9 Key Topics to Understand to Frame A Shipper’s Mind for Effective KPI Management with a 3PL


This is the first post in an ongoing series on effective KPI management from third party logistics consultant, Chuck Intrieri, of The Lean Supply Chain. . It can take months to negotiate a complex SLA/KPI document, as you go back and forth with your logistics provider so the document becomes a “win-win” for both parties. 9 Key Topics to Understand to Frame A Shipper's Mind for Effective KPI Management. Effective KPI Management Requires Periodic SLA/KPI Review.

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Logistics KPIs Case Study: Whirlpool’s Supply Chain and Logistics Success Driven by Effective KPI Implementation


We conclude our ongoing series in talking about effective KPI management by giving you a real live Logistics KPIs management case study from Whirlpool's engagement with a logistics service level provider. Also monitored were Whirlpool supplier SLA/KPI agreements.

7 Strategic Performance Business Practices with 3PL KPIs and 4 KPI Problems to Solve


We began our series first writing about the 9 key broad and somewhat soft topics to understand in effective KPI Management. Frequent 3PL KPIs reviews will detail performance appraisal of each KPI set by the 3PL and shipper/customer. Scorecard analysis, % to all goals, and critical path: “What KPI is holding us back from overall success? KPIs are reviewed to ensure the IT SLA/KPI is effective for both parties. KPI Program Positive Reinforcement.

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The Best LTL KPI for Measuring Freight Damage

The Logistics of Logistics

The best LTL KPI for measuring damaged shipments is simply the percentage of damage free shipments delivered. 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. LTL KPI – Damage Free Shipments. To calculate the damage free shipments KPI, simply divide the number of damage free shipments by the total number of shipments.

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The Best LTL KPI for Measuring Cost

The Logistics of Logistics

The best LTL KPI for measuring cost performance is cost per pound. The less than truckload (LTL) cost per pound KPI is easy to calculate (see below). 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. LTL KPI – Cost per Pound Calculation. To calculate the cost per pound KPI, take the cost of the shipment and divide it by the shipment weight (pounds).

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Managing a Third Party Logistics Partnership

The Logistics of Logistics

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. You should also have a Modification Clause wherein you can modify the SLA/KPI/ Contract and Prices in 30-60-90 days. 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.

The Best LTL KPI for Measuring On Time Performance

The Logistics of Logistics

The best LTL KPI for measuring on time performance is simply the percentage of on time shipments. LTL KPI – On Time Performance Calculation. To calculate the on time performance KPI, simply divide the number of on time shipments by the total number of shipments. Insights from On Time Performance KPI. The on time performance KPI will flag the late deliveries. Does your company use the KPI described above?

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Value-adding Features of a Great Freight Rating System Within a TMS


Freight rating software is a necessity for shippers and 3PLs. There is more at stake in the choice of a freight rating system. When shopping for a Freight Rating Software System with TMS, look for key points that will add value and provide additional benefits for shippers.

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Service Level Agreement Defined

The Logistics of Logistics

Sometimes, the Logistics provider has their own SLA/KPI that they want to use with any customer, but negotiation is still in order. Some Logistics providers use time/percentages to implement the SLA/KPI based on the customer’s volume. An SLA/KPI is typically used when there is a Logistics provider contract to co-sign. How do you write an SLA/KPI? What sections are typically in an SLA/KPI?

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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. Check out another great KPI definition at About.com. I sometimes use the terms KPI and metrics interchangeably, but they are not the same. The New Logistics KPI – Measuring Customer Service.

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LTL Carrier Scorecard with Key Process Indicators (KPIs)

The Logistics of Logistics

The LTL carrier scorecard with key process indicators (KPI) is an excellent tool for measuring and managing LTL performance and LTL carrier performance. 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. To measure success in these four areas, a simple, transparent KPI is created for each attribute. Be sure to measure all damage not just freight claims filed.

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Seeing the Bigger Picture: How a Global Trade Network Can Create More Accurate KPIs

Talking Logistics

Cost (Line Haul RPM): The rate per mile that is being paid for freight movement before fuel and other incidental charges. When glancing across the different metrics, routing guide compliance may also reflect a decline, which means the load planners are deviating from the established routing plans in order to cover freight. He leads a team of logistics managers, coordinators, and LaaS Directors handling $2 billion in annual freight movement.

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Overcoming Complacency: How to Drive Even More Supply Chain Metric Success

Talking Logistics

Much like the “in the green”/”in the red” problem cited above, if they feel like they’re getting called out for every KPI discussion, they’re not going to be very forthcoming. KPI discussion needs to be an ongoing conversation, not a once-a-month meeting fraught with concern and disappointment. Skilled in Operations Management, Freight, Reverse Logistics, Operational Excellence, and Pricing Strategy.

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

The Logistics of Logistics

Key process indicators (KPI) for the most important aspects of LTL shipping. 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.) 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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9 KPIs to Track for Proper Freight Management


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.

LTL Freight Damage Responsibilities

The Logistics of Logistics

When it comes to LTL freight damage, the shipper and consignee both have responsibilities. LTL Freight Damage – Shipper Responsibilities. Proper packaging requirements are outlined in the following two publications: National Motor Freight Classification. LTL Freight Damage – Receiver Responsibilities. Shipper’s Help Desk – Freight Claims. The Best LTL KPI for Measuring Freight Damage. Questions : Does your company have a lot freight claims?

Record Semiconductor Sales Welcome News as Supply Chain Gears Up for Increased Volumes

BluJay Solutions

A surge in semiconductor sales is welcome news indeed for freight forwarders in particular, who have struggled with overcapacity in air and ocean freight in particular and weakened rates.

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4 Steps for Establishing Healthy 3PL Relationships!

Supply Chain Game Changer

The key performance indictators must be clearly defined and include the expected service level and the way in which the KPI is going to be calculated. Freight and Logistics Guest Blog Post Supply Chain Management 3PL Distribution Logistics Freight Management Logistics

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There’s a Less Frustrating Way to Negotiate Freight Contracts

Logistics Bureau

When you negotiate freight contracts though, there’s a lot more to consider (and haggle over) than the price per unit/tonne/pallet that you wish to transport. Of course price matters when you negotiate freight contracts. You Need Intelligence to Negotiate Freight Contracts.

Patterson Pope’s 5 KPIs for Managing a Warehouse

The Logistics of Logistics

Inventory tracking software is an excellent way to keep a close eye on inventory and measure it as a KPI. To meet your KPI goal, do periodic inventory audits to see how they measure against routine tracking. Similarly, storage itself is an important KPI for improving warehouse management practices. This KPI is specific to actual storage systems. In general, the storage KPI covers the types of storage you currently use and have access to.

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Making the Case for Managed Transportation Services


Survival of the fittest” is the mantra of today’s freight market, as driver shortages, capacity imbalances, federal government regulations and robust economic conditions continue to impact transportation costs. Making the Case for Managed Transportation Services.

Employing this S.M.A.R.T. Technique with a Logistics Company to Create Total Stakeholder Satisfaction


In our first post in the series, we set the mindset of the shipper by going over the 9 key topics to understand about effective KPI management and followed that post with the 7 strategic performance business practices to track and 4 KPI problems to solve. . Cerasis is squarely focused on transportation management through technology and managed services , however, there are logistics companies who offer fulfillment, warehousing, freight forwarding, and more.

The 7 Habits of Highly Effective Shippers

The Logistics of Logistics

Not technology for the sake of technology, but value added tools that streamline the process for moving freight. Most Popular Posts Transportation 3PL best shippers continuous improvement good shippers habits of best shippers highly effective shippers KPI Logistics LTL screwed up shipments shipping process shipping technology The 7 Habits of Highly Effective Shippers Highly Effective Shippers.

What Are the Top Warehouse Management KPIs Every Supply Chain Exec Should Measure


Vendors need to have access to the latest inbound freight routing guides and more. Incoming freight should be tracked in terms of volume put away per employee per hour. This KPI is derived by dividing the total number of shipped orders by the number of planned shipments.

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Reverse Supply Chains: Best Practices for Better Asset Recovery


Efficient processes are a major part in keeping an eye on reverse supply chains, as keeping track of Key Performance Indicators (or KPI for short) can only help a company predict of what’s to come in terms of sales.

Logistics Analytics – Beyond KPIs on Tender Acceptance and Carrier Performance

Supply Chain Collaborator

This results in higher levels of LTL and consolidated freight and the corresponding complexity in terms of allocating shipping costs across numerous customers. Whereas, analytics-derived allocation decisions can ensure shippers are properly pricing goods and charging appropriately for freight. Freight cost allocation is but one of the many complex logistics management challenges clarified by the application of Big Data practices and logistics analytics.

A great leap forward: Quintiq joins Dassault Systèmes

DELMIA Quintiq

Remember that one of the things that sets Quintiq apart is our KPI-based planning system, meaning that we place business goals at the center of ever planning decision. At Quintiq, news is often greeted with excitement. That’s because it is usually great news.

How Does Procurement Create Value? Insights from CPO Speakers at Zycus Horizons Conference

Supply Chain View from the Field

” Based on that feedback, Chris asked a different question: “Looking out to 2025 –will we be using the same KPI’s as we do today? But vendor management and KPI’s will be impacted – and we need to evolve beyond saving money. Branching into process reengineering and KPI’s will be important. Also more end to end KPI’s – our own inventory – but don’t have supply chain lead-times on end to end. I can see the light that will maybe be a freight train someday.

The 4 Key Processes Enabled by a Transport Management System (TMS) in 2015


Visibility : A TMS makes it easier for a logistics manager to have freight visibility along the way so that everyone involved, including the customer knows exactly where the shipments are at any time. Freight Technology TMS Transportation transport management system

The Do’s and Don’ts of Going to Market with Your Transportation RFP

Talking Logistics

Only motivation is to save money on freight rates. RFP’s give you the opportunity to negotiate/award freight rates that will have a major impact on your budget for the year. Think outside the box, and look for opportunities to leverage continuous moves or dedicated operations to lower freight expense. We also ask about Asset/Broker % goals, KPI’s, etc. KPI’s.

Are You Paying 18% More By Ignoring These 3 Logistics Strategies?

4WL Consulting

How do I set KPI’s for meeting or exceeding future goals? I’ve found that when you do an assessment to determine market rates, a company with a transportation spend of $350,000 can save up to $63,000, if your spend a million on freight, the savings can be some serious money!

Top Logistics Articles of 2015


We write to five main categories on the Cerasis blog: Manufacturing, Supply Chain, Logistics, Transportation Management, and Freight. Manufacturing kicks off the supply chain, there are various logistics functions with the supply chain and then even more specific functions with strategic transportation management that has many tactics involving freight. 7 Strategic Performance Business Practices with 3PL KPIs and 4 KPI Problems to Solve.

Low Tech Can Still Deliver High Returns


For example, at TMC, white boards are at the center of our daily discussions that help to drive customers’ key performance indicator (KPI) programs and provide status updates on active projects in the pipeline. A key part of our daily discussions is customer KPI metrics.

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Top 5 features to look for in a Transportation Management System (TMS)


Strategic Freight Management: Arrange bids by carriers for long-standing contracts based on Risk, Capacity and Cost.Selection of Carrier: Arrange carriers for each shipment considering allocations, business shares, and costs.

Supply Chain Foundation: Built on the 4 Strong Logistics Pillars

The Logistics of Logistics

Spending a little extra with the right freight provider or logistics firm could save you hundreds of thousands of dollars down the line. Key performance indicators (KPI) can help you in figuring out whether or not these pillars are in place in your company and how strong they are. If you do not have KPI’s in place, now is the time. Tony specializes in Supply Chain analysis, Freight management, and Logistics improvements.

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Are You Paying 18% More By Ignoring These 3 Logistics Strategies?

4WL Consulting

How do I set KPI’s for meeting or exceeding future goals? I’ve found that when you do an assessment to determine market rates, a company with a transportation spend of $350,000 can save up to $63,000, if your spend a million on freight, the savings can be some serious money!

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