How to Use Transportation Metrics to Drive Profit and Service
More to the Story:
How do you measure efficiency when you are already doing the best job possible? Talk to any over-the-road shipper that finds itself increasingly handcuffed by institutionalized transportation and fuel-related costs and it would likely tell you the "best job possible" doesn't cut it anymore.
Still, Invariably, that shipper may need to look outside its enterprise and consider outsourcing non-core transportation functions to a third-party intermediary or delegating more responsibilities to its core carriers to squeeze out hidden costs and further streamline its supply chain.
Outsourcing transportation functions can provide a more objective and relational context for understanding how transportation best practices can drive improvement elsewhere in the enterprise while simultaneously unbundling hidden efficiencies and costs in an otherwise tight market.
The sidebar below presents three problems and the strategic ways shippers, carriers, and 3PLs can work together to develop a methodology for tracking metrics, analyzing data, and setting goals— while creating a platform for continuous improvement.