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Is Your Haulage Business Doing Well? Find Out With These Metrics by Laura Jeeves





Is Your Haulage Business Doing Well? Find Out With These Metrics by
Article Posted: 05/19/2017
Article Views: 422
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Is Your Haulage Business Doing Well? Find Out With These Metrics


 
Automotive
When you look around you at work you can see that everyone from drivers to managers are working hard, but the question for on-going success is… are they working efficiently?

Most haulage companies will have already made efficiency changes around fuel saving, the age of their fleet and route management. Some will have even gone a step further by joining a haulage exchange scheme to reduce unprofitable journeys and thereby increasing their efficiency. But how do you find out what effects these changes are having on your business, and could you do more?

To answer that question you are going to need to select which Key Performance Indicators (KPIs) you are going to use to monitor just how efficient your business is.

Using the Right Key Performance Indicators for You

All haulage companies are different, so it makes sense to determine exactly which metrics you need to analyse your company’s efficiency accurately.

In analysing the balance between service and cost in your business it’s important not to bombard yourself with too much information. To avoid this you need to work out which metrics will give you the most valuable information and stick to those.

How Many KPIs Should You Choose?

Most haulage companies will need only around four KPIs to give them all the information they need to keep their business running efficiently.

The benefit of limiting the number of KPIs you use is that it will enable you to really understand the data they are giving you and how these relate to the way in which your business is working. You can then use the insight provided by these data to monitor any weak processes and consider how they could be altered to improve performance.

The key here is to keep on top of the analysis, even after changes have been made, so you can determine how effective changes have been and plan a strategy going forward.

Metrics that will Tell You the Most

There are so many metrics that haulage companies can use to monitor their efficiency but the key ones that will tell you the most about your business are:

• The cost of freight relative to each pallet shipped • Freight costs when considered as a percentage of net sales and purchases • Calculating the amount of time each journey takes from pick up to delivery • The number of claims for damages as a percentage of freight cost • Calculating the number of inaccurate bills • Working out the percentage of truckload used on each journey – this is something that signing up to a haulage exchange can dramatically improve • How much time your fleet is not actually in use • Analysis of handling points with a view to streamlining • How punctual your drivers are at pickup and delivery

These core metrics will ensure that your business is running as smoothly and efficiently as it should, and if it isn’t, they will help you understand where changes need to be made and what they could be. Never be afraid to analyse the information contained in your company’s records – they could be the solution to a brighter, more efficient future.

Norman Dulwich is a Correspondent for Haulage Exchange, the leading online trade network for the road transport industry. Connecting professionals across the UK and Europe through their website, Haulage Exchange provides services for matching haulage companies with jobs in road transport and haulage work. Over 4,000 transport exchange businesses are networked together through their website, trading jobs and capacity in a safe 'wholesale' environment.

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