Logistics Metrics You Should Be Watching Closely

When delivering products on time to consumers, it is essential that your supply chain analyze the right metrics and that these metrics be used to increase production and improve customer satisfaction. Through hard data, you can know how well your company is performing. 

On-Time Shipments

Track the number of times that your firm has on-time shipments. If your shipments often do not arrive on time, it may be necessary to provide a different estimate to your customer of how soon shipments will arrive. It is also important to determine why your shipments are often not on time. If there is a sudden drop in the number of shipments that arrive on time, this could be the result of an underperforming truck driver, or you may need to make a modification to the route that your drivers take. In some cases, late shipments will only be a temporary problem until road construction clears up. 

Shipments That Arrive Without Damage

Another important metric to track is the number of shipments that arrive damage free. If your company has a large number of shipments that arrive damaged, it may be necessary to reevaluate how your shipments are being packaged and whether more padding is necessary. However, if only a minuscule percentage of your shipments arrive damaged, it may be time to review whether you are using an optimal amount of packaging. 

Warehouse Capacity

Track the average warehouse capacity. If the number of shipments is frequently increasing and your warehouses are on the verge of being at full capacity, it may be necessary either to modify your shelving to take advantage of unused space or purchase more warehouse space. You may also need to lease warehouse space on a more short-term basis to make up for fluctuations in demand. 

Percentage of Orders That Are on Backorder

Track the percentage of orders that are on backorder. A high percentage of backorders can be an indication that you need to increase production to ensure that you are meeting demand. 

Collect Data Using Automatic Data-Collection Methods

The best way to have the best metrics is to use automatic data-collection technology. In the twenty-first century, your business should not be writing numbers down on pads. Instead, data should be collected by scanning bar codes and by providing receivers with formal methods of reporting damaged shipments. Automatic data collection improves order accuracy and also reduces labor costs. 

You can also observe what similar companies, such as East Coast Driver Solutions, are doing in these areas in order to get more ideas.