The Times Australia
Small Business News

.

Measuring Transportation Performance through Relevant Metrics

  • Written by Anna Melnikova


Transportation channels and systems form vital parts of the global supply chains and logistics networks. Accurately measuring transportation performance should be done via the use of the appropriate metrics.

Measuring transportation of goods and products is always a concern, from the smallest scale to the biggest scale networks. Although the amount of organizational detail and level of complexity of the infrastructure involved may be vastly different, the basic fact remains that these systems require good management to be efficient and competitive with major global supply chains. Moving materials, intermediate goods, and finished products from suppliers to consumers may sound simple on paper, but is rarely ever simple in practice. In fact, the supply chain is composed of many different firms and agencies that of course operate only within a particular sphere of interest. For instance, the original organization that gathers raw materials will, in most cases, be far removed from the eventual organization that distributes the products made from those materials. However, in recent decades the so-called extended enterprise composed of all of these different players self-organizing to optimize the supply chain has been recognized.

Transportation plays a key role in both supply chains consisting of many different organizations down to so-called logistics networks, which refer to the movement of materials and products within an organization. Measuring the performance of transportation systems should be done keeping in mind many different factors and aspects that should be considered equally. For example, although utilizing full truck loads as much as possible would undoubtedly increase efficiency at one level; it may affect inventory management and reduce overall cost efficiency. Even just within the sphere of transportation itself, many factors interact, such as fuel or load efficiency versus timeliness, the management of supply and demand, the flexibility required to respond to changing circumstances, and so on.

Thus, many different measures or metrics should be employed in order to be better able to grasp overall transportation performance. Typically, metrics from different categories such as quality assurance, asset management, finance, storage and resource utilization, and process management should be selected. That is, management should be aware of the metrics in each category that are most relevant to the organization, and do their best to keep track of at least these most important metrics.

One of the most important metrics for global supply chains in keeping track of transportation would obviously be transit time. Simply put, this is the time that a shipment takes to travel from one source to a particular destination. For manufacturers, this would be the time necessary for a shipment from a factory to be delivered to the client’s location. The acceptable and expected values of transit time varies widely since there are many different modes and channels of transport, and local geographical and other conditions play crucial roles. Another metric that is often important to keep track of is the percent utilization of truckload or in general cargo capacity. Ideally, of course, this percentage should be 100%, meaning that all available capacity is being filled and hence is being used fully efficiently. Percentages less than 100% would indicate that the organization is using and maintaining greater cargo capacity (more trucks, for instance) than strictly necessary. These are just examples of the some ways of measuring transportation performance that could be applied to many global supply chains.

Property Times

Rubber vs Concrete Wheel Stops: Which is Better for Your Car Park?

When it comes to setting up a car park in Perth, wheel stops are a small feature that make a big difference. From improving driver accuracy to preventing costly damage, the right choice between rubber and concrete wheel stops could save you time, mon...

What Is the Australian Government First Home Buyers Scheme About?

For many Australians, buying a first home can feel like a daunting task—especially with rising property prices, tight lending rules, and the challenge of saving for a deposit. To ease this burden, the Australian Government has introduced a First ...

Flipping vs. Holding: Which Investment Strategy Is Right for You?

Are you wondering whether flipping a property or holding onto it is the better investment strategy? The answer isn’t one-size-fits-all. Both strategies have distinct advantages and risks, and choosing the right one depends on your financial goals, ...

A Guide to Smarter Real Estate Accounting: What You Might Be Overlooking

Real estate accounting can be a complex terrain, even for experienced investors and property managers. From tracking rental income to managing property expenses, the financial intricacies of real estate demand more than just basic bookkeeping. A si...

Food & Dining

Not all processed foods are bad for you. Here’s what you can tell from reading the label

If you follow wellness content on social media or in the news, you’ve probably heard that processed food is not just unhealthy, but can cause serious harm. Eating a diet dominated by highly processed foods means you’re likely to consume more kil...

Italian Street Kitchen: A Nation’s Favourite with Expansion News on Horizon

Successful chef brothers, Enrico and Giulio Marchese, weigh in on their day-to-day at Australian foodie favourite, Italian Street Kitchen - with plans for ‘ambitious expansion’ to be announced in the coming months.  Italian Street Kitchen: A slice o...

Après Skrew: Peanut Butter Whiskey Turns Australia’s Winter Parties Upside Down

This August, winter in Australia is about to get a lot nuttier. Skrewball Whiskey, the cult U.S. peanut butter whiskey that’s taken the world by storm, is bringing its bold brand of chaos to Aussie shores with Après Skrew: a mash-up of alpine energy...

450 people queue for first taste of Pappa Flock’s crispy chicken as first restaurant opens in Queensland

Queenslanders turned out in flocks for the opening of Pappa Flock's first Queensland restaurant, with 450 people lining up to get their hands on the TikTok famous crispy crunchy chicken tenders. The highly anticipated opening comes after months of d...

Business Times

From Farms to Festivals: How Regional NSW Is Repurposing Shipping…

Regional NSW communities are repurposing containers for farms, tourism, and events Farmers and small businesses use them...

Nail it with points: Flybuys members can redeem points for instan…

Flybuys launches new in-store redemption at Bunnings stores across Australia Tuesday 19 August, 2025 – Flybuys, Australia’s ...

Understanding Energy Use Patterns by Season

Australia’s climate changes noticeably across the year. These seasonal changes don’t just affect what we wear or how we trave...

The Times Features

Do you really need a dental check-up and clean every 6 months?

Just over half of Australian adults[1] saw a dental practitioner in the past 12 months, most commonly for a check-up[2]. But have you been told you should get a check-up and c...

What is a Compounding Pharmacy and Why Do You Need One in Melbourne?

Ever picked up a prescription and thought, this pill is too big, too bitter, or full of things I cannot have? That is where a compounding chemist becomes important. A compounding p...

Deep Cleaning vs Regular Cleaning: Which One Do Perth Homes Really Need?

Whether you live in a coastal home in Cottesloe or a modern apartment in East Perth, keeping your living space clean isn’t just about aesthetics, it’s essential for your health and...

Rubber vs Concrete Wheel Stops: Which is Better for Your Car Park?

When it comes to setting up a car park in Perth, wheel stops are a small feature that make a big difference. From improving driver accuracy to preventing costly damage, the right c...

Not all processed foods are bad for you. Here’s what you can tell from reading the label

If you follow wellness content on social media or in the news, you’ve probably heard that processed food is not just unhealthy, but can cause serious harm. Eating a diet domin...

What happens if I eat too much protein?

The hype around protein[1] intake doesn’t seem to be going away. Social media is full of people urging you to eat more protein, including via supplements such as protein sha...