with your feedback, but being open and honest with this metric can go a long way to solving problems between you.

Webinar: How to Measure LTL Carrier Performance and Save Money (November 21, 2012)

The Logistics of Logistics

In this free webinar, participants will learn a methodology for measuring LTL carrier performance. They will also learn specific actions for reducing LTL carrier shipping costs. Webinar topics will include: 1.) Key process indicators (KPI) for the most important aspects of LTL shipping. Actions to improve on time performance, and billing accuracy while reducing cost and damaged shipments. The methodologies that will be described in the webinar will be simple and proven.

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Writing: Working on My Book

Supply Chain Shaman

Interview for Metrics That Matter. My kitchen table is piled high with interviews for the upcoming book, Metrics That Matter. I recently interviewed him for my upcoming book, Metrics that Matter, that publishes in August 2014. How do you define the metrics that matter?

9 KPIs to Track for Proper Freight Management

Cerasis

However, if you know what critical freight management KPIs or key performance indicators to track, you can know exactly how to change processes to decrease costs, which will result in savings for the end user. Federal Power Over Freight Management KPIs.

Inbound Parcel Freight: What Are the Top Considerations for a Shipper?

Cerasis

Managing inbound parcel freight has increased in complexity with the global rise of e-commerce. Amazon has mastered inbound parcel freight management as part of its third-party marketplace, and small and mid-sized shippers are struggling to keep up. While part of the larger scheme for global economic growth, inbound parcel freight has become a top priority for shippers. What’s Causing Problems With Inbound Parcel Freight Management?

Freight Transportation: From Lucy with the Football to a Precarious Equilibrium

BluJay Solutions

Freight transportation professionals have become so used to the abnormal that normal times seem a bit unusual. Freight budgets were blown as shippers scoured the Earth looking for carriers to haul their goods. Uncategorized Freight Market Index Transportation Management

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Top Findings: What Makes a Favored Shipper?

Talking Logistics

What makes carriers prefer to move one shipper’s freight over another’s? According to anecdotal evidence, carriers look at shipper behaviors before deciding which company’s freight they will haul; favored shippers are also rumored to receive better rates.

Iowa 250

Preparing Your Supply Chain for Capacity Challenges

Transplace

For example, you don’t want 80% of your 300-mile runs picking up on Friday and delivering on Monday—that’s certainly not carrier-friendly. Shippers (or their 3PL partners) may have a core carrier base that may be managing up to 60-80% of their freight. Data, Metrics and Communication.

Guest Post by Mike Challman: How to Measure & Improve Freight Management Performance: 6 Critical Key Performance Indicators

NC State SCRC

Optimizing Freight Management with TMS. Logistics providers often create these intelligent software platforms to enhance supply chain visibility and optimize freight management. For example, should your product utilize intermodal transportation methods??

4 Long Term Ways to Save with Less Than Truckload Freight Shipping

Cerasis

So, your organization has decided to explore the benefits and perks of less than truckload freight shipping. The dedicated TMS can further eliminate the frustrations that occur with typical full-truckload (FT) shipments and small package freight by combining all KPIs and available options into a single, comprehensive tool. Overall Costs of Less Than Truckload Freight Shipping. Few shipping processes can be more complicated than managing Less than truckload freight shipping.

Multi Carrier Shipping: 8 Ways to Avoid the Shortsightedness Of Chasing The Least Cost Carrier

Cerasis

When you are looking to choose a carrier when it is time to ship your freight, it might seem obvious to go with the carrier that provides you with the lowest “sticker price.” You have to think about several factors beyond just the freight rate.

Preparing Your Supply Chain for Capacity Challenges

Transplace

For example, you don’t want 80% of your 300-mile runs picking up on Friday and delivering on Monday—that’s certainly not carrier-friendly. Shippers (or their 3PL partners) may have a core carrier base that may be managing up to 60-80% of their freight. Data, Metrics and Communication.

This Week in Logistics News (January 28 – February 1, 2019)

Talking Logistics

Uber Freight: Transportation Facility Brand Managers. As reported by Transport Topics , “Truck drivers using the Uber Freight load-booking app can now rate shippers’ and receivers’ facilities and share feedback on factors such as wait times and amenities.”

Supply Chain Scope: New Study Shows Rise in US Inventories; California Estimated to Improve Freight Efficiency by 25% in 2030

Arkieva

Sustainable Freight Action Plan for California is estimated to Improve Freight Efficiency by 25% in 2030. Targets for 2030 Include: Improve freight system efficiency 25 percent by 2030. Foster future economic growth within the freight and goods movement industry.

The Disintermediation of the Supply Chain!

Supply Chain Game Changer

A truly efficient and effective Supply Chain must include a strategy, plans, business processes, and performance metrics that incorporate disintermediation and the elimination of waste! Think about the typical set of objectives and metrics associated with managing a Supply Chain.

Delivery is the Product: Takeaways from Transplace’s Shipper Symposium 2018

Talking Logistics

The comment caught my attention because later that morning I was going to moderate a discussion with Dan Dershem , General Partner at Supply Chain Ventures, about emerging technologies such as blockchain, artificial intelligence and machine learning, autonomous trucks, and digital freight.