For a business, it is crucial that performance is assessed at multiple levels to evaluate their success in reaching targets. According to Business Gateway, knowing how various areas of the business are performing helps owners and managers to assess their business’ strengths and weaknesses. Such assessment exposes business owners to the factors that they need to work upon or change completely to help the company succeed.
It is for this reason that businesses across the world use KPIs to manage their performance effectively and proactively. Also known as Key Performance Indicators, KPIs are measurable values that demonstrate how effectively a company is achieving key business objectives. However, KPIs can vary according to the industry and which part of the business the managers are looking to track.
Here is a list of 3 top KPIs that courier services should track.
3 KPIS FOR COURIER SERVICES
- On Time, Full Delivery: If you are running a courier service, this KPI is highly important. It is the basic measure of timely delivery in its complete condition. The service needs to be extra stringent and consider a delivery late if they are unable to deliver the entire order on time, in the full quantity, and in its original condition. It is also important to take into account the rate of returns due to shipment damage or shipment error, added an expert at Key Software Systems.
- Average Late Deliveries: Every business has certain areas that are a leading cause of delays in the delivery of products to the customer. Tracking late orders helps the organization understand the potential negative effects that late deliveries can have on the business, taking into account various types of orders. Take advantage of a dispatch software that gives deep insight into every step of the delivery process. This will help a courier service understand the causes of delay, so that they can take measures to mitigate the risk of losing customers.
- Accurate Order Picking: This KPI is related to tracking warehouse operations, which are as crucial as the delivery process. A customer will only be frustrated with your services if they end up with the wrong parcel at their doorstep. This is often the result of order picking errors, caused by inefficient warehousing operations, says an article by Adaptalift Hyster. A lot of time and effort is wasted in tracking the correct product and re-sending it to the customer, after they have placed a complaint.
Manually tracking the KPIs at different levels of the business is nearly impossible. Therefore, utilizing a courier and dispatch software that digitally records and analyzes data to spot errors and fix problems proactively is the best course of action.