USING EFFECTIVE ANALYTICS FOR CONTROLLING YOUR PARCEL SPEND Measurement is the key to effective management, so make sure you’re measuring the correct data.
t is common knowledge that measurement is the key to effective management. This is especially true for shippers attempting to manage their parcel programs and better control their costs. In fact, a recent survey conducted by Veraction to assess the challenges facing shippers today as they work toward turning their raw parcel data into meaningful and actionable insights highlighted just how important (and difficult) effective measurement and analysis of parcel spending can be. Consider the following findings:
24 PARCELindustry.com MARCH-APRIL 2018
BY STEVE BEDA Metrics and key performance indicators (KPIs) are critical to controlling costs – Nearly two-thirds of all respondents reported that they review cost metrics on either a daily or weekly basis. Producing metrics and KPIs are resource-intensive – Thirty-three percent of respondents reported that they utilize two or more resources to produce metrics. Nearly two-thirds of respondents reported dedicating at least one resource to this task. Producing metrics and KPIs are time-intensive – Nearly half of all
respondents reported that they spend more than 10 hours per week generating and analyzing metrics. Identifying variances in spending is difficult – Almost 70% of respondents require five or more hours per week identifying and understanding variances in their spending against either planned or historical performance. Over 10% of respondents require more than 12 hours per week. Data analysis requires multiple sources – Over 75% of respondents are dependent on more than two data sources for their parcel cost analysis. The findings reinforce much of the conventional wisdom that exists today
PARCEL Mar/Apr 2018