How to keep up, as a logistics organization, with today’s thriving global economy where the distances have never been shorter and where the customer is always more used to instant satisfaction? The answer is simple: it’s not a piece of cake. To manage all the ebbs and flows of your business, you need to track essential metrics that you can then visualize on a logistics dashboard. datapine helps you manage your transportation data and visualize it thanks stunning dashboards updated in real time. Tracking these metrics is a hard but necessary task you need to do to improve your on-time final deliveries and ensure customer satisfaction.
On the logistics dashboard template provided above, five metrics are displayed, each bringing valuable information to the transportation management. Monitoring your Loading Time and its Weight is a primary KPI to measure, as it will impact the rest of the transports efficiency. Knowing how long it takes your fleet to be loaded according to its weight will let you evaluate a certain time per ton and set targets of loading time. Optimizing this time will consequently let you load more and transport more; but keep your targets realistic, as a rushed shipment often turns into a crushed shipment. Monitoring it over time will also enable you to identify trends and patterns that can translate a certain difficulty or on the contrary a greater efficiency; it can also give you insights on the functioning of your supply chain. Acknowledging this data is helpful when you want to allocate resources more efficiently. You might as well need such information to dig deeper and categorize it: which orders are the heavier and need more people to be loaded? Are there others, on the contrary, that do not require a lot of workforce but that are more time-consuming when it comes to load them? According to the answers you find, you can then take action with full comprehension of your transportation management.
Your fleet and the people driving it are your number one asset. This is why it is important to maintain it as efficient as possible, by always optimizing the utilization trailer capacity, and reducing at the same time the CO2 emissions in the environment and the fuel consumption. The management of the routes is another important aspect. The deliveries, as a last-step in the completion of an order placed online, are the demonstration of your company’s efficiency and reliability. They should be carried out in the timeframe originally given to your customer and with the correct order undamaged. Without all of these checkboxes ticked, the image of your business might suffer from it.
As a warehouse manager, you need to have an instant overview of your facility, and know in one glance whether your factory is meeting its goals and sustains a reliable performance. To carry this out, you need to track the right metrics and watch the operations. We have aggregated in another logistics dashboard example several KPIs to help you out with that.
Directly impacting the previous dashboard data is the On-time Shipments: if these ones are late, so will the loading be - and with the possibility of creating future bottle-necks- and so will the deliveries be as well. On-time shipment being the ratio of orders placed that are ready to be shipped within the time limit set, it is important to bring it as close to the hundred percent as possible. It indeed measures the performance in the management of your supply chain; if this metric is too low, that may translate trouble in the process between order placement and shipment, due to an increased demand that cannot be answered, or to planning processes that are not up-to-date for instance. The other KPI worthy to measure, once the on-time shipment is managed, is the Order Accuracy. Having a perfect order rate as high as possible will ensure satisfied customers that will come back to your services, and guarantee them to friends and family. A perfect order is an order processed, shipped and delivered without any incident in between placement and arrival at the customer’s. It is on time, neither damaged nor inaccurate. If managed correctly, you will also save money in avoiding losses in returned goods that need to be shipped again.
In this logistics dashboard example, you can also monitor your Operating Costs. These costs are embracing various aspects of your warehousing management, from the expenses covering equipment, energy consumed and material used, to more human-related costs like labor, shipment fulfilment and delivery. These operating costs will give you a great overview of the expenses required to process one order, and adjust the price accordingly so that your warehouse can sustain itself. It will also help you in identify the different entry costs and their evolution over time. Comparing them to the same period a year early can be an interesting source of insight.
Finally, the Total Number Shipments is a great metric to evaluate as it can serve as an indicator in the future: knowing the shipments trends over time enables you to be better prepared in terms of human workforce and inventory storage when rush hours of the day or rush periods of the year are upcoming.
The bottom line of this logistics dashboard being of course to have a better warehouse management that enables smooth operations, increasing efficiency and growing revenue.
To deal with today’s global economy and the many challenges it is made of, logistics companies need to rethink the supply chain and transform it into a data-driven value chain. Our last logistics dashboard template will focus on the supply chain and inventory management.
Starting by analyzing the Inventory-to-Sales ratio, you can have a first performance barometer, as it is a good indicator when it comes to dealing with the unexpected. This metric is the ratio between the value of the items that are in stocks divided by the total value of the sales orders you are fulfilling; the objective is usually to maintain it low. Combine this metric with the next one, Inventory Turnover, and you have a great overview on the financial stability of your business. The inventory turnover will measure the number of times your organization manages to sell its entire inventory in a year. This is a good efficiency index, as well as an important indicator on your demand and how you answer it: good buying practices, good time shipment time management, etc. The higher your turnover rate is, the better. A low turnover rate translates an incapacity in turning your goods into sales.
The third KPI of this logistics dashboard is the Carrying Cost of Inventory, that measures the cost of storing and maintaining your goods in stock. Expressed as a percentage, it evaluates the capital costs, the storage space costs, inventory services costs, and the inventory risk costs. The annual amount of these costs is summed up and divided by the average inventory investment, and it is commonly accepted that it values ranges between 20-25% of the inventory value on hand. Maintaining inventories is necessary for any organization, but the question is to know how much of this inventory is obsolete or in excess? The objective is to reduce these costs, while having a high inventory turnover. At the same time, we can often observe empty shelves and racks in the warehouse, that are increasing the Out-of-Stock rate. This ratio is measured dividing the number of stock-outs when the customer placed the order by the number of items in stock. Keeping this ratio as low as possible is avoiding frustrated customers.
Last but not least, as it is another inventory-related KPI that will tell a lot about your inventory management: Inventory Accuracy. If your electronic version inventory does not match your actual physical inventory, it will harm your business probably more than stock-outs. It is of course normal to have discrepancies, but you must set a target and try as much as possible to keep your inventory up-to-date and this ratio as high as possible. Your business will then appear more reliable and you will avoid wasted money and retain customers.
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