The key performance indicator mirrors the leading causes of success in any business or a domain. Almost all smart leaders and masters of big data analytics filter data to catch KPIs. They configure profit. Without evaluation, it cannot be possible.
Peter Drucker has once said, “If it cannot be measured, it cannot be managed.”
Certainly, Drucker spotlighted data analytics by saying so, which eventually points at tracking KPIs. Without analysis, running a business is just like walking down a blind alley.
In all, the performance statistics are vital to take out details on the top and the least performers. Once the sublime points come to light, gauging success ratio becomes a piece of pie. You need not take a shot in the dark to choose the profitable way. You will have the torch that guides you to convert them into a cash cow.
Let’s walk through what secret those KPIs hide in the context of fat earning.
What do KPIs tell to transform shipping?
Undoubtedly, the key indicators hide quantifiable evidences of your shipping business performance. Needless to say, they are there in a variety of reports, such as of shipping time, overhead expenses, staff’s performance and a lot more. An expert data analyst churns it through. He, for example, draws a goal chart as a battery in excel to visualise data in a comprehensive form. This is how he fuses understandability to see the whole performance through analytical lens. He drills up and down the logistics and shipping statistics. Eventually, the evidences that skyrocket the revenue and also, the causes that drop it down fetch the attention.
What it means is that the key performers are there to measure, monitor and analyse of what you have shipped. This tracking could sail you across the scarcity of funds with ease. Also, you win over inefficiencies. Thereby, the satisfaction level of customers goes up spontaneously.
Let’s move ahead to interact with how KPIs can help in deep analysis of shipping data.
How do KPIs assist in analyzing shipping data?
It is obvious that key indicators highlight the areas where improvement is needed.
- Damage during shipping: Would you ever accept the broken or damaged product from your eMerchant?
Certainly, you would ask for reimbursement against the loss. Your customers follow your footprints, as they tend to derive value in the return of investment. You will pay them back for the sake of retaining utmost goodwill.
Now, what if your shipment analysis confirms 20 percent loss? Let’s say, you deliver 1000 units per day worth $10,000 a day. If you compute its 20 percent of monthly loss, assuming the loss worth $2000/ per day, it will amount to $60,000 per month (20% of 300,000). It’s a massive loss, which you would like to credit to your bank balance.
This is why the analysis of shipping domain is as necessary, as you monitor other core operations. Here, damage indicators can assist you to identify the cause of least performance in this domain. The culprit could be potholes, diversion point and mishandling etc.. Take preventive steps to get off those reasons of damages. The data analysis could minimize it exponentially.
- Shipping time: Time is money. The analysis of your shipment timing carries the loops that you need to hop through. Catch a glimpse of your shipment report. Filter the time when users got undamaged, partially and fully damaged products. Track the time taken and scan the trends that show delays. This scanning could unveil the looming issues. Underline the deliveries that took long turnaround time. They will be the keys that your need to work on.
In the nutshell, the shipment data analysis can expedite your shipment to ensure staying ahead of your competitors.
- Accurate order delivery: Inaccuracy breeds inefficiency. It is simply because you have to spend more turnaround time and gear up from the scratch. Simply say, discrepancies or anomalies can put a dent on your brand’s image, besides wasting time and money.
Inventory accuracy can help you to track items that were delivered without being damaged. If your shipment data display the least count of incidents, you harvest goodwill besides more orders.
- Cost of shipping: Last but not the least, shipping cost is a key to evaluate profit or loss. Segment shipping cost from scratch till the end of delivery. Split it into different groups to identify the stages where you maximized and minimized expenditure. This kind of cost measuring would hint you where you can maximize saving.
Shipping is the most underestimated area, what eCommerce giants almost fail to attend to. But, it could be the cash cow, converting damage and customer disappointment into money and loyalty. Big data analysis of this domain hides a silver lining. By catching its glimpse, you can save time and money.