{"id":644,"date":"2016-02-21T13:07:39","date_gmt":"2016-02-21T12:07:39","guid":{"rendered":"http:\/\/en.advancedfleetmanagementconsulting.com\/?p=644"},"modified":"2016-02-21T13:07:39","modified_gmt":"2016-02-21T12:07:39","slug":"essential-keys-to-choose-the-right-metrics-for-your-logistics-business","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2016\/02\/21\/essential-keys-to-choose-the-right-metrics-for-your-logistics-business\/","title":{"rendered":"Essential keys to choose the right metrics for your logistics business"},"content":{"rendered":"<p><a ref=\"magnificPopup\" href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/02\/claves-paa-escoger-metricas.jpg\"><img loading=\"lazy\" class=\"aligncenter wp-image-645 size-full\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/02\/claves-paa-escoger-metricas.jpg\" alt=\"metricas\" width=\"700\" height=\"345\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/02\/claves-paa-escoger-metricas.jpg 700w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/02\/claves-paa-escoger-metricas-300x148.jpg 300w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<div class=\"section post-body\">\n<p style=\"text-align: justify\">Do you want a generic <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/02\/14\/essential-logistics-kpis-that-you-should-consider-for-your-business\/\" target=\"_blank\" rel=\"noopener noreferrer\">key performance indicator<\/a><\/strong><\/span> suitable for any kind of business? It doesn\u2019t work like that.<\/p>\n<p style=\"text-align: justify\">Those who have already implemented an <strong><span style=\"color: #0000ff\"><a style=\"color: #0000ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/02\/07\/how-to-choose-a-transportation-management-software-for-your-company\/\" target=\"_blank\" rel=\"noopener noreferrer\">optimization software<\/a> <\/span><\/strong>in their companies undoubtedly realized that these solutions will only function properly if they are configured with the right indicators, and these KPIs must be defined from the core business of the company.<\/p>\n<p style=\"text-align: justify\">In this way, your KPIs should reflect accurately what the\u00a0company wants to achieve. This applies to any business, and it certainly applies to the <strong><span style=\"color: #0000ff\"><a style=\"color: #0000ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/01\/12\/7-challenges-logistics-managers-face-everyday\/\" target=\"_blank\" rel=\"noopener noreferrer\">logistics\u00a0business<\/a><\/span><\/strong>\u00a0and <strong><a href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/01\/12\/fleet-management-best-practices\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"color: #0000ff\">fleet management<\/span> <\/a><\/strong>as well.<\/p>\n<p style=\"text-align: justify\">If you fail to have accurate indicators you might lose the right track. That\u2019s why an alignment between your company\u2019s goals and its KPIs is so important.<\/p>\n<p style=\"text-align: justify\">Martin Murray, logistics and <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/02\/07\/how-visibility-in-your-supply-chain-can-help-you-overcome-a-crisis\/\" target=\"_blank\" rel=\"noopener noreferrer\">supply chain<\/a><\/strong><\/span> expert, explains in his <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/logistics.about.com\/od\/tacticalsupplychain\/a\/Supply-Chain-Performance-Metrics.htm\" target=\"_blank\" rel=\"noopener noreferrer\">blog<\/a><\/strong><\/span> that \u201csome companies use a range of metrics that they require their logistics department to adhere to, but do not realize that in doing so, other parts of the supply chain may be negatively impacted.\u201d<\/p>\n<p style=\"text-align: justify\">Gary Marion, another logistics and supply chain specialist, in his\u00a0<strong><span style=\"color: #0000ff\"><a style=\"color: #0000ff\" href=\"http:\/\/logistics.about.com\/od\/tacticalsupplychain\/fl\/Supply-Chain-Metrics.htm\" target=\"_blank\" rel=\"noopener noreferrer\">blog<\/a><\/span><\/strong>\u00a0states\u00a0that \u201cevery metric gives a slightly different view of your supply chain and your company. Ultimately, it\u2019s up to you to prioritize which supply chain metrics are important and how they will be used.\u201d<\/p>\n<p style=\"text-align: justify\">It is clear that there are several issues at stake before choosing the <strong><span style=\"color: #0000ff\"><a style=\"color: #0000ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/01\/12\/the-importance-of-metrics-for-logistics-managers\/\" target=\"_blank\" rel=\"noopener noreferrer\">right metrics<\/a><\/span><\/strong> and KPIs for your business.<\/p>\n<p style=\"text-align: justify\">After looking at the <span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/01\/12\/fleet-management-best-practices\/\" target=\"_blank\" rel=\"noopener noreferrer\">best practices<\/a><\/strong><\/span> and experiences available in the supply chain industry, we believe these are the essential keys to choose proper metrics for your business:<\/p>\n<ul>\n<li style=\"text-align: justify\"><strong>Easy to Understand\u00a0<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify\">All your logistics department should be able to understand each and every one of these indicators. This contributes to a more precise collection and review process, and boosts your team\u2019s motivation, as they are able to visualize more clearly the goals of their company.<\/p>\n<ul>\n<li style=\"text-align: justify\"><strong>Measure what is Important<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify\">\u201cSome metrics can look to be important, but when the data is analyzed, the relevance of the metric can be tenuous. It is vital that a performance metric on which business decisions are made, should measure important data,\u201d says Mr. Murray.<\/p>\n<ul>\n<li style=\"text-align: justify\"><strong>Is It Actionable?<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify\">\u201cMetrics should identify and make your company take corrective actions, if needed,\u201d holds Mr. Marion.<\/p>\n<p style=\"text-align: justify\">&#8220;For example \u2013 he adds &#8211; if a metric shows a number of orders processed per day, then that metric should be measured against a target and identify a corrective action, such as increase the number processed.&#8221;<\/p>\n<ul>\n<li style=\"text-align: justify\"><strong>Easy to Collect<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify\">In some cases, companies use some KPIs that require an extra effort to collect, and even move your employees away from their primary tasks in order to account for these indicators. \u201cAvoid these types of metrics and find easier to collect data that can easily be output from your materials resource planning system or other databases,\u201d says Mr. Marion.<\/p>\n<p style=\"text-align: justify\">So, how are you defining your own logistics metrics? Are they accurate enough? I appreciate your experiences with logistics and fleet management KPIs. You can write a comment below.<\/p>\n<\/div>\n<p style=\"text-align: justify\"><a href=\"http:\/\/www.driv.in\/en\/home-3\/\" target=\"_blank\" rel=\"noopener noreferrer\">driv.in<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you want a generic key performance indicator suitable for any kind of business? It doesn\u2019t work like that. Those who have already implemented an optimization software in their companies undoubtedly realized that these solutions will only function properly if they are configured with the right indicators, and these KPIs must be defined from the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[67,68],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/644"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=644"}],"version-history":[{"count":0,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/644\/revisions"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}