Do You Use KPIs Effectively?
Most businesses today collect data to set and track key performance indicators, or KPIs. Logistics companies are no different. And with the industry in turmoil these days from the pandemic and global economic stressors, KPIs may be more important than ever.
But do supply chain executives truly understand and fully utilize the KPI numbers they are collecting?
Not as well as they would like to.
Coyote Logistics surveyed 997 shippers and 683 carriers, comprising a variety of business sizes across multiple industries, on their KPI data collection and usage. While 83% of shippers agree that KPIs are an essential part of the supply chain:
- 50% of businesses have a hard time gathering accurate data.
- Only 40% rate their company’s ability to track supply chain metrics and KPIs as “advanced.”
- Only 36% of shippers and 26% of carriers rate their company’s ability to take action on the metrics and KPIs they track as “advanced.”
On the bright side, just 8% of those surveyed considered their company a “novice” at KPI tracking and use.
Other findings:
- Shippers want all of their data in one place, but only 15% are using control tower technology that enables organizations to better understand, prioritize, and resolve critical issues in real time.
- 70% of shippers say that turning supply chain data into actionable insights is time-consuming and challenging.