In the highly competitive transportation industry, you’ll want to continually assess your business performance to remain profitable. Tracking and analyzing key metrics is effective for achieving this goal, as it provides valuable insights into efficiency, safety, and customer satisfaction.
In this article, we’ll discuss the essential metrics that you need to monitor regularly. To help you set attainable objectives for your business, implement these metrics in your transportation business plan.
1. On-Time Delivery Rate
This metric measures the percentage of shipments delivered on time, as promised to your customers. A low on-time delivery rate can lead to customer dissatisfaction, lost business, and even contractual penalties. Therefore, it is important to track and improve your on-time delivery rate to ensure customer satisfaction and retention.
2. Transit Time
Transit time is another critical metric to track for your transportation business. This metric measures how long it takes for a shipment to travel from one location to another. By tracking transit time, you can detect bottlenecks in your operations and work to reduce transportation time, which improves customer satisfaction and increases efficiency.
3. Cost Per Mile
Tracking your cost per mile is essential to understand the profitability of your transportation business. This metric measures the cost of transporting one unit of goods per mile, including fuel, labor, and maintenance costs. By tracking this metric, you can identify cost-saving opportunities, such as optimizing routes, reducing fuel consumption, or negotiating better rates with suppliers.
4. Empty Miles
Another crucial metric to monitor is empty miles, which are the miles that a truck travels without carrying goods. These miles can be costly for your transportation business, as they waste fuel and reduce profitability. By tracking the number of empty miles, you can look for ways to reduce them, such as increasing backhaul trips, optimizing routes, or finding new customers in the same location.
5. Revenue Per Load
Revenue per load measures the revenue generated per shipment or load transported. By tracking this metric, you can identify high-performing routes, customers, or products that generate the most revenue for your business. This metric can also guide your pricing strategies, as this provides a clear picture of the profitability of each shipment.
By monitoring these important metrics, you can identify areas in your transportation business that can be improved and optimized. Utilize and adjust these metrics when needed to make data-driven decisions and remain ahead of the competition.