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Performance Metrics Used by Freight Transport Providers - page 14 / 35





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W. Cottrell

Cal Poly Pomona

both efficiency and effectiveness, rather than one or the other, partially because of the difficulty in defining “100% efficiency” or “100% effectiveness.”

Ferreira and Sugut (1992) identified three major performance measures for road-rail container transfer facilities: customer service, operational efficiency, and terminal productivity. The authors noted that an underlying constraint in a performance measure system would be the total capital and operating costs (i.e., budget). Australia’s Bureau of Industry Economics (1992) suggested two types of indicators for the road freight industry: customer service and operational efficiency. Measures within each category were obtained from a survey of (mostly) Australian freight transport providers. The report identified four key customer service measures: on-time pickup (% of pickups), on-time delivery (% of deliveries), loss and damage rate, and proportion of claims paid. Six operational efficiency measures emerged as the most common among the providers surveyed:

  • total kilometers per vehicle per year

  • total ton-kilometers per vehicle per year

  • kilometers traveled empty as a proportion of total kilometers traveled

  • average actual load as a proportion of full load capacity

  • number of kilometers per driver per year

  • fuel usage by vehicle type

Stewart (1995) discussed four “keys” to unlocking “supply chain excellence:” delivery performance, flexibility and responsiveness, logistics cost, and asset management. His suggested performance metrics were as follows:

  • Delivery performance: % of orders fulfilled on or before the customer requested date; % of orders fulfilled on or before the original schedule or committed date.

  • Flexibility and responsiveness: supply chain response time (a sum of four components, including communications to end-product and feeder plants, product sourcing, and lead time).

  • Logistics cost: order management cost; materials acquisition cost; inventory carrying cost; supply chain finance, planning and management information systems (MIS) cost.

  • Asset management: cash-to-cycle time (= total inventory days-of-supply + days-sales-outstanding

    • average-payment-period to suppliers).

Appfel, et al. (1996) described a methodology for determining freight terminal capacity. Two types of freight terminals were identified: flow processing components and stock holding components. Flow processors did not store cargo, and were involved only in transferring goods. Two measures were developed for the two terminal types:

  • Dynamic capacity of flow (tons per year) = effective transfer rate (tons per day) * effective working time (days per year)

  • Dynamic capacity of stock component (tons per year) = effective static capacity (tons) * effective turnovers (per year)

The above measures could be adapted by freight transport providers to their inventory control concerns. Lawrence, et al. (1997) categorized a broad spectrum of “infrastructure industries” into four areas of

performance: price, service, considered, as well as several industry data, were:

labor public

productivity, utilities. The

and capital productivity. measures developed, all of

All freight modes were which were supported with

  • Price: average revenue per net ton-kilometer; waterfront charges per twenty-foot equivalent container (TEU); waterfront charges per ton; standard dry bulk vessel operating costs; long-haul cents per ton-kilometer.


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