Begin monitoring your Logistics Key Performance Indicators (KPIs) to reach your business objectives

Key performance indicators (KPIs) are crucial metrics for the success of your logistics business, especially for those aiming to be among the top logistics companies in India. They offer valuable insights into what's working well and areas needing improvement. Each company has unique goals, so there's no one-size-fits-all approach to track KPIs, and goals may change over time.

Common goals for logistics companies in India, including those aspiring to be top players, often revolve around reducing shipping costs. Managers play a crucial role in this, and employing a transportation management system (TMS) can be beneficial. Before finalizing a strategy, it's crucial to understand your spending on shipping-related expenses. Here are key KPIs for that:

Sales vs. outbound freight costs

Purchases vs. inbound freight costs

Freight cost per unit shipped

Per unit TMS cost

Quote vs. actual invoiced costs

Another critical goal is efficient shipping cost management, and tracking specific freight rates is essential. Here are key KPIs for that:

Perfect order percentage

Average cost of transportation per kilometer

Detentions

Delays

Fuel efficiency assessments

Ensuring quality services is also vital, impacting customer experience. Here are key service performance KPIs:

Damage rate / cargo loss

Claims percentages

Labour productivity

Average loading and unloading times

Planned time in transit vs. actual

To save on shipping costs and avoid supply chain problems, adherence to rules set by carriers and vendors is crucial. Here are key KPIs for compliance:

Load acceptance and rejection metrics

Percent trucking capacity

Freight billing accuracy

Kilometres driven outside prescribed routes

Routing guide compliance

KPIs are indispensable for a successful logistics business, especially for those aiming to be among the top logistics companies in India. Utilize a scorecard to monitor strengths and weaknesses. If you need assistance, CJ Darcl Logistics, one of the top transportation companies in India, experts can help you achieve your goals. Discover the full spectrum of our services and explore how we can enhance your freight operations to maximize the advantages for your business.