Best Way to Meet Logistics KPI

October 23, 2015

Logistics KPI

Data technology is playing a greater role in logistics. 

Postal operators, line-haulers, and freight forwarders need to cooperate in cross-border shipments to optimize shipping performance within their network. KPIs and SLAs need to be managed and monitored, whether the model is 3PL, 4 PL or nPL. Real time reporting on lane performance or logistics network verification is critical. The hasty e-tailer requires timely information in compliance with its customers’ demands. The ability to monitor silence, sequences, and processes online configured to support your business operation is imperative. 

Delivering products to 350 million buyers on a daily basis requires such measures and monitoring.

“To build a reliable logistics network, we need to have a stringent verification system to ensure industry players' service standards, make good use of social resources, as well as incorporate data technology into our operations. In terms of innovation, we are more focused on products related to data technology as an effort to enhance efficiency” -Judy Tong, President of Cainiao 

There seems to be at least three angles to this KPI initiative:

1. BI systems rule the game 

Use your existing BI solutions and integrate the necessary data from endpoints to support visibility. Typically, there are many BI solutions in use, but they lack a method to obtain comparable or cohesive data across the network.

This angle is expensive and slow to implement. You will need to manage copious vendors and coordinate their work. This process takes time, and lacks a competitive advantage when working e-tailers and merchants.

2. Keep the status quo.

Inevitably this option is amiss. Although you may uphold your stance for the time being, eventually competition will run over you. Logistic networks need to be dynamic in order to support the rapid e-commerce growth.

3. Data integration technology in charge

Use an integration service as the core of your data technology, and to integrate different endpoints across the network. And use APIs in real time to provide accurate and comparable data. This will enable the ability to establish the reporting metrics. It creates a competitive advantage and the agility necessary to grow and scale quickly. 

In a networked logistics playground, you need to exchange data between different players in real-time. When doing so, the integration platform collects data about the data transfers. It understands the workflow and rules around the data transfers and endpoints. You now have the ability to monitor all aspects of the data transfer, and ultimately, the performance of the parties involved in the network or lane. A dashboard provides the parties a view into this information.

The integration-in-charge alternative, is a combination of rapid customer/partner/carrier onboarding and collecting of real-time data about business execution. Perfect for the agile retailer/e-tailer. These e-tailers are constantly developing their technology and business operation. They are investing heavily in e-commerce, because it will generate their growth and expansion. Real-time data technology is key to the Omni-channel and logistics network.

With data technology and integration based reporting and monitoring, you can focus on your core business. Logistics companies are not software developers, but they face the challenge of data integration and reporting/monitoring every day. Demand from customers is rising day in day out. With cloud-based integration, you can achieve the agility and transparency that are necessary to meet logistics kpi. 

Innovation comes with the need to change. Data technology is rapidly becoming the key innovator and divergence in the Logistics world. It’s not drones or same day deliveries; its meeting or exceeding your customer’s expectations. That’s what keeps you competitive and grows your business. A win-win for all. 

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