Data is the key to success. It is an invaluable tool for any business. Proper reports, analysis and use of data can make the difference between stagnation and growth. In logistics, where efficiency and costs are crucial, collecting, understanding and using data to your advantage is essential.
Why is data important in logistics?
Every decision a company makes should be based on information. Data, statistics, analyses, reports, and their proper interpretation help make smart and strategic decisions. In an ideal situation, you can get numbers with just a few clicks in an app that identifies opportunities or warns you of potential issues.
You need to know who is the most efficient carrier. Do you know your most common routes or what your average shipping cost is? All this data helps optimize transportation.
4Shipper provides effortless access to key data. Our reports clearly display your savings and highlight areas for transportation optimization. Leveraging 4Shipper’s data empowers you to drive growth. With our free platform and detailed reports, clients achieve up to 16.43% reductions in shipping costs. Beyond reports, we also emphasize the crucial role of KPIs in informed decision-making.
KPI: The Key to Effective Decision-Making
Key Performance Indicators (KPIs) are measurable values that show how well goals are being met. In logistics, KPIs help us identify areas for improvement, reduce unnecessary costs, and streamline processes.
So, which KPIs should you keep in mind? At 4Shipper, we recommend focusing on the following:
- Average Shipping Cost: Tracking this metric allows you to easily compare and ensure you’re paying competitive prices. This is especially important for stable routes. If routes vary and you want to check if the prices are fair, it’s helpful to monitor another indicator – the average cost per kilometer.
- Average Cost Per Kilometer: Cost efficiency is key. This KPI helps assess the pricing strategy of carriers and identify the best solutions for your shipments. By monitoring the average cost per kilometre, you gain a deeper understanding of how efficiently your shipping budget is being utilized, regardless of route variations.
- Carrier Reports: Detailed carrier reports give you an overview of their reliability, delivery times, and cost efficiency, making it easier to select the best partners. Metrics such as rejection rate, price differences, win rate, and total number of offers provide valuable insights into carrier availability and, most importantly, their performance. These indicators allow you to make informed decisions when selecting carriers, ending collaborations, or seeking better alternatives. 4Shipper offers all of this.
Savings Under Control: Track Your Most Important KPI
The most important KPI to track in logistics is savings. Do you know how your company is performing? This key indicator shows how much you’ve saved through strategic decisions and optimizations.
On average, our clients save more than 16% by using 4Shipper. This metric helps monitor operational efficiency. If costs are not optimized, it’s important to find out why. It could be a specific carrier affecting your profits or a route that is not financially beneficial.
Reporting: Not Just Checking, But Understanding
Collecting data and tracking KPIs is just the first step. It’s equally important to interpret this information correctly and use it for strategic decisions. 4Shipper’s reporting offers clear and easy-to-understand overviews that help identify strengths and weaknesses.
Our easy-to-read reports answer questions such as:
- Which routes and carriers are the most efficient?
- Where are the highest costs coming from, and how can they be reduced?
- What are the main factors affecting delays and claims?
Without reports and proper analysis, a company may rely only on intuition and inaccurate estimates, leading to inefficiency and unnecessary losses. Data is the key to success in every business, especially in logistics. Well-set KPIs and their thorough analysis help companies grow, save costs, and improve efficiency. It’s not enough just to collect data – it’s important to know how to interpret it and use it to make better decisions. By using 4Shipper, you ensure quality data and reports. Use them to gain a competitive edge.
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