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:
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.