Want to measure the logistics performance of your courier company? Logistics work on multiple areas and they require a lot of tools to make sure that every process is being carried out in the way it should be. This is because these supply chains act as a middle-man between the sellers and the customers. So it is essential to keep this part of this loop in the track to function properly.
In this blog we are going to talk about the ways to measure the logistics performance. Read on…
- How to measure Logistics performance?
- The on-time shipping results
- The capacity of a warehouse
- The order fulfillment
- Proper storage of all the goods
- Managing peak seasons
- Determining the total and the individual cycle time
- Dealing with damaged products
- Determining the total turnover of the employee
- The trailer tracking
- Adjusting to the weather changes
How to measure Logistics performance?
Logistics play an integral part in maintaining an e-commerce business, and hence every warehouse needs to be properly taken care of. A logistics has multiple metric tools that help them measure their performance. Below is a list of ten such metrics that helps them to understand better. Read on…
The on-time shipping results
Delivering a product is the primary function of the logistics industry and on time shipment plays a very important role in it. It is a part of the distribution system that takes care of every item that is coming in and going outside the warehouse. This is a highly crucial process and even a minor delay in the shipment can interfere with its functioning. Hence these logistics needs to be extremely punctual when it comes to shipping. This is an important metrics for measuring the logistics performance, as it can affect the departure and arrival of the product.
The capacity of a warehouse
Among the list of important logistics metrics, the measurement warehouse capacity holds the second position on the list. The above metric monitors the inventory and to keep an eye on all the items as well.
Determining the capacity of the warehouse is very important as it not only gives you the idea of your present items but also helps you to determine its loading time. Accordingly, you can increase and decrease its space. Nowadays there are a lot of digital gadgets to check the warehouse capacity, but a manual verification really doesn’t hurt.
The order fulfillment
The success factor of e-commerce depends on the right order fulfillment. the efficiency of a logistics in the same plays an important role in performance measurement. The logistics need to analyze how quickly are they going to work after the order is placed. The time management along with proper shipment process together caters to successful order fulfillment and any minor inconsideration that cause losses in the business. Manual data handling can cause errors and confusion. These logistics also takes care that your order is successfully delivered without any damage, breakage, or misplacement.
Proper storage of all the goods
The performance measurement of e-commerce logistics is determined by the way they store their products. Proper storage also requires tracking just as order fulfillment in order to ensure accurate deliveries. If a logistics doesn’t have a well-maintained inventory then they will lag behind during fulfilling an order. Other than this, proper storage also allows a timely storage update and can ease out the operational techniques. Losing the track of goods, will not only deplete the product quality but will also cause the logistics to lose its credibility.
Managing peak seasons
Another important metrics for logistics is the capacity to perform seamlessly in peak seasons. This is the area where the most logistics lags behind. Failing to handle orders during rush hours causes a lot of logistics to fail, and faces a huge capital loss. India being a festive country, there are festivals in almost all seasons of the year. It is important to find out what your logistics is capable of. Most of the companies come to a stop at this particular metrics.
Determining the total and the individual cycle time
An appropriate measures of performance for logistics depends on the total and individual cycle time. In order to ensure that your warehouse is running seamlessly, a cyclic pattern is used for tracking. This covers the entire channel of a product. The product is monitored until it is sold. This happens on individual distribution centers. The entire process is done by a detailed audit. As per the final score, you can work on the improvement of the logistics.
Dealing with damaged products
Whether like it or not, but every logistics faces damaged products at some point in their establishment. It is important to understand, that if the damage was an existing one or warehouse damage. This helps in determining the logistics performance and they can become cautious of the future mishandlings.
Determining the total turnover of the employee
For logistics service in India, apart from building a good relationship with its customer base, it is also important to maintain a good relationship with its employees. The people working in these distribution chains often go through hectic schedules. Thus in order to avoid frequent quitting of the employees, a logistics must arrange for a good amount of incentive and other perquisites. This will help in enhancing a good working culture along with ensuring the growth of the organization.
The trailer tracking
The mode of transport is very important when it comes to proper measuring logistics performance. If your logistics use trailers for shipping, you need to make sure that they are in a proper working condition. If it breaks down in the middle of the road, then the issue might lead to a serious problem. You also need to ensure timely maintenance along with proper fuel refilling. A good functioning truck enhances the performance of logistics.
Adjusting to the weather changes
Being a tropical country, India witnesses a myriad of seasons throughout the year. Hence it is important for all the logistics out there to build a proper setup that works smoothly in every season. This is a very important factor and if you do not keep this in mind while setting up your logistics you might end up with a serious problem later. Measure your logistics performance and make sure that your courier company survives in every weather conditions
Does your logistics company fulfills all the above mentioned criteria? Do let us know in the comment section below.