Collaborative Transportation Management
9.1 Logistics Metrics Affected by CTM
Table of Contents
| KPI | Measure | Definition | Example |
|---|---|---|---|
| Days' Supply On-Hand | Inventory days | Value/units of inventory (cost of goods) divided by the value/units of average daily sales (based on past 6 months' history or on forecast for next 6 months) of these products | Avg. value of inventory= $5,000 Avg. Daily Sales = $400 Inventory = 12.5 days |
| On-time Delivery | % Shipments on-time | Number of shipments delivered on-time divided by the total number of shipments | Shipments on-time: 80 Total shipments: 100 On-time % = 80/100 = 80% |
| Fill Rate | % Order in full | Number of order lines/cases/SKUs delivered in full divided by the total number of lines/cases/SKUs ordered | Ordered: Product A = 100 cases Product B = 60 cases Delivered: Product A = 100 cases Product B = 50 cases Line Fill Rate = 50% (1/2) Case Fill Rate = 93.75% (150/160) |
| Out-of-Stock Frequency | % Out of stock | Number of items not available divided by the number of items ordered | Out-of-stock should be measured as frequently as capabilities allow (e.g., daily, weekly, audit). The target is a systematic approach to daily measurement. |
| On-Shelf Availability | % On-shelf availability | Number of days/hours the product is available on the shelf divided by a defined period of time | There is a wide range of measurement methods for on-shelf availability. It is recommended to agree on the measurement among the trading partner's, including the time of measurement. |
| Order Lead Time | Days/Hours | Number of days/hours it takes from order generation to order receipt | Order sent at noon. Picked and shipped at 17:00 the next day + 6 hours of transit time Lead time = 35 hours (1.4 days) |
| Capacity Planning | Days | Number of days for frozen period of capacity plan | A manufacturer plans capacity two months in advance and does not adjust it afterwards (KPI: 60 days) |
| Transportation Planning | Days | Number of days for frozen period of transportation plan | A supplier schedules trucks two weeks in advance and does not change the plans (KPI = 14 days) |
| Full Truck | % Full truck | Number of trucks with over 95% of volume full divided by the total number of trucks shipped | Number of full trucks in May = 20 Trucks with less than 95% fill = 10 % Full Truck = 66.6% (20 out of 30) |
| Vehicle Fill | % Vehicle fill | Average volume of vehicles used divided by the total volume of vehicle | Number of full trucks = 20 Trucks filled at 80% = 10 % Vehicle Fill = 93.3% |
| Empty Running | % Empty running | Number of miles driven empty divided by total miles driven | Miles driven empty = 300 Total miles driven = 6,000 % Empty Running = 5% (30/6,000) |
| Distribution Costs | % of Sales | Total distribution costs (e.g., transportation, warehousing, inventory) divided by sales dollars | Total distribution cost = $750 Total sales = $2,000 KPI: % Sales = 37.5% (750/2,000) |
| Invoice Accuracy | % Invoice accuracy | Number of lines with matching data (specification and price) divided by total number of lines | 16 lines ordered 10 lines match 100% % Accuracy = 62.5% (10/16) |
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