What are Logistics KPIs and Why Are They Important? Logistics Key Performance Indicators (KPIs) are quantifiable metrics used to evaluate the efficiency, effectiveness, and overall performance of logistics operations within a supply chain. These metrics provide valuable insights into various aspects of logistics processes, enabling companies to make data-driven decisions and optimize their operations. Logistics…
How are drayage rates structured? Drayage rates form the backbone of short-distance freight transportation costs, typically covering the movement of goods between ports, rail yards, and nearby warehouses or distribution centers. The structure of these rates reflects the complexity and variability inherent in the drayage process. Base Rate At the core of drayage rate structures…
How is turnaround time calculated? Turnaround time (TAT) is a critical metric in logistics and operations management that measures the total time taken to complete a process from start to finish. Calculating turnaround time accurately is essential for optimizing efficiency and improving overall performance. The basic formula for calculating turnaround time is: Turnaround Time =…
Why is port turnaround time important for maritime logistics? Port turnaround time serves as a critical metric in the maritime logistics industry, directly impacting the efficiency and profitability of shipping operations. This key performance indicator measures the duration a vessel spends at a port, from its arrival to departure, encompassing activities such as berthing, cargo…
Who are the key players involved in the drayage process? Drayage shipments involve several critical stakeholders working in concert to move freight efficiently over short distances. Understanding the roles and responsibilities of each player is essential for smooth drayage operations. Shippers Shippers initiate the drayage process by requesting transportation for their goods. These entities can…
What is a yard management system? A yard management system (YMS) is a specialized software solution designed to streamline and optimize the operations within a facility’s yard or container terminal. This sophisticated tool serves as the central nervous system for managing the movement, storage, and processing of trailers, containers, and other assets within the confines…
What is a yard check and why is it important? A yard check is a systematic process of accounting for and verifying the status of all trailers, containers, and other assets within a logistics facility’s yard. This critical operation involves physically inspecting and documenting the location, condition, and contents of each asset to ensure accurate…
Truck turnaround time is a critical metric in the logistics and transportation industry that measures the total time a truck spends at a facility from arrival to departure. This comprehensive measure encompasses various processes, including check-in, unloading or loading, documentation, and check-out. Understanding and optimizing truck turnaround time is essential for improving operational efficiency, reducing…
What is Truck Turnaround Time? Truck turnaround time, also known as truck turn time or dwell time, refers to the total time a truck spends at a port or terminal facility from arrival to departure. This includes the time required for the truck to enter the gate, wait in queues, load or unload containers, undergo…
What is velocity in supply chain management? Velocity in supply chain management (SCM) refers to the speed at which materials, information, and finances flow through the entire supply chain network. This concept encompasses the rate at which products move from suppliers to manufacturers, distributors, retailers, and ultimately to end consumers. Supply chain velocity is not…