No matter how automated it is, fleet management requires an essential human component. Said component falls on the figure of the traffic manager, who is the person in charge of the operational decisions of the logistics chain.
There are few positions so strategic. A fleet manager is obliged to lead each of the actions of the supply chain, from the planning of shipments or services, to the management of staff breaks and the preparation of periodic reports on the activities carried out under his command.
The key to this is continuous evaluation, that is, the way in which a fleet manager is able to measure the actions and their results and to intervene in a timely manner in the stages of the logistics process that require it.
The 10 KIPs that a traffic manager should always keep in mind.
Having said the above, the question that arises is: how do you know if the action of a traffic manager is being really effective? Or better yet, what indicators or KIPs should be fixed by those who hold this position in a company?
Of course, the answers vary depending on the needs and nature of each case. The supply chain of a national parcel company is not the same as that of a municipal passenger transport company.
Even so, it is true that elements common to traffic managers can be mentioned — regardless of their sector of performance — to determine the evolution of logistics actions. Which is it? Here are some:
1. Delivery time
Also known as Lead Time: it is the time in which the product leaves the warehouse and reaches its final destination.
2. Quantity of cargo to be transported
For this, other factors must be taken into account such as the number of orders — daily, weekly or monthly —, the physical measurements of the load and the capacity of the fleet vehicles.
3. Operating expenses
Fuel, maintenance, fleet performance – all these KIPs fit here. It is also pertinent to include added expenses.
4. Security of resources
We are talking about both human and technical resources. For example, it is as important to ensure the conditions in which merchandise is transported as the well-being of the drivers themselves.
5. Replacement of employers
In this case, the relationship is established between the number of admissions or hirings and the number of dismissals.
6. Inventory rotation
The traffic manager must manage the consumption of a good or service with the availability of the company to continue offering it. The warehouse status is the best way to establish this relationship.
7. Depletion of inventory
For example, it is vital to ask yourself how often this exhaustion occurs and if the causes are operational or of another nature.
8. Complaints or incidents
We talk about customer complaints at any stage of the process. A high figure in this sense would speak ill of the supply chain, while a low or null figure would indicate effective management.
9. Unplanned shipments or services
This indicator generally reflects the appearance of new trends in the markets and business opportunities.
10. Utility final transportation
This value is obtained after dividing the final costs of the service or delivery by the value of the total distributed load, after which it is determined whether the actions are being profitable or not.
One last tip in line with the above: if your intention is to establish KIPs for the effective work of your traffic manager, do not forget that these indicators must be quantifiable, measurable, temporary and relevant. If these four conditions are met, your processes will improve and you will have taken the right path.