Supply Chain KPIs for Importers to Track: Drayage Costs, Turn Times, Fees, OTIF, & More

Posted by Port City Logistics on Nov 2, 2021 12:50:12 PM

Many shippers mistakenly confuse “supply chain KPIs” and “metrics,” using them interchangeably when there are distinct differences between the terms. While all KPIs represent metrics, not all metrics end up as KPIs. A metric simply refers to a specific data point for shipment operations. A KPI, by contrast, refers to a metric derived from data and analysis that points to a company’s key business objectives. Managing a diverse freight carrier network is a vital aspect of transportation management. Having a diverse carrier network made up of multiple delivery modes remains key for supply chain stability, but it is critical to monitor the following KPIs to ensure your overall performance is in line with stated goals.

1. Vessel Discharge to Final Delivery Cycle Time

When considering which supply chain KPIs to monitor, departure times and delays at ports can be critical to track at times. Regular delays and patterns in loading and unloading issues at ports can help managers pinpoint possible problems areas. Vessel discharge times and final delivery times can prove vital for ocean and truckload freight management. 

2. Per Diem Costs as a Percentage of Sales

Specific fees and surcharges typically occur as part of the cost of shipping. These expenses usually end up being included in shipping rates and service charges. However, excessive per diem fees can eat into profits. Comparing these surcharges to what each load brings in as profit can help managers better understand per diem expenses and their impact on the supply chain.

3. Demurrage Costs as a Percentage of Sales

Like per diem fees and other surcharges, the cost of demurrage is another supply chain KPIworth monitoring. Comparing demurrage expenses against profits and earnings can help ensure these fees are not eating into profits more than necessary. 

4. Average Container Turnaround

With ocean freight shipping management, the turnaround time for container use and return can have a tremendous impact on the importer’s profits and losses. The more containers sit empty for prolonged periods of time, the more fees are generally incurred and the less capacity carriers can attain. All of this translates into more costs and lower profits.

5. On-Time, In-Full Rates

The most noteworthy supply chain KPIs focus on specific aspects of management, transportation, and import logistics. On-time and in-full deliveries remain among the most important supply chain measurables because countless studies have shown late deliveries and missing or damaged products are among the most commonly cited reasons for consumers choosing another company for their needs. Therefore, managing the OTIF KPI is critical for achieving continued growth and success.

6. Freight Awaiting Unloading/Loading at Destination/Origin

Keeping track of load and unload times at ports of departure and arrival provides vital information about supply chain metrics and processes. These KPIs will help managers and directors streamline processes and easily see what legs of the transportation route experience the most significant frequency of delays. 

7. Capacity Utilized for Owned Assets

Asset management can also prove vital to optimal supply chain management. From maximizing capacity and available cargo space to properly designating and utilizing assets, supply chain managers must track utilization throughout the network. Poor management and asset replenishment can lead to disruptions and delays with warehouse management and shipments—both domestic and international. 

8. Outsourced Versus In-House Warehousing Costs

Keeping up with monitoring and analyzing key metrics and supply chain KPIs presents a challenge for many transportation directors. Keeping tabs on in-house costs and processes compared to outsourced and 3PL-provided services can ensure a long term positive relationship between the two parties.

9. Late Ship Arrivals

With ocean freight management, managers must know when ships get delayed. Late arrivals delay the entire shipping process and create delays and disruptions from that point onward throughout the whole supply chain. Proper management of this metric allows for fast and reliable adjustments in real time to best compensate and adapt to the reality of the shipping situation.

10. Total Average Lead Time for Container Procurement

The final example of a critical supply chain KPI to monitor is the average lead time related to container procurement. The longer it takes to find and locate empty containers, the greater overall capacity will suffer. And when capacity becomes an issue, so too does the ability to make good on the promise for fast, reliable, and on-time delivery.

Track the Right Supply Chain KPIs for Increased Import Efficiency

At the heart of shipment tracking and optimized supply chain import efficiency lies the ability to accurately and accurately track key metrics with sound KPIs. Staying on top of supply chain metrics can prove beneficial throughout the network and significantly improve delivery success rates, customer satisfaction capacity availability, and bottom-line profits. Contact Port City Logistics today to learn more.

Topics: Supply Chain Efficiency