Learn how to use KPIs and metrics to evaluate and improve your warehouse transportation modes, such as delivery time, cost, quality, flexibility, and sustainability.

From my experience , when dispatch time gets delayed, then delivery time to customer is impacted. There are few metrics which must be tracked for efficient delivery performance: 1. Pickup Accuracy% 2. Pickup Breach% 3. Delivery Accuracy% 4. OnTime Pickup & Delivery % 5. OTIF% 6. EDD Breach% 7. Total Pickup% (at no. of pickup Attempt) 8. Total Delivery%(at no. of delivery attempts) 9. Delivered Rate% 10. Out for Delivery % 11. Returns rate% 12. Avg TAT to delivery at same city, zones, state and regional and national level These are few metrics that i track which helps to monitor the delivery performance.

How can you measure the success of your warehouse transportation modes?

Warehouse transportation modes are the methods and vehicles used to move goods from one location to another, such as from suppliers to warehouses, or from warehouses to customers. Choosing the right transportation modes can have a significant impact on the efficiency, cost, and customer satisfaction of your warehouse operations. But how can you measure the success of your warehouse transportation modes? In this article, we will discuss some key performance indicators (KPIs) and metrics that can help you evaluate and improve your warehouse transportation modes.

1 Delivery time

Delivery time is the total time it takes for a shipment to reach its destination, from the moment it leaves the warehouse to the moment it is delivered to the customer. Delivery time is a crucial indicator of customer satisfaction, as customers expect their orders to arrive on time and in good condition. To measure delivery time, you can use metrics such as on-time delivery rate, average delivery time, and delivery time variance. These metrics can help you identify any delays, bottlenecks, or inefficiencies in your transportation modes, and take corrective actions to reduce them.

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Vignesh S

Linkedin Top Inventory Management & Warehouse Operations Voice | LSSYB | Strategic Supply Chain Professional | Supply Chain Manager | Operations Manager | Expertise in Warehouse | Logistics | Supplier Management
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From my experience , when dispatch time gets delayed, then delivery time to customer is impacted. There are few metrics which must be tracked for efficient delivery performance: 1. Pickup Accuracy% 2. Pickup Breach% 3. Delivery Accuracy% 4. OnTime Pickup & Delivery % 5. OTIF% 6. EDD Breach% 7. Total Pickup% (at no. of pickup Attempt) 8. Total Delivery%(at no. of delivery attempts) 9. Delivered Rate% 10. Out for Delivery % 11. Returns rate% 12. Avg TAT to delivery at same city, zones, state and regional and national level These are few metrics that i track which helps to monitor the delivery performance.

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Francisco Villapudua

Purchasing Manager @ Founder Sport Group
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Delivery time is a key factor in the supply chain process. Customers could be impacted by having poor on time delivery, or bad product handling, so we must have good suppliers delivering on time and with carriers that will handle and manage your products with a very high standars.

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2 Transportation cost

Transportation cost is the total cost incurred by moving goods from one location to another, including fuel, labor, maintenance, tolls, taxes, and insurance. Transportation cost is a major component of your warehouse operating expenses, and it can affect your profitability and competitiveness. To measure transportation cost, you can use metrics such as transportation cost per unit, transportation cost as a percentage of sales, and transportation cost per mile. These metrics can help you compare different transportation modes, optimize your routes and schedules, and negotiate better rates with your carriers.

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3 Transportation quality

Transportation quality is the degree to which your goods are delivered in the same condition as they left the warehouse, without any damage, loss, or theft. Transportation quality is essential for maintaining your brand reputation, customer loyalty, and inventory accuracy. To measure transportation quality, you can use metrics such as damage rate, loss rate, and claim rate. These metrics can help you monitor the performance of your carriers, drivers, and packaging, and implement preventive measures to minimize the risk of transportation quality issues.

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4 Transportation flexibility

Transportation flexibility is the ability of your transportation modes to adapt to changing customer demands, market conditions, and operational constraints. Transportation flexibility is important for enhancing your customer service, responsiveness, and resilience. To measure transportation flexibility, you can use metrics such as lead time, service level, and mode mix. These metrics can help you evaluate how quickly and reliably you can deliver your goods, how well you can meet your customer expectations, and how diversified your transportation modes are.

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5 Transportation sustainability

Transportation sustainability is the extent to which your transportation modes reduce the environmental impact of your warehouse operations, such as greenhouse gas emissions, air pollution, and noise pollution. Transportation sustainability is increasingly relevant for complying with environmental regulations, improving your corporate social responsibility, and attracting eco-conscious customers. To measure transportation sustainability, you can use metrics such as carbon footprint, fuel efficiency, and emission intensity. These metrics can help you assess how green your transportation modes are, and identify opportunities to implement more sustainable practices, such as switching to alternative fuels, optimizing your load capacity, and reducing your mileage.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you measure the success of your warehouse transportation modes?

1

2

3

4

5

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1 Delivery time

2 Transportation cost

3 Transportation quality

4 Transportation flexibility

5 Transportation sustainability

6 Here’s what else to consider

Warehouse Operations

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How can you measure the success of your warehouse transportation modes?

1

2

3

4

5

6

1 Delivery time

2 Transportation cost

3 Transportation quality

4 Transportation flexibility

5 Transportation sustainability

6 Here’s what else to consider

Warehouse Operations

Rate this article

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