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Gauge and Improve Your Freight Management Performance: Six Critical Key Performance Indicators

By Contributing Author | 03/03/2017 | 11:39 AM

By Mike Challman, VP, North American Operations for CLX Logistics

The 5 W’s: Who, What, When, Where, Why (and How) – is a guide for young journalists in writing leads and actually serves as a good rule-of-thumb for efficient supply chain management. Specifically the 5 W’s can be applied to freight management:

  1. Who is the recipient?
  2. What are you transporting?
  3. When do they need it?
  4. Where do they need it?
  5. Why are we utilizing this mode?
  6. How can we optimize the process?

With the supply chain management competitive landscape growing at a steady rate, assessing freight management performance is increasingly important. Smart companies constantly look for better and more efficient ways to manage their supply chain – the question is, where to start?

Although the entire freight management process is crucial, there are some elements you should prioritize over others. Consider the following key performance indicators when beginning your freight management assessment:

  • Timing is everything. Analyze any consistent delays or last-minute order changes that may be negatively affecting your efficiency and productivity. Add order planning lead times and shipment transit times to your monthly reports to help diagnose lags and streamline operations.
  • Freight costs may seem like an obvious KPI, but the true innovation is in the solution. If your freight costs have increased faster than average inflation, incorporate an extended rate database and a Request-for-Quotation (RFQ) tool to help drive the lowest price for your business.
  • Another aspect to consider is sustainability. The Pew Research Center recently found that 65% of Americans would like to make alternative energy source production a priority. Therefore, environmentally-conscious efforts will earn bonus points amongst the majority of U.S. customers.

Review the remaining KPIs and begin optimizing your freight management process and reporting today.



Mr. Challman leads all of ChemLogix Managed Services in North America, including freight management operations; benchmarks, bids & carrier procurement; dedicated and rail fleet operations; and brokerage services. CLX Logistics is a global provider of transportation management, technology, and supply chain consulting services, that offers a superior combination of technologies, flexible solutions and a high-touch approach to solving logistics challenges.



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Welcome to "One-Off Sound-Off," a blog page devoted to guest commentary on all things supply chain. This is a space where industry leaders can share their opinions and expertise with the logistics and supply chain community. If you have an article or commentary you'd like to share, please consider sending a guest blog proposal to feedback@dcvelocity.com.


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