Your TMS solution (if it is digitization-ready and up to date with a focus on data analytics), is a treasure trove of information a savvy shipper can harness to drive efficiency and savings improvements. Of course, the TMS alone is just a tool and a shipper will also need experienced guidance and proven expertise of a truly collaborative TMS provider/partner. If your solution meets these criteria, here are the top five important metrics your transportation data can illuminate, providing operations with effective plans for the coming New Year.
With the entire transportation industry being pushed toward achieving Amazon-style levels of track and trace capabilities, on-time pickup and delivery performance has never been more closely scrutinized. Drill down into reporting over the trailing twelve months to review data relevant to on-time performance across your base of carriers. TMS should provide insight into check call compliance, on-time delivery performance, tender acceptance times and more. Review the data by carrier, geography, business unit, origins/destinations or any other criteria to identify problem areas and mitigate lagging performers in 2020.
Delivery Commitment vs. Actual Delivery Times
A data-focused TMS provides visibility into how closely your pickups and deliveries are to meeting your customers’ original delivery expectations. Whether your implementation relies on ELOGS, telematics, visibility solutions (like FourKites, Macropoint, etc.) or any other available transmission methods, it is about delivering your product to your customers in line with the original commitment you made in terms of delivery date/time. Review this metric to ensure you can deliver on your commitments for customers in 2020. This is especially important for organizations shipping perishable and other time sensitive commodities.
Spot Quote Cost Savings & Bid Savings
Tighter control over spot market utilization can translate into tens, even hundreds of thousands of dollars saved on expedited freight on an annual basis. So look back through the data in your TMS to determine how competitive your spot bidding activity actually is. Find out if you’re saving or losing money when spotting out loads. Look for patterns in the data that reveal inefficient use of the spot market.
Costing & Cost Allocation
Viewing this data at the order level, line item level or even at the stop level can deliver critical intelligence relevant to decisions regarding multi-stop truckload and consolidator freight moves. Answer important questions like “How much cost does each product on the truck bear and how much are you charging for it?” These metrics help zero in on the actual cost to deliver product at the stop level. It also provides visibility into detention and other cost line items and enables shippers to arrive at a replicable method for arriving at the actual final cost of their products.
Customer Pickup vs. Cost to Deliver
Clarity into this metric allows a shipper to optimize freight in lanes so as to ensure profitability (or lack thereof) attached to delivering into certain areas of the transportation network.
If your TMS does not make it easy for you to harness, interpret and act on critical metrics like these five detailed above, you should ask your provider why. Or better yet, you should think about engaging a solution like UltraShipTMS which does all this and more.