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

Cerasis

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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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). 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). One of the reasons, to use LTL KPIs is to know whether the shipping function is improving.

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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. 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. Insights from Damage Free Shipment KPI. The higher chance for freight damage drives the need for this LTL KPI.

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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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The Best LTL KPI for Measuring Billing Accuracy

The Logistics of Logistics

The best LTL KPI for measuring billing accuracy is simply the percentage of accurate bills. Regardless of who does the freight bill auditing, shippers should measure billing accuracy with the LTL KPI described in this article. LTL KPI – Calculating Billing Accuracy. Insights from Billing Accuracy KPI. With LTL shipping, inaccurate bills are the norm. The next step is to make the appropriate changes with the internal shipping team and or the carriers.

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

Logistics Key Process Indicators (KPIs)

The Logistics of Logistics

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. A Key Performance 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.

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The 7 Habits of Highly Effective 3PLs

The Logistics of Logistics

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. Logistics Key Process Indicators (KPI). White Paper: The Essential Guide to LTL Shipping Improvement: Action Plan and Metrics for Rapid Transformation. The best 3PLs provide strategic and comprehensive solutions that address all aspects of shipping.

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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. The LTL carrier scorecard becomes a roadmap for driving LTL shipping improvements. 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. The KPI information should be sorted by the carriers used.

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

The Logistics of Logistics

LTL key process indicators (KPIs) for the most important aspects of LTL shipping. 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.

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

The Logistics of Logistics

They will also learn specific actions for reducing LTL carrier shipping costs. 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. 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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The Top Supply Chain KPIs to Know

Cerasis

This difference can have catastrophic consequences for the success of your business, including lost revenue for returning the product, processing the return, shipping out the correct product, and time spent in addressing the issue at your customer service center. The perfect order KPI tracks the overall accuracy and timeliness of each shipment. Perfect Order KPI = On-Time Delivery and Shipment KPI x Complete Order Percentage x Damage-Free Percentage x Accurate Invoicing Percentage.

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The 7 Habits of Highly Effective Shippers

The Logistics of Logistics

Highly effective shippers are successful because they have developed the right attitude and habits regarding shipping. Strategic view of shipping. Highly effective shippers see a well-run shipping function as a competitive advantage. First, the routine, day to day shipping is improved through good written and verbal communication. Highly effective shippers create processes to ensure that their shipping function is effective and efficient.

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. Shipping.

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How to explain OTIF to your 5-year-old

SupplyPike

OTIF stands for On Time In Full and is a key performance indicator ( KPI ) of your products’ supply chain. Freight Shipping Retail + Analytics Supply Chain otif Walmart OTIF

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3 Signs It’s Time To Change Your Delivery Practice

Abivin

The line is used on a regular basis to reassure new employees, but ironically, over time, even senior staff start becoming confused by repeatedly answering the same questions about where to go for a piece of data or how to locate a particular shipping record.

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What Logistics Managers Can Learn from Santa’s Automated Supply Chain

BluJay Solutions

Advanced KPI reporting on supplier performance helps ensure on-time fulfillment with the ability to react quickly to potential issues before they impact the customer. General dropshipping e-commerce global supply chain Innovation Parcel Shipping Supply Chain Software Visibility

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Omnichannel Supply Chain Metrics: What Should Supply Chain Leaders Measure?

Cerasis

This is a simple key performance indicator (KPI), another name for metrics, to track. This KPI should be as high as possible, reflecting accurate inventory available for customers from suppliers. When considering the timeliness of a shipment in this KPI , you can derive an order completion metric. Anytime an order is incorrectly picked and identified prior to shipping , it should be documented and tracked. There is no easy way to say it; single-channel retail is dead.

3 Signs It’s Time To Change Your Delivery Practice

Abivin

The line is used on a regular basis to reassure new employees, but ironically, over time, even senior staff start becoming confused by repeatedly answering the same questions about where to go for a piece of data or how to locate a particular shipping record.

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

Cerasis

Shipping KPIs. Shipping KPIs are comparable to picking and packing KPIs. However, they focus on the total number of items shipped versus the projected number of items shipped. Warehouse managers face many challenges. Customers need to get the products they order.

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

Cerasis

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. . Common pitfalls are not reviewing the SLA/KPI living document frequently enough with a logistics company. A pitfall in practice, is not giving the ACTUAL KPI performance thus making the KPI look good, but not factual.

How Was Your Day?

Blue Ridge

If you review your standard KPI data on a regular basis, it is easy to become stale in the way it’s evaluated. The same thing is true for a KPI like inventory turns. You might find line fill, perfect order, or just total order to total ship as the measure.

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Logistics Analytics – Beyond KPIs on Tender Acceptance and Carrier Performance

Supply Chain Collaborator

Shippers could persuade their customers to simply order more product – less frequently – and they’d ship nice full truckloads. This results in higher levels of LTL and consolidated freight and the corresponding complexity in terms of allocating shipping costs across numerous customers. Collaborator Blog analytics data KPI tendering

Tracking Warehouse KPIs for Maximum Optimisation

20Cube Logistics

KPI#1- Inward. KPI#2 – Picking. KPI#3 – Carrying cost of inventory. KPI# 4 – Inventory turnover. Inventory turnover is another important KPI, closely connected with the cost of inventory. It is how quickly one sells and ship stock out of the inventory.

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

Cerasis

The fundamentals of a Freight Rating System match a user’s shipping and freight characteristics and a carrier’s service and price options. The Cerasis Rater TMS supports LTL freight shipping and handles inbound, reverse logistics , and traditional transportation modes quickly and efficiently.

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Deal or no deal: The impact of Brexit on automotive supply chains

DELMIA Quintiq

Every year, tens of thousands of containers carrying goods are shipped back and forth to the UK. Ships sailing to Rotterdam from Britain would no longer be able to pass through the express lane for customs clearance. Therefore, finished cars are shipped back to EU countries.

Walmart again Raises Chargeback Stakes

Enterra Insights

After all, shave off $20 here for a short lot, $5 there for a cracked pallet and $10 over here for a mangled shipping label, and before long, it can run into real money. In Walmart’s latest move, report Smith and Nassauer, “The retailer wants suppliers that ship full trucks of products to deliver orders within a specified two-day window 87% of the time, up from an 85% rate it targeted previously.

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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? Ron thought they had a handle on their shipping and receiving, but by not occasionally taking a 30,000 foot view of what they were doing, was overlooking some blind spots. Set KPI’s for meeting or exceeding future goals.

WMS and Cycle Counting: How to Reach Inventory Management KPIs

Veridian Solutions

The carrying cost of inventory KPI should also consider added expenses, like labor costs to manage inventory, insurance, and both packaging and shipping costs. Efficiency and accuracy should be tracked through a common KPI. As a result, Warehouse Managers may need to integrate picker performance metrics with this KPI. Greater control and efficiency in modern warehouse management rests on the reliability and accuracy of your inventory management processes.

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SalesWarp Reveals its New Series 4 with Version 4.1

Saleswarp

Whether you are shipping from one location or multiple locations worldwide, delivery invoices will make fulfillment and customer service a snap for retailers and B2B businesses alike. Use our workflow engine to tune processes, KPI’s and dashboards to optimize your business and profits.

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Gartner Session Summary: Design and Implementation of S&OE Process to Deliver Business Benefits

Elementum

The KPIs between these teams never connected, and he described meetings with these cross-functional stakeholders as being like “a game of Marco Polo”, each one shouting out their own view of the KPI while stumbling around trying to connect it to the others’.

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FMCG: ERP’s – how will you cope when yours fails?

Enchange Supply Chain Consultancy

Management by spread sheet was a thing of the past, all transactions were diligently recorded and performance KPI’s produced on a weekly basis. The usual rush to ship out the month-end peak of sales was in full flow when the ERP stopped issuing invoices.

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Putting the “S” Back in the S&OP Planning Process

Supply Chain Opz

This separation is not only structural, in so-called organizational silos, but also based on different Key Performance Indicators (“KPI’s”) for each function.

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3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance

Cerasis

Promise time, lead time, cycle time, transit time, delivery time, unloading time, processing time, queue time, quality assurance time, processing time, turnaround time, receiving time, and shipping time to the customer, (and I bet you could think of more "times" to measure!).

3 fun games to teach your families about 3PLs

DELMIA Quintiq

So try these three games (in no particular order) with your family and give them a taste of the industry basics: Lords of Waterdeep: Storing and shipping adventure. Risk: The KPI war.

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