3 Key Performance Indicators that shippers need but usually don't have

It is essential for shippers to be able to evaluate the company’s strengths and weaknesses. For this, mere assumptions aren’t enough. Let’s take a look at the 3 Key Performance Indicators (KPIs) every shipper must have… but usually don’t. And if they have, this information is in several documents and it’s hard to retrieve when useful for taking decisions and or measure the partners performances.


1.
Partner Performance Indicators

Having data on partners’ performance is something completely new to the shipping industry. It is something that can truly revolutionize the way partnerships are managed. Assessing the performance of carriers and forwarders helps shippers pick a partner who offers the best ROI.

Some KPIs that should be gathered for carriers include:

  • Respect of the volume commitments

  • Carrier’s booking confirmation response time

  • Percentage of container requests accepted and refused

  • Respect of the volume commitment

  • Number of cancelled bookings

  • The average difference between their estimated and actual time of departure and arrival

  • Planned vs actual availability

  • Creation of BL

Similarly, some of the KPIs for forwarders include:

  • Time taken to book a request after creating a shipment file

  • Time taken to make available a Bill of Lading after the cargo has departed

  • How fast booking requests are issued

  • Operational problem notification and transparency

  • Anticipating operational problems

  • Avoiding storage, demurrage, detention costs

When you have access to the right information, you also get the upper hand while negotiating. If your partner does not hold up their side of the deal, you can even ask for your money back.

KPI screenshot 

2. General Performance Indicators

A logistic team’s general performance indicators will give you an idea of the overall way of functioning. The KPIs to look for include:

  • The volume of shipments handled per year/month/week

  • Container capacity remaining with the carrier/ forwarder

  • Balance of accounts

  • Outstanding accounts

This information is also very beneficial to the accounting department. It offers a clear view of where resources are being spent, where they can be saved and where profit margins can be increased.

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3. Internal Performance Indicators

Knowing how your team is performing helps you discover ways to motivate them and improve company performance. Some of the KPIs that can indicate this are:

  •  Time spent on each task

  • Amount of work completed by each team member

  • Number of containers managed by each person

Access to internal performance indicators like the above can also tell managers where additional attention and training is required. In the long run, this can help strengthen the team and reduce unnecessary mishaps.

 

How KPIs Help Strengthen Your Operations

For shipping managers, these performance indicators are crucial to their progress. However, not all of them are easily available. In many cases, general performance indicators can be hard to come by in a comprehensive form. Manually managing the data in excel sheets is time-consuming and has a high risk of human error.

Hence, the importance of automated KPIs. This way, the moment something happens, it is recorded and the data can then be accessed by whoever needs it in real time. Suddenly, it makes data available and accessible.

KPIs, however, are only useful if data is constantly fueling them with reliable data. That’s why a collaborative platform, like BuyCo, is crucial to the process. It allows for data to be gathered organically with no manual entry. For example, KPIs can come directly from your carrier through an EDI. This assures the reliability of that data, rather than making decisions on KPIs furbished by your forwarder. 

BuyCo’s collaborative platform offers all the KPIs listed above, as well as any personalized KPIs you might need. It is a platform that lets you fuel data naturally. 


 

A Free E-book on Automation, Visibility and Collaboration!

Automation, collaboration and visibility. Are these just industry buzzwords or a reality for the maritime supply chain? We have decided to take a closer look to find out for ourselves. We surveyed the market, studied concepts and results from recent studies, developed our own perspectives and have found that these areas are indeed weak points in the maritime supply chain.

Our aim is to provide logistics managers with a clearer view of automation, collaboration and visibility, and give them the right tools and solutions to achieve their goals.

 

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