Transport KPIs List

Transport KPIs are metrics that track and measure the transport manager, driver, and team’s ability to ensure that the transport company (or division) is professionally, efficiently, and effectively run, and objectives are continually met over time.

Transport KPIs Reporting Dashboard

Transport Manager Objectives

The transport manager’s objectives or KPIs are designed to track and measure the transport manager’s operational efficiencies, including metrics like increasing labor productivity, improving the annualized inventory turn, reducing maintenance costs, and increasing the production value. The higher these metrics, the greater the transport manager’s operational efficiencies.

  • Improve labor productivity – Labor productivity is a critical transport metric that must be tracked and measured over time. This KPI tracks and measures the transport manager’s ability to improve the team’s labor productivity metrics over time. The higher this KPI, the greater the transport manager’s operational efficiencies.
  • Improve (reduce) maintenance costs – Maintenance costs often comprise a significant part of the transport company’s budget. This KPI tracks and measures the extent to which the transport manager can improve or reduce maintenance costs over time. The higher this metric, the greater the transport manager’s ability to reduce the organization’s overall maintenance costs.

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  • Improve the annualized inventory turn – The annualized inventory turn measures the number of times the business cycles through its annual inventory. This objective measures the transport manager’s ability to improve the annualized inventory turn metrics. The higher this KPI, the greater the extent to which the transport manager can improve the annualized inventory turn.
  • Improve the planned cost of goods sold/planned inventory value – This KPI tracks and measures the extent to which the transport manager is able to improve on the planned cost of goods sold/planned inventory value. The higher this metric, the greater the transport manager’s operational efficiencies.

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Transport Driver Objectives

The transport driver’s KPIs or objectives are designed to track and measure the driver’s operational efficiencies, including metrics like improving on-time pick-up and delivery, improving fuel efficiency metrics, reducing the transit time, reducing the mileage driven outside of the predefined route, and reducing border delays.

  • Improve on-time pick-up and delivery – This KPI tracks and measures the transport driver’s ability to improve or increase the on-time pick-up and delivery metrics. The higher this objective value, the greater the extent to which the driver is able to the number of times the on-time pick-up and delivery goal is achieved.
  • Improve fuel efficiency – It is imperative to track the drivers’ fuel efficiency over time as it is a cost-saving and expense-reducing mechanism. This KPI measures the transport driver’s ability to improve the fuel efficiency numbers over time. The higher this metric, the greater the driver’s ability to improve the fuel efficiency numbers.

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  • Improve (reduce) mileage that is driven outside of a predetermined route – This KPI tracks and measures the transport driver’s ability to improve (reduce) mileage that is driven outside of a predetermined route. The higher this metric, the greater the extent to which the transport driver can lower the mileage driven outside of a predetermined route.
  • Improve (reduce) border delays – Border delays add up and can cost the transport organization a substantial amount of time when converted into USD. This KPI tracks and measures the transport driver’s ability to improve or reduce border delays. The higher this metric, the greater the driver’s ability to optimize time spent at a border.
  • Improve (reduce) the transit time – The transit time is the time the goods shipped sit in the truck after the truck has left the depot until the time the goods are delivered. This KPI tracks and measures the extent to which the transport driver is able to reduce the transit time for each shipment.

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Transport Team Objectives

Transport team objectives or KPIs are designed to track and measure the transport team’s ability to meet their job role requirements, including improving revenue yield, reducing damages, improving the book to fulfill ratio, and reducing the book to ship days. The higher these metrics, the greater the transport team’s operational efficiencies.

  • Improve the revenue yield – The revenue yield is an inventory-focused aspect of revenue management. This KPI tracks and measures the transport manager’s ability to increase the revenue yield over time. The higher this metric, the greater the extent to which the transport manager can increase this yield metric.
  • Improve (reduce) loading or unloading time – The time taken to load or unload goods of a truck can reduce or increase the number of trips completed in the transport team’s shift. This KPI tracks and measures the transport team’s ability to improve or reduce their loading or unloading times during their shift.

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  • Improve (reduce) damages – The value of any damages incurred while goods loaded on a truck are in transit increases the cost to company numbers. This KPI tracks and measures the extent to which the transport team can reduce the number of damages that occur while goods are being transported to their destination.
  • Improve (reduce) the book to fulfill ratio – The book to fulfill ratio is used to measure the supply and demand of goods in volatile industries such as the technology sector. The KPI is designed to track and measure the transport team’s ability to improve the book to fulfill ratio over time.
  • Improve (reduce) the book to ship days – This objective tracks and measures the transport team’s ability to improve or reduce the book to ship days metric. The higher this KPI value, the greater the extent to which the transport team is able to improve the book to ship days metric over time.
  • Improve the pick exception rate – The pick exception rate is a warehouse picking error rate. This KPI tracks and measures the number of errors that the transport team makes in relation to the total number of items picked over time. The higher this metric, the lower the team’s pick exception rate over time.
  • Improve the production value – The production value is the organization’s turnover, minus the operating income. This KPI tracks and measures the extent to which the transport team is able to increase the production value over time. The higher this metric, the greater the transport team’s ability to increase the production value.
  • Improve the time elapsed from pick release to shipping confirmation – The time elapsed from pick release to shipping confirmation KPI tracks and measures the extent to which the transport team is able to reduce the time between the pick release to the shipping confirmation. The higher this metric, the greater the transport team’s operational efficiencies.
  • Improve (reduce) the time elapsed from receipt – This KPI tracks and measures the transport team’s ability to reduce or improve the time elapsed from the receipt of the shipping manifest to the time that the delivery has been completed. The higher this metric, the greater the transport team’s operational efficiencies.

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These transport KPIs are an integral part of ensuring that the transport driver, team, and manager meet their critical organizational goals. The successful implementation of an effective transport strategy plays an indispensable role in ensuring that the transport company or department meets its operational and organizational goals. As a result, measuring these objectives is key to operational success. These KPIs focus on tracking metrics grouped in three result areas: driver, team, and manager.

It is essential to track and measure these KPIs over time because they offer insight into the transport company or division’s successes and where improvements are needed. Metrics like improving the revenue yield, on-time pick-up, and delivery metrics, reducing maintenance costs, and fuel efficiency are fundamental to ensuring the company’s operational success.

Implementing transport KPIs or objectives for the transport team, driver, and manager drives the requirement to guarantee consistency over time. High-performing metrics are valued, translating into an effective transport division (or company) management strategy and application thereof by the transport team, manager, and driver. Juxtapositionally, low-performing metrics must be revisited as they indicate poor performance and detract from operational and organizational success.

Benefits of AssessTEAM cloud-based employee evaluation form for your transport team.

  • Use on all smart devices
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