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some degree . But again , years of user turnover , inappropriate influence on routing strategy and execution , and overall loss of both adoption and strategy consistently cause a loss of organizational success .
Alas , there is not a clear path to setting the appropriate stage and structuring the final mile organization to achieve valuable , sustainable savings . Within that structure and journey are multiple stages that each deserve their own discussion . These include consistent employee development and route centralization among many other potential initiatives . But for the sake of editorial space , below are two critical and valuable aspects of the journey .
Setting specific KPIs and goals
Every successful company has its own set of KPIs and metrics , along with annual goals to achieve . But where many struggle is setting the appropriate metrics for the right level of the business . In other words , at the executive leadership level we talk about EBIT , cost of goods sold , payroll , total expense , revenue , and profit . These are obviously critical to the success of any organization , but are not relatable to an entrenched , focused final mile metric . To support those larger metrics , routing operations teams should have clear , actionable , KPIs that support the larger company metrics . Pick three to five , track them daily , and rank / trend them over time , between facilities and regions . Do not drown yourself in data by producing 15-to-20 page reports every morning – that ’ s not focused . These may include :
■ Plan versus actual performance – tracking actual stops , miles , and runtimes versus the plan is a key component of long-term success . The best , most optimized plan is useless if it ’ s ignored in reality . Performance here opens a window to additional opportunities for improvement , including areas of field communication , data integrity , and excessive silos – all challenges that must be addressed to achieve organizational goals .
■ Failed deliveries / reships – Do you know how many orders each day are refused by a customer , or returned to the warehouse due to driver or equipment failure ? Many of these orders are simply sent back out . This results in lower available capacity , increased miles , loss of productivity , and added cost . Controlling delivery failures is key to final mile success .
■ Capacity – While capacity typically means available space on a truck , in reality it must go deeper . All routes should have a physical capacity , in addition to a runtime capacity . Understanding and having visibility of both aspects of capacity allows route planners to make the best possible routing decision . Tracking this definition of capacity allows you to see how the results are affecting overall cost performance , safety , and service .
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