Key Performance Indicators in Transportation Management

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Managing Transportation operations is a challenge for supply chain managers and transportation managers. Without business metrics controlling the performance of business operations in supply chain organizations and transportation is nearly impossible. Key performance metrics help managers to get insights in managing transport operations.

Here are the top freight KPIs in Transport Management

  1. Freight cost per unit shipped: This KPI is used to understand the overall freight spend for your organization
  2. Transportation time: Transportation time is measured to the expected shipment arrival versus the actual delivery time for each shipment.
  3. Freight Cost vs Claims: This KPI is used to know total loss in freight claims by the overall freight costs helps measure safe delivery for each shipper and carrier.
  4. Trailer Utilization Rate: This KPI is used to measure trailer utilization and this indicates loading optimization concerns or problems and allows for better load planning. If shippers are underfilling trailers, they are overspending funds.
  5. Truck turnaround rate: It is used to calculate Truck round time by measuring the average time it takes between the arrival of the truck and its exit.
  6. On-time pickups: It is used to calculate on-time pickups by the number of pickups made by the total number of loads sent in a period. With this, you can evaluate the performance of the carrier
  7. Cost per Pound: It is used to calculate the cost per round of a truck by measures gross net with total weight moved each month/quarter to show the buying and usage patterns to customers.
  8. Delay of shipments: It helps to display the number of shipment  are delayed
  9. Shipment cancellation: It helps to know the shipment cancellation.

Keep the focus on processes and improve them by using the KPI metrics, which is a smart business strategy and will benefit most of Supply chain Organizations.

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About fruiSCE® Transport Management

fruiSCE® TMS is a comprehensive solution for supply chain organizations with a focus on transport and logistics operations.  Key features include transport order processing, shipment management, freight management, document management, and all transport operations suitable for all parties in logistics.