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Blog > Last mile delivery
29 September 2023 | 7 min read
Les indicateurs clés de performance – en anglais key performance indicators – désignent un ensemble de chiffres et de statistiques à suivre pour prendre les meilleures décisions.
Dans une activité comme le transport routier où la rentabilité est faible, ces chiffres sont donc essentiels pour piloter efficacement son entreprise et préserver ses marges d’exploitation !
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According to the results of a study carried out by Banque de France and FNTR (National Federation of Road Transport) in 2022, more than half of road haulage companies are less than 8 years old, and their current pre-tax profit is just 2%.
In other words, companies in this sector are both younger and more insecure than those in the rest of the economy.
To maintain and improve their operating results year after year, transport company CEOs and managers have no choice. They have to check their key indicators very regularly, and do what’s necessary to improve or optimise them!
The key figures are provided by your transport software (TMS), or more generally by supply chain management software.
You can also use certain statistics provided by your CRM, accounting and human resources tools.
Although all these software packages are now able to provide very comprehensive KPIs and dashboards… they’re not inventing anything! To get reliable results, you need to take the time to fill in all the relevant data for your business accurately, and don’t settle for approximations.
The essential data processed by all transport software includes:
However, there’s no point in accumulating figures and multiplying tables, as this can waste a lot of time. To monitor and improve your company’s productivity, it’s best to select a few priority indicators for your business, and track them very closely!
These key performance indicators are essential for monitoring and improving the efficiency of logistics processes, and therefore the company’s profitability.
Most software packages provide analysis by day, week or month. It’s up to you to decide which period is most relevant to your business.
In this case, it is above all the difference between planned distances and actual distances that will enable you to detect any problems in the logistics organisation, either within your company or at the end customer’s premises.
By monitoring these indicators, you can quickly identify any abnormal variations in activity, and reorganise your teams to restore optimum productivity.
In an inflationary environment, hauliers are looking for the slightest unnecessary expense to maintain and improve their margins. Fortunately, transport software, and delivery management software in particular, provide you with invaluable indicators for smartly optimising the vehicles available.
💡 In addition to these indicators, some software packages such as AntsRoute also provide a heat map of delivery, which is very useful for boosting your sales efforts in certain areas, or conversely, outsourcing journeys in others.
For hauliers, margins are the sinews of war, as the representative of the Banque de France reminded us at the last congress of the Fédération nationale des transports routiers (FNTR: National Federation of Road Transport).
Yet the gross operating margin (EBITDA) is only 6.4% on average, even though fuel alone accounts for 10% of sales!
If they want to remain both profitable and competitive, managers need to keep a close eye on the various cost items, and pass on any increases in transport prices as soon as possible.
Staff costs (wages + charges) account for about three quarters of added value, i.e. the cash flow generated by the company’s operations. It is difficult to reduce these costs at a time when most hauliers are struggling to attract new drivers and retain existing ones.
In this context of shortage, the most realistic solution is once again to optimise driver activity using your transport software.
In addition, most transport software now offers real-time driver tracking. This feature may not be a performance indicator in the strict sense of the term, but it is nonetheless essential for optimising the efficiency of teams in the field and detecting any inappropriate behaviour at an early stage.
The quality of service has a considerable impact on customer loyalty, but also on the corporate image. However, many transport companies see their online reputation impacted by a large number of negative reviews…
Rigorous monitoring of customer satisfaction indicators is essential for analysing the causes of problems and implementing corrective action.
Are these difficulties due to insufficient communication? Is the planning too ambitious? Are customer complaints correctly assigned or concerned only a few drivers? These are just some of the questions to ask in the light of these indicators.
Faced with pressure from consumers who are asking them to save the planet while delivering their orders as quickly as possible, more and more companies are thinking about more sustainable logistics solutions.
🍃 These indicators will therefore be useful for measuring the improvements you have made, as well as for drawing up your carbon footprint if your company is concerned:
Depending on your activity and your position in the supply chain, you may need to monitor other key indicators to improve your own performance, or that of your partners and subcontractors.
Here are the main KPIs that can be used to identify shortcomings in supply chain and warehouse management:
With over 20 KPIs processed, our delivery software offers you clear and comprehensive dashboards to manage all your transport operations efficiently.
Do you also run an e-shop or warehouse? Easily connect AntsRoute to your favourite tools such as WooCommerce, PrestaShop, Odoo and many others, to monitor your supply chain in real time!
To try AntsRoute for free and with no obligation for 7 days, sign up here.