The Compass of Success: Leveraging Shipping KPIs for Growth

Posted on Jul 26, 2023 at 10:07 PM

Due to the oversized freight and logistics, the shipping industry has many included details. Following shipping KPIs is highly important to guarantee the best performance in maritime shipping.

Taking care of your business's key performance indicators and metrics will help you find and solve problems before they become disasters.

In this article, we will introduce you to the maritime shipping KPIs concept and the importance of shipping KPIs. Furthermore, share the critical shipping key performance indicators you must follow.

Definition of Maritime Shipping KPIs:

Shipping key performance indicators, or shipping KPIs, are the global measurable values and metrics to evaluate a company's performance and effectiveness in delivery, time management, picking, general, or a specific shipment, process, or system.

These indicators and metrics are used in the maritime shipping industry as a professional way to identify the efficiency, productivity, success, and error rates of all the working units.

Moreover, the digital revolution in delivery and shipping management provided accurate and advanced shipping key performance indicators to measure performance at any time.

The Importance of Maritime Shipping KPIs:

There are so many benefits of marine shipping key performance indicators, and now we are going to share with you the greatest of them all:

Shipping KPIs

Performance evaluation based on clear metrics, hands and numbers.
A better decision-making process on all levels, as a decision built on real-time data, will be more efficient and effective and help you avoid errors or surcharges in transportation.
Boost operation supply chain efficiency and handling simply because you will have all the required details to improve loading/unloading, delivery time, transit, freight quality, supply chain, and final packing.
Shipping KPIs will help guarantee customer satisfaction and better service measurement quality.

8 Essential Maritime Shipping KPIs to Follow:

Although there are too many shipping KPIs to track, however, now we are going to share with you the most critical KPIs regarding maritime shipping KPIs tracking and measuring:

Vessel Turnaround KPI:

A key performance indicator measures a ship's total required time to fulfil a freight cycle, including arrival to port, loading/unloading, and departure.

This metric helps measure businesses' ability to achieve top-quality port and vessel operations.

Partner Performance KPI:

This is considered a newly used KPI, which is highly important, especially for B2B business types.

This shipping performance KPI evaluates your partner's average performance and the ROI of this partnership investment on your corporate.

On-Time Delivery (OTD) KPI:

On-time freight delivery measures the estimated departure date (EDT) and compares it with the actual departure date (ATD) for each shipment process. Then provide an analytics percentage of shipments that are delivered on scheduled time.

E-commerce carriers need to share their shipping efficiency with their customers.

Cargo Loss KPI:

An essential shipping KPI that measures the shipped stock loss due to lousy loading/unloading monitoring, shipping, or even stoking in the inventory as a way to learn about different operations and work to improve them effectively.

Shipping Cost KPI:

Maritime shipping cost KPI guide you to know all the included costs. Moreover, it gives you clear insights about logistics, metrics, and calculated invoices to help you reduce operational costs and increase profitability without impacting performance quality.

Safety KPI:

Safety is an essential component of all professional shipping management training courses in London; thus, following this shipping KPI should be a constant process followed by companies and shippers to improve safety measures and protect workers, cargoes, items, vessels, ships, and assets.

Inventory Accuracy KPI:

Whether to measure inventory velocity, turnover, or inventory-to-sale rate. This KPI is essential to the success of your business on the efficiency and cash level.

Vessel Scheduled KPI:

A time-based KPI that measures the shipping date, distance, cargo safety, material capacity, and overall freight statistics to classify the complete quality of ongoing operations offshore and onshore.