The Importance of Measuring Delivery Efficiency in International Air Delivery
It is very important to know how to measure delivery efficiency in international air delivery. Without this, it would be hard for airfreight companies to be productive.
International air delivery is quite the essential nowadays, especially since eCommerce has been very productive all over the world. But since you are dealing with a global market through eCommerce already, then there would come a need to engage in international air delivery when it comes to the products that you sell to your customers overseas. Because of this, it becomes important to measure delivery efficiency in international air delivery. Here lies the importance of international air delivery KPI or key performance indicators.
The great thing about international air delivery is that you can now send as much cargo as you need to or want with just 24 hours for your turnaround time. This would not be possible without airplanes and cargo planes, of course. If these planes are not used in the industry, then this would mean that delivery time could take days, even weeks at the most. Thus, airplanes and cargo planes have certainly made things easier when it comes to international delivery. However, this does not mean that the industry is not free from problems for they do have their fair share of such. This is true in spite of the technology that abounds the industry today.
Key performance indicators are measurable factors incorporated in what are known as balanced scorecards. They act as quantifiable figures that are used in measuring the overall performance of the company itself. In this case, the KPIs would be used to measure the efficiency of international air delivery, especially in terms of corporate goals and objectives.
For instance, let us presume that a certain airfreight company scores just about 90% in terms if delivery accuracy. This means out of 100 packages, 10 of these are delivered to the wrong recipient. This figure may be meager right now, but if you would take a look at it from the bigger perspective, say a total of 1,000,000 packages, then this means 100,000 of them are delivered to the wrong recipient. Now, this is figure becomes very alarming from this perspective. Your business could very well close down anytime soon.
Thus, it is important to choose the right mix of KPIs to be placed on your scorecard. It is expected for airfreight companies to use different KPIs because they have different goals and objectives that they want to achieve as well. Still, there are general KPIs that these companies use.
One of these metrics is booking, which also includes flight time. Identifying booking should be carried out first so the customers would be informed as to the time their cargos would be sent out. One important thing about booking is the tagging of the packages, especially when you are tagging the packages that belong to this flight or that flight. Tagging should be precise because if you tag a package for the 2nd flight when it is supposed to take the 1st flight out, then this spells serious delay.
Another commonly used metric is RAT or Received as Agreed on Time. If you promise your client to deliver his or her package within a certain period of time, then you should stick to that promise. Make sure your client receives the package within the specified period. This is one metric that you should keep in mind when you want to measure delivery efficiency in international air delivery. There are other metrics that you can use, but these two are commonly used across the industry.
Tags: air delivery, delivery efficiency
