Improve Your Logistics With These Key Metrics

Improve Your Logistics With These Key Metrics

Logistics is the invaluable, steady, and silent element of warehouse chains. When everything’s great, nobody notices, and everything just flows as seamlessly and naturally as expected.

However, if even just one cog is out of place, the repercussions will be glaringly obvious. This applies not just to your team, but also to your customers who didn’t receive their custom-designed modern window furnishings or other orders on time.

Yes, most signals that highlight your logistics’ ineffectiveness or effectiveness are usually obvious. However, there are more measurable and granular numbers that you should look into when determining how your logistics is doing and how you could further improve it.

But First, Determine What’s Causing The Holdup

Usually, the holdup is due to existing processes that are not working the way you intended them to. Businesses that experience logistical nightmares normally lack a dedicated integrated or technological system, relying instead on several different solutions that just can’t perform the way a dedicated system could.

Likewise, the lack of supply chain or logistical expertise could adversely impact operations. Fortunately, neither roadblock isn’t difficult to repair or bypass. For starters, you can invest in a technological solution that could help you predict potential logistical hurdles.

It’s harder to keep everything moving along when you need to continuously fix things from behind. With robust solutions in place, you could leverage software integration and manage fulfillment and inventory more effectively. These solutions will also help promote transparency in every aspect of your logistics chain and pinpoint where and why bottlenecks are happening.

Additionally, transparency will highlight specific metrics or measures you could leverage to improve your logistic output.

Logistic Metrics You Should Be Looking At

When attempting to obtain a clearer picture of where and why holdups or bottlenecks in your supply chain are occurring, you should look into these logistic metrics:

Your Throughput

shipping services

Basically, throughput is defined as how much a logistic solution or process, on average, puts out during a specific period. If you’re looking to raise your throughput, you should calibrate components of a solution or process so that you can reduce downtime, touchpoints, and stoppages.

Assess your supply chain solutions and then consider the number of orders that are being put out daily. Review elements like inventory, replenishment, and receiving while working out how your current systems impact your capacity to put out as many products as possible. So while your output is certainly the most obvious signal of success, your throughput adds an additional layer of insight into your logistics that you shouldn’t overlook.

Your Cost Per Order

Check out how much you are paying for systems, space, and labor, and tie those investments to every order you fulfill. You can also look at this as OTC or order to cash, which measures the cost to bring an order to fulfillment.

This process covers the order’s choosing, packing, dispatch, shipping, delivery, billing the customer, and receiving payment. You can use these steps to determine whether you spend too much or inadequate time on fulfilling orders and pinpoint particular steps that require improvements.

Your Accuracy Rate

Record every issue you experience with your orders. Errant items may seem negligible, but you should examine how these errors add up and affect your brand. After identifying where these mistakes are happening, incorporate your discoveries into your logistics to fine-tune it. Check out in-full, damage-free, and on-time deliveries as well as accurate documentation.

Remember that logistics can tell you a lot about the customer experience you’re presenting. So let these metrics tell you what you’re doing well and what you can still improve on to ensure that you make your supply chain as efficient and productive as possible.