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Archive for May, 2015

May 16, 2015

keysoftwaresystems

AllNewsletterPress Release

DISTRIBUTION MANAGEMENT SOFTWARE AND KPIS THAT MATTER

DISTRIBUTION MANAGEMENT SOFTWARE AND KPIS THAT MATTER 0

Do you need an entire folder to fit in the KPIs for your logistics firm? Do you have a compulsive habit of adding to your repertoire of KPIs, so that comprehensive performance indicators can be captured? If this is the case, it is indeed time for a reality check. When it comes to indicators for performance, it is all about quality and not quantity. Instead of having scores of indicators for assessing performance, it is better to have a handful that really matter. And depending on the indicators arrived at, you need professional distribution management software to see you through.

QUESTIONS TO ASK YOURSELF BEFORE DETERMINING PERFORMANCE INDICATORS

  • Are there relevant industry standards to cater to while determining performance indicators?
  • Am I assessing the right things?
  • Are all my parameters equally valuable or should I consider some to be more important than others?
  • Have I got my definitions right?

Once you have found answers to these questions, you can choose from the different approaches available.

THE DIFFERENT KPI APPROACHES A LOGISTICS COMPANY CAN UNDERTAKE

Depending on the focus and the nature of products to be transported, a logistics company has the following performance determining perspectives:

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  • Excellence in Service Delivery: This focus is specifically useful for companies delivering high value products. For these logistics firms, minimizing delivery time and ensuring on-time delivery is considered as a key determinant for ensuring a competitive edge. And, largely, it is market competition that drives them to excel each time.
  • Supply Chain Cost: The cost incurred when planning and executing the supply chain is possibly the biggest performance determining factor for companies delivering regular commodities to customers. So, if you are an online departmental store for instance, your most important performance indicator would be the cost incurred for processing deliveries.
  • Value Added Delivery: Some logistics companies have special services to offer on delivery, which are charged to the customer. These could be a special packaging, installing the product, removing packaging and so on. And performance will be measured on the basis of revenues generated through them.

Picture

ASSISTING AIDS

Depending on the nature of your business, you need to select a line of indicators that truly matter. And distribution management software has a significant role to play here. A logistics company will need software that increases information visibility, provides quality mapping and tracking information to customers and has built-in features for accounting. Integration with a mobile app can only make things even more convenient and accessible.

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