Calculation of kpi for the department of transport logistics. The structure of key performance indicators (KPI) for the logistics of the company. Formation of KPI warehouse system

10.11.2020

In the ELA terminological dictionary there is a concept "Logistics key performance indicators" (KPI) - key performance indicators logistics activities, which are understood as the necessary and sufficient range of relatively easily applicable performance indicators (performance) that allow linking the implementation of the logistics plan with the main functions and results of managing the commodity flow (marketing / sales, production and logistics) and thus determine the need for corrective actions.

During the development of logistics in industrialized countries, a system of indicators has been formed, in general plan evaluating its effectiveness and efficiency, which usually include:

1.- general logistics costs;

2.- quality of logistics service;

3.- duration of logistics cycles;

4.- performance;

5.- return on investment in logistics infrastructure.

In what follows, we will call these indicators key or complex indicators of the effectiveness of drugs. They underlie the reporting forms of companies and systems of indicators of logistics plans. different levels. There are generally accepted procedures for comparative evaluation of firms (bench-marking) in the field of logistics based on analytical and expert methods using the specified complex indicators.

Thus, the key/complex performance indicators of drugs are the main indicators of the efficiency of the use of resources in the company for the formed drugs, which in a complex evaluate the effectiveness of logistics management and are the basis of logistics planning, accounting and control.

Consider brief description complex indicators, given that their content and features of use are disclosed in more detail in the relevant sections of the book.

1.General logistics costs are called the total costs associated with the complex of functional logistics management and logistics administration in drugs.

As part of the total logistics costs, the following main groups of costs can be distinguished:

Costs for the implementation of logistics operations / functions (operational, operational logistics costs);

Damage from logistical risks;

Logistics administration costs.

Most reporting forms on the implementation of the logistics plan contain indicators of logistics costs, grouped by functional areas logistics, such as costs in material management, costs of physical distribution operations, etc., and within these areas by logistics functions.

Generally accepted in Western business are the allocation and accounting of costs for:

transportation,

Warehousing,

cargo handling,

Inventory Management,

order management,

Information and computer support, etc.

Often, in order to solve the problems of optimizing the structure or management in a LAN, as part of the total logistics costs, loss of profit from freezing (immobilization) of products in stocks, as well as damage from logistical risks or poor quality of logistical service. This damage is usually assessed as possible decrease in sales, reduction in market share, loss of profit and so on.

An analysis of the structure of logistics costs in various industries of economically developed countries shows that the largest share in them is occupied by inventory management costs (20-40%), transportation costs (15-35%), expenses for administrative and management functions (9-14% )31.

Over the past decade, there has been a noticeable increase in the logistics costs of many Western companies for such logistics functions as transportation, order processing, information and computer support, as well as for logistics administration.

Renowned American logistics consultant Herbert Davis has for several years tracked logistics costs in the US industry for warehousing, shipping, order management/customer service, distribution management, and inventory management as an integral part of the final price of products and customer service.

In 1997, for example, the structure of logistics costs, expressed in shares (%) of sales, looked like in the following way:

Shipping finished products - 4,08 %;

Warehousing - 2.40;

Customer service / order management - 0.55;

Distribution management - 0.36;

Inventory holding cost (at 18% discount rate) - 1.81% -

The total amount is 9.02%.

Cost structure (in dollars per hundred pounds of product weight);

Transportation of finished products - 13.24; 0.29 $/kg

Warehousing - 10.79; 0.24 $/kg

Customer service / order management - 4.07; 0.09 $/kg

Distribution management - 1.53 0.034 $/kg;

The cost of holding inventories at an 18% discount rate is 18.13. 0.4 $/kg

The total amount was 47.4832. 1.055 $/kg

Analysis of logistics costs by Western companies is usually carried out as a percentage of standard, volume or resource indicators, for example:

1. logistics costs in relation to sales volume;

2. individual components of logistics costs in relation to total costs;

3. the logistical costs of the firm in relation to the standards or average level in the industry;

4. logistical costs in relation to the relevant items in the firm's budget;

5. logistical budget resources at the current moment in relation to projected costs.

The listed indicators are often included in the reporting forms on logistics performance (productivity), focusing on the efficiency of use financial resources companies ( logistic analysis and audit).

The use of total logistics costs as a key indicator in the formation of a logistics strategy in domestic business encounters a number of difficulties caused by the following main reasons:

1. the inability of the current system of accounting and statistical reporting of enterprises to single out many components of logistics costs;

2. the presence in the domestic business of "double" bookkeeping, "black cash", the secrecy of financial information for partners in drugs and even between structural divisions within the company, etc.;

3. lack of methods for calculating damages from logistical risks, etc.

2. The concept of quality logistics service is based on the standardized terms "service" and "service" (see also clause 8).

In essence, the vast majority of logistics operations/functions are services, so a logistics service can be defined as the process of providing logistics services (as a result of the performance of the corresponding operations or functions) to internal or external consumers.

Intermediaries operating in LANs are mainly service enterprises in which services are inextricably linked with a product that is distributed, promoted and sold at various parts of the logistics network. Such links include various transport companies, forwarders, wholesalers and retailers, warehouses, terminals, customs brokers, Insurance companies and so on. At the same time, the cost of logistics services can significantly exceed the costs directly for the production of products.

Logistics services are as diverse as logistics operations. For example, in Table. 2.3 shows the range of logistics services provided by US public warehouses.

Table 2.3. Types of services provided by public warehouses

1. Cargo handling, storage and distribution, taking a package or a loading unit as a unit

2. Storage of goods in transit

3. Control and regulation of temperature and humidity in the warehouse

4. Provision of warehouse space on a lease basis

5. Provision office space, video terminal services, telephone and computer services

6. Provision of information related to the transportation of goods, forwarding, traffic

7. Physical distribution of products within the warehouse

8. Providing modern devices for preparing and reading information, scanners, etc.

9. Development of a plan for the consolidation of freight shipments

10. Packing and sorting goods

11. Disinfection

12. Marking, attaching labels, writing stencils, packaging with a protective film

13. Postal services and express delivery

14. Packing, palletizing and strapping of goods

15. Loading (unloading) on cars. trailers and semi-trailers

16. Preparation, testing, testing, weighing and control

17. Consolidation and downsizing of consignments

18. Preparation special places storage

19. Preparation and delivery of shipping documents

20. Provision of vehicles for local and long-distance transportation

21. Installation of special devices on vehicles for the delivery of oversized cargo

22. Registration of warehouse documents for the acceptance of cargo, forwarding, transit, etc.

23. Distribution of freight shipments

24. Preparation of shipping documents

25. Informing about lending

26. Lending of stored goods

27. Territorial warehouse service

28. Terminal service for cargo water, rail and intermodal transport

29. Storage of oversized cargo, metal and other products requiring non-standard storage equipment

30. Open storage of goods

31. Cargo handling, storage and packing of small batch shipments of goods

32. Bottling, cargo handling. storage, bottling of liquid cargo

33. Cargo handling and storage of containers

Despite the importance logistics service for the implementation of corporate strategies, there are still no effective ways evaluation of its quality, which is explained by a number of features of the characteristics of the service in comparison with the characteristics of the products.

These features are:

1. Intangibility of the service. It is difficult for service providers to explain and specify types of service, and it is also difficult for buyers to evaluate them.

2. The buyer is often directly involved in the production of services.

3. Services are consumed at the moment they are produced, i.e. services are not stored or transported.

4. The buyer never becomes the owner by purchasing services.

5. Service is an activity and therefore cannot be tested before the customer buys it.

These characteristics and features of services play an important role in the logistics process. It is very important to take into account the fact that the quality of service in logistics is manifested at the moment when the service provider and the buyer meet. The measurement of the quality of service in the analysis and design of drugs should be based on the criteria used by the buyers of logistics services for these purposes. When the buyer evaluates the quality of a logistics service, he compares some actual values of the "measurement parameters" of quality with the expected values of these parameters, and if these expectations match, then the quality is considered satisfactory.

IN international standard ISO 8402:1994 quality defined as "the set of characteristics of an entity relating to its ability to satisfy stated and implied needs".

In relation to the logistics service, in our opinion, the definition is more appropriate. quality as "the degree of discrepancy between the expectations of customers and their perception of criteria such as reality, reliability, responsiveness, competence, courtesy, trust, safety, sociability, customer understanding.

Accordingly, those companies in which the client feels the fullest presence of these characteristics, he perceives as companies with the highest quality.

The most important components (parameters) of measuring the quality of service:

1. tangibility - the physical environment in which the service, amenities, office equipment, equipment, type of personnel, etc. are presented;

2. reliability - "just in time" execution, ie, in physical distribution, delivery of the right product at the right time to the right place. Reliability of information and financial procedures accompanying physical distribution;

3. responsibility - the desire to help the buyer, guarantees for the performance of the service;

4. completeness - the presence of the required skills, competence, knowledge;

5. availability - ease of establishing contacts with service providers, convenient time for the buyer to provide logistics services;

6. security - the absence of danger, risk, distrust (for example, the safety of cargo during transportation);

7. courtesy - the behavior of the service provider, the correctness of the staff;

8. sociability - the ability to speak a language understandable to the buyer;

9. mutual understanding with the buyer - a sincere interest in the buyer, the ability to enter into the role of the buyer and understand his needs (requirements).

The specification of the quality parameters of a logistics service and the choice of methods (methods) for their assessment and control are perhaps the most difficult issues in logistics administration.

The most important comprehensive indicator of the effectiveness of drugs is the duration of the full logistics cycle- time of execution of the order of the consumer (buyer). The use of this indicator (or its individual components) is due to the requirements of the corporate strategy, if time is chosen as the main factor in increasing the competitiveness of the company.

KPI is an abbreviation for the English Key Performance Indicator. Translated as "Key Performance Indicator", in practice Russian companies the combination "key performance indicator" is often used. BSC is an abbreviation of the English Balanced Scorecard, translated as "balanced score".

Management by goals (or management by deviations from goals) in the practice of Russian companies is becoming standard tool implementation of strategic plans through the organization of effective operational work, which is guaranteed to lead to the achievement of planned indicators. In other words, each business system, business process, business function is set target benchmarks - standards, the deviation from which is unacceptable. If such a deviation occurs, then a control action should be generated in the system that brings business processes to the established standards of functioning.

Standards or management goals in modern business conditions are set using the methodology of forming a balanced scorecard (BSC), and the values of actual deviations from balanced scorecards are objective indicators of the state of the system (KPI).

Strategic and regulatory KPIs

KPIs can be strategic or regulatory in nature. Strategic KPIs should include such indicators, the achievement of which allows the company to gain important strategic advantages. At the warehouse system level, the strategic KPIs include the following:

the number of warehouses in the system (under the conditions of development of the warehouse network);
storage capacity (in commodity and/or monetary units);
throughput capacity of the warehouse (in commodity and/or monetary units);
cost of storage and warehouse handling;
operational reliability.

In practice, strategic KPIs are most often of a boundary nature, that is, they are limiting, target indicators that the warehouse system must steadily strive for in order to provide strategic advantages that are significant for the company.

Normative KPIs are key performance indicators that must be maintained in a constant state in the system, playing the role of a control standard. In the context of the warehouse activity, the normative KPIs will be such indicators as:

norms for the performance of technological operations (for example, the temporary standard for loading / unloading vehicle);
indicators of the quality of operations performed (for example, commissioning);
the standard for the loss of goods/cargo due to the fault of the warehouse (theft, careless handling, personnel errors that caused material damage, etc.)

The strategic KPI, upon its achievement, can be transferred to the category of static, normative, and the normative KPI can become strategic, for example, if it is necessary to increase the throughput of the warehouse complex (operational standards may be tightened in terms of time intervals for execution or involved personnel).

A system map reflecting approaches to the formation of KPI for a warehouse system is shown below.

Formation of KPI warehouse system:

KPI by warehouse type

a) for own needs

1. production warehouse

2. distribution center

b) provision of services

1. plan for net profit

2. plan for operating profit (EBIT)

3. net CF plan

Significance of KPIs

a) strategic KPI

b) normative KPI

KPI calculation method

a) statistical on data generation

b) over the entire dataset

KPI according to the method of technological processing of flows

1. using a barcode

2. without using a barcode

b) mechanized

c) automated

Comprehensive KPI

a) operational

b) resource intensity

1. shipment

2. acceptance

3. storage

4. performance control

Simple KPI

a) effectiveness

1. shipment plan

2. acceptance plan

3. storage plan

4. quality standard (% of deviations reaching the consumer)

b) efficiency

1. processing cycle time

2. unit processing cost

3. cost of achieving development goals

4. resource-to-weight ratio

c) economy

1. cost plan

2. investment plan

The choice of the KPI system should correspond to the actual state of the technological architecture of the warehouse complex and at the same time set the vector of its development or qualitative change. Table 1 summarizes the main KPIs recommended in the practice of our company for use in mechanized and automated warehouses.

Table 1

Key performance indicators of the warehouse system

№	Index
№	Index	Mechanized	automated
1	CAPACITY
1.1	Throughput for the period (the maximum value of the goods flow that enters the system input and is issued in accordance with the shipping standard at the output of the warehouse)	+	+
1.2	Acceptance throughput for the period (the maximum value of the goods flow that the warehouse can accept for the period)	+	+
1.3	Shipment throughput for the period (the maximum value of the goods flow that the warehouse can ship if there are goods for the period)	+	+
1.4	Composite throughput per period (sum of incoming and outgoing throughput per period)	+	+
1.5	Throughput by type of goods and method of acceptance / shipment for the period	+	+
1.6	Throughput ratio for the period (the ratio of the maximum goods flow at the exit to the maximum goods flow at the entrance of the warehouse system for the period)	+	+
1.7	Turnover period (the time period required to ship goods from a fully stocked warehouse in the absence of a flow of goods at the system input)	+	+
1.8	Filling period (the time period that is required to completely fill the warehouse in the absence of shipment)	+
2	STORAGE
2.1	Storage capacity by commodity/technological groups	+	+
2.2	Storage capacity by technological zones of the warehouse	+	+
3	USE OF LOGISTICS CAPACITIES
3.1	Space utilization ratio (the ratio of the area of the warehouse occupied by technological equipment and / or allocated for the storage of goods / commodity operations to the total area of the warehouse)	+	+
3.2	Volume utilization ratio (the ratio of the volume of the warehouse occupied by technological equipment and / or allocated for the storage of goods / commodity operation to the total volume of the warehouse)	+	+
3.3	Specific throughput of the warehouse for the period per employee (complex labor productivity) (can be calculated in terms of goods or in monetary terms)		+
3.4	Specific throughput of the warehouse for the period per unit area or volume of the warehouse (can be calculated in terms of goods or in monetary terms)	+	+
3.5	Technology/mechanization/automation utilization ratio (the ratio of the flow of goods processed mechanized/automated to the total flow of goods)	+	+
4	OPERATING INDICATORS
4.1	Service speed of the vehicle on the incoming goods flow (by types and types of vehicles, taking into account the type of goods)	+	+
4.2	Service speed of the vehicle on the shipped goods flow (by types and types of vehicles, taking into account the type of goods/order)	+	+
4.3	System throughput in standard/average positions/orders	+	+
4.4	Labor productivity by operational zones of the warehouse	+	+
4.5	Goods acceptance service coefficient for the period (the number of unaccepted/unserved transport/commodity units in relation to the flow of goods scheduled for acceptance)	+	+
4.6	Goods shipment service ratio for the period (the number of unaccepted/unserved transport/commodity units in relation to the flow of goods scheduled for shipment)	+	+
4.7	Customer service ratio for the period (the number of unshipped goods of a particular customer to the goods ordered by the customer) (calculated in monetary, commodity, positional units)	+	+
4.8	The coefficient of complex customer service for the period (the ratio of the quantity of unshipped goods to the ordered goods) (calculated in monetary, commodity, positional units)	+	+
4.9	Shipment quality ratio (Customer quality) (the ratio of incorrectly shipped / underinvested / surplus to the shipped commodity flow) (calculated in monetary, commodity, positional units) Information about errors arises on the basis of satisfied customer claims	+	+
4.10	Set quality factor (Quality of commissioning) (the ratio of incorrectly picked goods to the planned shipped goods flow) (calculated in monetary, commodity, positional units) Information about errors comes from the report of control of set operations	+	+
4.11	Complex coefficient of quality (Logistic quality) (the ratio of the sum of all errors to the total scheduled shipment of goods flow) (calculated in monetary, commodity, positional units)	+	+
4.12	Product loss ratio (ratio of product losses to storage capacity / shipped goods flow / total goods flow) (calculated in monetary or commodity units)	+	+
4.13	Availability coefficient (the ratio of goods temporarily unavailable for picking/shipment, but located in the warehouse, to the total quantity of goods in the warehouse, except for the collected or reserved goods) (calculated in monetary, commodity units)	+	+
4.14	System response time to a standard order (the time it takes for a standard order to pass from the moment it is placed to the moment it is shipped)	+
5	FINANCIAL AND ECONOMIC INDICATORS
5.1	Costs for the implementation of a turnkey warehouse system or its development	+	+
5.2	Costs for process equipment and PTO	+	+
5.3	Specific costs per m 2 /m 3 (the ratio of total costs to the area / volume of the warehouse / unification storage places)		+
5.4	Specific technological costs (the ratio of costs per technological equipment and PTO to the area / volume of the warehouse)		+
5.5	Warehouse operating costs for the period	+	+
5.6	Specific operating costs for the receipt / storage / shipment of a commodity unit (the ratio of operating costs to the flow of goods)		+
5.7	Specific operating costs per m 2 /m 3 for the period		+

A thorough analysis of the problems of managing complex warehouse systems shows the need to introduce complex KPIs into practice to ensure balanced management. Let's look at a simple example that demonstrates the benefits of complex KPIs that allow you to organize "self-tuning" warehouse systems.

Let the warehouse use the standard KPI for the fulfillment of orders for the shipment of goods in the form of the ratio of completed orders to the number of received orders. In our example, 10 requests were received at the warehouse, and 9 requests were actually fulfilled. Then the KPI is 0.90. Perhaps this is a good result from the standpoint of order management, but we need to take into account that the company served by our warehouse makes a profit from the sale of products, and for the management of the company, sales volumes in monetary terms are important. Consider the cost of our orders (table 2).

table 2

Application fee

Application number
1	2	3	4	5	6	7	8	9	10
The cost of the shipped goods by order number
100	1	1	1	1	1	1	1	1	1
The total cost of all received applications is 109 monetary units

If we now enter into the KPI system for shipment in monetary units, then depending on which order was not shipped, we will get the following KPI values for cases:

order No. 1 worth 100 units was not shipped, KPI = 9/109 or KPI = 0.082 (!!!);
not shipped any order except the first one, KPI = 108/109 or KPI = 0.99 (!!!)

So, with the same KPI value “for shipped orders” of 90%, the KPI values for “shipped money” can be 8.2% or 99%, depending on the cost of orders served. Suppose that the company has set the same strategic priorities between sales volume and the number of customers, which in our case can be expressed by a complex KPIcomplex as the arithmetic mean of the generators (basic) KPIs:

KPIcomplex = 0.5x(KPI application + KPI money).

For the case of failure to ship the first order, the complex KPI is equal to:

KPIcomplex = 0.5x(0.9 + 0.082) = 0.49.

For the case of refusal to ship any other order, we get:

KPIcomplex = 0.5x(0.9 + 0.99) = 0.945.

It is obvious that the introduction of a comprehensive KPI into the assessment of the warehouse activity, which takes into account both operational and financial indicators, allows motivating the warehouse staff to manage the warehouse shipment process taking into account the cost of the order, that is, its value for the company or its client - thus, the system receives elements of self-organization in management at the lowest level.

Examples of complex KPIs

Developing the idea of evaluating warehouse processes by several parameters of activity, we will give examples of complex KPIs that are used in the practice of our company and can be useful in the “fine” tuning of complex warehouse complexes.

1. The coefficient of complex customer service for the period (calculated in monetary, commodity, positional units).

The use of this indicator allows you to establish the degree of compliance of warehouse logistics with the requirements of sales departments. The complexity of the indicator consists in taking into account the work of the warehouse not only in operational, but also in monetary units, which allows you to take into account the "weight" of the warehouse when evaluating sales results and long-term sales planning. Calculation of indicators is carried out according to deviations according to table 3.

When using the indicator of complex customer service, you can orient warehouse employees to the fulfillment of the financial indicators of the shipment by using weighting factors when calculating the complex KPI. In particular, shipment indicators in m3, lines, units of production may have smaller "weights" in relation to the "financial" shipment indicator.

2. Coefficient of goods acceptance service for the period.

The purpose of introducing this KPI is to establish the degree of compliance of warehouse logistics with the requirements of purchasing departments. Calculation of indicators is carried out according to deviations according to table 4.

Table 3

Comprehensive customer service ratio

Measured indicator	Claimed to the warehouse for shipment	Actually completed by the warehouse	discrepancy	KPI, %
Quantity, m 3	K1	K2	K1-K2	100-(K1-K2)x
Number of lines in orders	L1	L2	L1-L2	100-(L1-L2)x
Number of units in orders	Q1	Q2	Q1-Q2	100-(Q1-Q2)x
Amount / cost of the order in monetary units	S1	S2	S1-S2	100-(S1-S2)x
Complex KPI (%) = 100% for planned daily and seasonal shipments with the availability of resources and technologies			((K1-K2)x100/K1)+ (L1-L2)xx100/L1+(Q1-Q2)x100/Q1+(S1- -S2)x100/S1))/4

Table 4

Service coefficient for receiving goods

Measured indicator (during the period)	Claimed to the warehouse for acceptance	Actually completed by the warehouse	discrepancy	KPI, %
Quantity, m 3	K1	K2	K1-K2	100-(K1-K2)x
Number of deliveries	L1	L2	L1-L2	100-(L1-L2)x
Number of articles	A1	A2	A1-A2	100-(A1-A2)x
Number of product units in deliveries	Q1	Q2	Q1-Q2	100-(Q1-Q2)x
Amount / cost of supplies in monetary units	S1	S2	S1-S2	100-(S1-S2)x
Complex KPI (%) = 100% for planned daily and seasonal deliveries with the availability of resources and technologies			((K1-K2)x100/K1)+ (L1-L2)xx100/L1+(A1-A2)x100/A1)+(Q1- -Q2)x100/Q1+(S1-S2)x100/S1))/5

In order to “focus” the warehouse on the most strategically important area of work on acceptance, it is possible to introduce “weighting” coefficients that make it possible to strengthen the financial or operational indicators of goods acceptance to the warehouse.

3. Resource intensity of operations.

This indicator allows you to manage the efficiency of warehouse operations in terms of resource costs (see Table 5).

Table 5

Commission resource KPI

The correct formation of the KPI system for the warehouse complex allows you to combine the processes of quality management and strategic development through the selection of normative and strategic KPIs.

Main conclusions:

Warehouse system KPIs are formed in order to achieve the strategic goals of the company;
Warehouse KPIs are projections of strategic indicators on logistics (warehouse) activity;
complex KPIs allow for the management and development of the warehouse system in several important characteristics at once.

successful implementation of KPI requires:

detailed formalization of warehouse business processes;
careful rationing of operations;
advanced automated system of accounting and operational calculation of KPI;
using KPI for calculation.

Kirill Tolmachev

General Director of Concept Logic LLC, Ph.D.

KPI of the logistics department of any industrial enterprise directly depend on the general goals of the entire company and its main tasks. The main list of tasks for specialists directly involved in logistics issues at an enterprise may include: constant support for the activities of an enterprise or organization, control over the supply of components and materials, maintaining warehouse stocks at an established, average level and their timely replenishment.

KPI of the logistics department may contain the following indicators:

Timely provision of raw materials, production components or goods to the selling divisions in order to avoid downtime, which may be caused by the unprofessional work of the department;
Optimization of costs associated with the delivery and transportation of goods, etc.

In general, the KPI structure makes it possible to evaluate the effectiveness of previously formed plans, as well as the needs of the enterprise, organization in materials and components. In addition, kpi logistics is guaranteed to reduce the risk of excess (surplus) inventory in the warehouse.

A clear introduction to the work of the purchasing department's kpi allows the company to control the expenditure of its financial resources, as well as the quality of the purchased products. Warehouse KPI establishes the responsibility of each specialist to ensure that the work at the enterprise is clear and structured, so that the stocks stored in the warehouse have time to be sold before their expiration date.

Key performance indicators must be calculated in digital terms. For example, the indicator cannot be the question: did new products arrive at the warehouse this month? Mandatory digital value should be an indicator of work efficiency. Only you can compare it with the value of the previous year and month, as well as make an analysis of the reasons for the decrease or increase in labor productivity. Read the article "

07.06.2011 03:30

What are the dangers of drastic cost cuts?

There is an opinion that it is possible to increase the efficiency of transportation only by reducing costs. I have often come across a situation where transport company for many years the screws were tightened administratively, but it got worse. For example, the foreign owners of a transport company located in the Central region of Russia set the goal of increasing the profitability of the business by 10%. The management decided to reduce costs by reducing the salaries of employees by 10% and the budgets of various services by 20%. As a result, the company received short-term benefits and achieved the required cost reduction in the coming quarter. But literally three months later, this turned into a disaster: more or less normal drivers and repairmen quit, the downtime of their own transport increased several times, traffic disruptions began, and there was an outflow of customers. The company suffered losses (more than 20 million rubles in six months), and in the future it cost a lot of work to regain its former reputation and traffic volumes.

The conclusion suggests itself: by increasing efficiency only by reducing costs, we risk getting a short-term and deceptive effect, which in the future can lead to large financial losses.

How to improve the work of a transport company

A key place in improving the efficiency of road transport is the quality and efficiency of the services provided. This is the main mechanism for attracting new customers and increasing the company's turnover. Imagine that the income of a transport company from one kilometer or machine hour is 100 rubles, and expenses - 80 rubles. So, our goal is not only to reduce costs to 70 rubles, increasing the profit per unit of transport work to 30 rubles, but also to increase the volume of transportation itself. How can I do that?

Separate the responsibilities of logistics and operational services

In any transport company there should be a separation of duties. There is a logistics service that sets the rules for the transportation process, and there is an maintenance and repair service that solves the tasks. A common mistake is the subordination of these services to one leader, for example, the head of the operation service (in a transport company) or the head of the motor transport department (at an enterprise).

The logistics service receives applications, plans efficient routes, coordinates the delivery time and transfers clear and unambiguous tasks to the operational service, then monitors the quality of these tasks during the transportation process. Also, this service is looking for transport on the side in case of shortage of its own. It is possible to subordinate the logistics unit even to a commercial service (which, however, has its drawbacks and is a topic for a separate discussion).

The task of the operational service is to carry out transportation within the specified time on a serviceable transport with a given level of operating costs, as well as to ensure the safety of the cargo, timely submit the car for loading and unloading, ensure the neatness of the drivers and correct communication with the client.

Set up reliable primary accounting

In the absence of a normal accounting system, it is pointless to talk about any changes: you simply will not be able to see and evaluate the fruits of your labors. There are many information systems on the market now that allow you to issue and process waybills, keep machine-by-machine cost records, calculate performance indicators, and much more. Often I am faced with the fact that when trying to implement an accounting information system, a lot of questions arise: how to properly keep records of tires and batteries? how to correctly attribute the costs of fuel and lubricants to a car using the boiler write-off method? how to track the fact of installation of spare parts? what documents should be accompanied internal activities services? In one large trucking company, it took us six months to set up accounting processes - everything was so launched. People just didn't want to work in a new way. In practice, we are constantly faced with the fact that dispatchers, drivers, repairmen and suppliers do not want to keep reliable records, as this not only increases the requirements for the quality of their work, but also reduces the possibility of abuse. So, in one transport company in Kazakhstan (the total fleet of this company was more than 3,000 vehicles), speedometers were broken on 800 cars (out of 1,000) in the regional division. And this applies not only to trucks, but also to cars. There have been cases where speedometers failed (or rather, failed) on new cars worth $80,000. Therefore, the introduction of an information system for accounting for vehicles should be the logical end of a lot of work on setting up primary accounting, and not its beginning.

Per-machine accounting of income and costs is also important if it is necessary to make a decision on the timely renewal of equipment. Consider, for example, does it make sense to keep a truck tractor in the fleet, the repair costs of which eat up all the profits received from this machine, and the sum of them for three years of operation is equal to the cost of a new machine?

Do not trust 100% the information of GPS sensors

For more reliable accounting, GPS sensors are now widely used. They allow you to see the real route of each car, track the dynamics of fuel consumption, speed and much more. It would seem that this is the solution to all problems! However, these devices, like speedometers, are very easy to disable. More importantly, the indicators taken from the GPS sensors are not the basis for changing any primary data indicated in the waybills, and for the subsequent punishment of drivers. There is a known case when a group of activist drivers in a transport company, who were caught using the readings of GPS sensors in draining fuel and attributing mileage on waybills (in collusion with the dispatch service), won a lawsuit. Here is an example of a phrase from the opinion on similar court proceedings: “A prosecutor's check established that the navigators purchased by the company can be used to monitor the condition of vehicles and their location. However, they are not an unconditional basis for calculating the exact mileage of cars, determining actual fuel costs and, accordingly, for attracting drivers to liability for his excess. Indications of navigators can be taken into account in each specific case only in combination with other evidence.

Pay attention to fuel consumption rates and distance guide

Often there is a gold mine in terms of cost reduction. In almost any transport company, it is possible to reduce costs by 15% only by updating the fuel and lubricant standards and distances and starting to control them.

Regulate the activities of the company

In addition to the standards, any operation service must have a set of activity regulations and comply with them. Since this service is an executive structure, the share of amateur activity in it must be minimized, and 95% of actions must be carried out strictly in accordance with the regulations.

Design a system key indicators efficiency

KPI system should be multi-level. For example, the topmost level (we call it the traffic light) is intended for the director of the company and may include indicators such as profit for specific directions of transportation, the share of machine downtime, the number of requests completed on time. These are indicators that allow you to evaluate the activities of a transport company as a whole and provide information for making management decisions. At the operational level, indicators should be applied that directly affect the indicators of the traffic light level and provide an understanding of the causes of problems. These can be, for example, profitability indicators for each transport unit, the percentage of transport loading, the coefficient of technical readiness. In total, there are more than 30 indicators that allow assessing the efficiency of transport, and it is important to choose the right seven to ten of them that will be used in the work of a transport company and objectively reflect the situation.

Why is the level of transport service so important?

No one needs a transport company that has reduced costs to a minimum, makes good profits, but constantly misses the deadlines for transportation due to machine breakdowns or other force majeure situations. The work of the logistics service has no less, and probably even more influence on the company's profit. The main tools here are the correct routing and dispatching of transportation. These tools allow you to:

use the car as efficiently as possible by organizing the transportation of passing and return cargoes, increasing the KPI "loading of vehicles" and "reduction of idle runs";
provide transportation on time with the required quality.

Often, road transportation is only one of the links in any multimodal transportation, and failure to meet deadlines can lead not only to the loss of customers, but also to high operating costs. Suppose your car was delayed on the way for 24 hours, and all this time the railway car was waiting. What expenses will you incur? Now imagine what the fee will be if not a wagon is waiting, but a ship in the port. Very often, the head of the transport company learns about such situations two or three weeks after the shipment, when the company receives invoices for downtime. Given all of the above, I recommend that you do not try to save on logistics staff and automation tools. The investment will pay off many times over if used properly.

A good example of competent dispatching can be given if we turn to the work of the enterprise’s motor transport workshop (ATC) or a logistics unit within a manufacturing or trading company. Probably, many have heard such a word as a central truck. This is the organization of transportation in such a way that one vehicle provides several customer requests at once. It is the central truck that is the main tool of the logistics service, which makes it possible to increase the efficiency of transportation.

On figure depicts the basic principle of a central truck for one of our customers (a large pipe plant). Before the changes, each workshop could order any number of vehicles without justifying its need. Naturally, the production workers did not bother planning the need for this transport, and the ordered cars could stand idle for six to seven hours without work, and if they were used, then at 5-10% of the maximum load. When the scheme of work was changed, the role of the logistics service began to be performed by the central control room. Now the application received by the dispatcher already contained not the number of required units of transport, but the type and volume of transport work. The workshops began to report what they needed to bring and at what time, and the dispatch service already determined the type of transport for transportation and the route. It was from the dispatcher's office that the tasks for transportation came to the trucking department, whose employees only had to complete the tasks received. As a result of the introduction of a central truck, 50% of vehicles were released and third-party orders were organized, since the need for transportation in the region was very high. Additional income allowed to cover the costs of the enterprise for transport support by 70%. If equally effective measures to centralize the use of transport within the framework of the transport company are applied, then the same principles will serve more customers, and therefore increase revenue per unit of transport, which is the goal of increasing the efficiency of transportation.

Speaks CEO

Leonid Shlyapnikov General Director of Sovtransavtoekspeditsiya, Moscow

One of the main issues that we had to solve in Lately, - formation modern system operational management of vehicles. Often it comes down to simple dispatching and routing. But, in my opinion, this is a much more complex issue.

The main business of our company is international transportation by road, however, the share of domestic transportation, transportation to neighboring countries and intracity deliveries is a significant part. We set two goals: to get the maximum operating profit per unit of time per vehicle and to ensure stability by distributing market risks across areas. To this end, a whole range of measures have been taken.

1. Revised marketing and sales strategy. The emphasis was placed on stable contracts with large volumes.

2. Conducted organizational changes. We reorganized the commercial, forwarding services, repair zone so that it would be possible to introduce new fleet management processes.

3. Changed functional business processes. We identified functional business processes in accordance with the directions of transportation and individual large projects. Abandoned duplication of operations and clearly divided responsibilities within the services. This allowed each category of employees to focus on their duties and distribute responsibility between services. For example, to improve efficiency repair work and the intensity of the work of drivers, we have introduced a fleet and convoy management program. All enterprise services interact with the convoy and the car repair shop to speed up the repair cycle, reduce downtime, and optimize routes.

We have implemented a comprehensive automated transportation management system that provides both operational reporting and complete information on the transportation economy based on accounting data. In addition, a new motivation system has been developed. All changes are tied to personal KPIs and to KPIs of individual services. A set of instructions and practical regulations was developed for each category of employees.

Results. We achieved growth in revenue and margins, stabilized relationships with regular large customers, reduced the share of one-time and spot 1 transportation, and also abandoned unprofitable destinations. For example, they stopped working in the Baltic direction, where transport downtime in the queue for border crossings this year reached 11-12 days. They also abandoned the destinations where in 2012 significant dumping was practiced by Belarusian, Baltic and Polish carriers (this mainly concerned France and Italy).

And most importantly, we have achieved that new KPI and the reporting system now allow for a detailed understanding of all the many factors based on the assessment of detailed accounting and financial reporting data. The operational system for analyzing indicators and reports on transport operation is built on the basis of data from various sources. Corporate Information system, integrated with satellite navigation, allows you to receive information about the movement of your own transport both in Russia and abroad online, and they are collected and processed automatically, without human intervention. Thus, the traditional analysis of the ratio of planned and actual values, accounting for operational indicators are now based on the most realistic information, and data can be analyzed for any period of time - a month, a week, a day.

The corporate model we have built allows us to obtain information in two sections: quickly analyze physical indicators and management reporting with any detail (a separate road train, direction of transportation), then retrospectively take into account all the many factors based on accounting data. These two approaches make it possible to make informed organizational decisions regarding the directions of transportation and the intensity of transport, and thus directly affect the efficiency and profitability of the transport enterprise as a whole.

Footnote 1

Spot transportation (from English the financial term spot, which means settlement conditions under which payment and delivery are carried out immediately) - international and domestic transportation that takes place without prior order, maybe even the same day. The cost of such transportation is usually 20-50% higher than market rates. The basic principle of operation: with small mileage of transport, the carrier seeks to receive from the client for transport service how could O more pay. Such a business is not focused on long-term partnerships and can lead to the loss of a client.

CEO, Concept Logic

Magazine "Warehouse technologies", №2 2008

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Management by goals (or management by deviations from goals) in the practice of Russian companies is becoming a standard tool for implementing strategic plans through the organization of effective operational work, which is guaranteed to lead to the achievement of planned indicators. In other words, for each business system, business process, business function, target benchmarks are set - standards, deviation from which is unacceptable. If such a deviation occurs, then a control action should be generated in the system that brings business processes to the established standards of functioning. Standards or management goals in modern business conditions are set using the methodology of forming a balanced scorecard (BSC), and the values of actual deviations from balanced scorecards are objective indicators of the state of the system (KPI).

Strategic and regulatory KPIs

the number of warehouses in the system (under the conditions of development of the warehouse network);
storage capacity (in commodity and/or monetary units);
throughput capacity of the warehouse (in commodity and/or monetary units);
cost of storage and warehouse handling;
operational reliability.

Regulatory KPIs- these are key performance indicators that must be maintained in an unchanged state in the system, playing the role of a control standard. In the context of the warehouse activity, the normative KPIs will be such indicators as:

norms for the performance of technological operations (for example, the temporary standard for loading / unloading a vehicle);
indicators of the quality of operations performed (for example, commissioning);
the standard for the loss of goods/cargo due to the fault of the warehouse (theft, careless handling, personnel errors that caused material damage, etc.)

A system map reflecting approaches to the formation of KPI for a warehouse system is shown in the figure.

The choice of the KPI system should correspond to the actual state of the technological architecture of the warehouse complex and at the same time set the vector of its development or qualitative change. Table 1 on page 32 summarizes the main KPIs recommended by our company for use in mechanized and automated warehouses.

If we now enter into the KPI system for shipment in monetary units, then depending on which order was not shipped, we will get the following KPI values for cases:

order No. 1 worth 100 units was not shipped, KPI = 9/109 or KPI = 0.082 (!!!);

not shipped any order except the first one, KPI = 108/109 or KPI = 0.99 (!!!)

KPIcomplex = 0.5(KPIapplication + KPImoney).

For the case of failure to ship the first order, the complex KPI is equal to:

KPIcomplex = 0.5(0.9 + 0.082) = 0.49.

For the case of refusal to ship any other order, we get:

KPIcomplex = 0.5(0.9 + 0.99) = 0.945.

It is obvious that the introduction of a comprehensive KPI into the assessment of the warehouse activity, which takes into account both operational and financial indicators, allows motivating the warehouse staff to manage the warehouse shipment process, taking into account the cost of the order, that is, its value for the company or its client - thus, the system receives elements of self-organization in management at the lowest level.

Examples of complex KPIs

The coefficient of complex client service for the period (calculated in monetary, commodity, positional units).

Goods acceptance service coefficient for the period.

detailed formalization of warehouse business processes;
careful rationing of operations;
advanced automated system of accounting and operational calculation of KPI;
using KPI for calculation.

Calculation of kpi for the department of transport logistics. The structure of key performance indicators (KPI) for the logistics of the company. Formation of KPI warehouse system

KPI of the logistics department may contain the following indicators:

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