Core Benchmarks: Transportation - Tompkins International

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Hot Topic Report

Core Benchmarks: Transportation

Spotlight on Metrics for Truckload,

Less-Than-Truckload, and Parcel

Supply Chain Consortium

Benchmarking & Best Practices

May 2013

www.supplychainconsortium.com

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Table of Contents

Introduction 3

Truckload Metrics 5

Less-Than-Truckload Metrics 14

Parcel Metrics 21

Report Authors 26

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This report offers valuable insight into today’s shipping and transportation industry.

The data on the following pages represent survey responses across several

industries including:

Apparel and Footwear

Department and Discount Stores

Electronics

Food and Beverage

Home Products

Industrial Commercial Manufacturers

Personal Care

Pharmaceutical

Introduction

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Manufacturers, retailers, distributors, and third-party logistics providers (3PLs)

are all represented in the data, which has been formatted by quartile:

Top Quartile = Leaders

Second Quartile = Competitive Advantage

Third Quartile = Competitive Disadvantage

Fourth or Bottom Quartile = Opportunity

Introduction

Truckload Metrics

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On-Time Pickup Percentage

(per the respondent company’s requirements)

Truckload Metrics

Quartile Values

Leaders (top quartile) ≥99.0%

Competitive Advantage (second quartile) ≥97.6% and <99.0%

Competitive Disadvantage (third quartile) ≥90.0% and <97.6%

Opportunity (bottom quartile) <90.0%

Those leading the way in on-time pickup are capable of greater than 99.0%.

The median value is 97.2%.

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On-Time Delivery Percentage

(per customer requirements)

Truckload Metrics

Quartile Values

Leaders (top quartile) ≥98.5%

Competitive Advantage (second quartile) ≥96.0% and <98.5%

Competitive Disadvantage (third quartile) ≥92.0% and <96.0%

Opportunity (bottom quartile) <92.0%

The leaders in on-time delivery are capable of greater than 98.5%.

The median value is 96.5%.

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Orders Shipped Complete On-Time

(OSCOT) Percentage

Truckload Metrics

Quartile Values

Leaders (top quartile) ≥99.0%

Competitive Advantage (second quartile) ≥96.0% and <99.0%

Competitive Disadvantage (third quartile) ≥93.0% and <96.0%

Opportunity (bottom quartile) <93.0%

The leaders in OSCOT are capable of greater than 99.0%. The median value

is 96.4%.

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Orders Delivered Complete On-Time

(ODCOT) Percentage

Truckload Metrics

Quartile Values

Leaders (top quartile) ≥98.5%

Competitive Advantage (second quartile) ≥95.0% and <98.5%

Competitive Disadvantage (third quartile) ≥90.0% and <95.0%

Opportunity (bottom quartile) <90.0%

The leaders in ODCOT are capable of greater than 98.5%. The median value

is 95.0%.

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Billing Error Rate Percentage

Truckload Metrics

Quartile Values

Leaders (top quartile) ≤0.1%

Competitive Advantage (second quartile) ≤1.0% and >0.1%

Competitive Disadvantage (third quartile) ≤4.0% and >1.0%

Opportunity (bottom quartile) >4.0%

The leaders in billing error rate are capable of less than 0.1%. The median value

is 1.0%.

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Claims Incidence Rate Percentage

Truckload Metrics

Quartile Values

Leaders (top quartile) ≤0.2%

Competitive Advantage (second quartile) ≤1.0% and >0.2%

Competitive Disadvantage (third quartile) ≤4.0% and >1.0%

Opportunity (bottom quartile) >4.0%

The leaders in claims incidence rate are capable of less than 0.2%. The median

value is 0.9%.

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Average Capacity Utilization Percentage

(if weighing out)

Truckload Metrics

Quartile Values

Leaders (top quartile) ≥85.0%

Competitive Advantage (second quartile) ≥75.0% and <85.0%

Competitive Disadvantage (third quartile) ≥70.0% and <75.0%

Opportunity (bottom quartile) <70.0%

The leaders in average capacity utilization (if weighing out) are capable of greater

than 85.0%. The median value is 80.0%. Some extremely heavy products are

expected to have very low utilization.

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Average Capacity Utilization Percentage

(if cubing out)

Truckload Metrics

Quartile Values

Leaders (top quartile) ≥95.0%

Competitive Advantage (second quartile) ≥93.0% and <95.0%

Competitive Disadvantage (third quartile) ≥90.0% and <93.0%

Opportunity (bottom quartile) <90.0%

The leaders in average capacity utilization (if cubing out) are capable of

greater than 95.0%. The median value is 93.5%. Large cube products or

unusually shaped products may not be capable of good utilization if cubing

out.

Less-Than-Truckload Metrics Less-Than-Truckload Metrics

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On-Time Pickup Percentage

(per the respondent company’s requirements)

Less-Than-Truckload Metrics

Quartile Values

Leaders (top quartile) ≥99.0%

Competitive Advantage (second quartile) ≥96.0% and <99.0%

Competitive Disadvantage (third quartile) ≥90.0% and <96.0%

Opportunity (bottom quartile) <90.0%

The leaders in on-time pickup are capable of greater than 99.0%.

The median value is 97.0%.

16 Copyright © 2013 Tompkins Supply Chain Consortium. All rights reserved. Confidential and Proprietary

On-Time Delivery Percentage

(per customer requirements)

Less-Than-Truckload Metrics

Quartile Values

Leaders (top quartile) ≥97.0%

Competitive Advantage (second quartile) ≥93.0% and <97.0%

Competitive Disadvantage (third quartile) ≥88.0% and <93.0%

Opportunity (bottom quartile) <88.0%

The leaders in on-time delivery are capable of greater than 97.0%. The median

value is 93.5%.

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Orders Shipped Complete On-Time

(OSCOT) Percentage

Less-Than-Truckload Metrics

Quartile Values

Leaders (top quartile) ≥99.9%

Competitive Advantage (second quartile) ≥97.0% and <99.9%

Competitive Disadvantage (third quartile) ≥92.0% and <97.0%

Opportunity (bottom quartile) <92.0%

The leaders in OSCOT are capable of greater than 99.9%. The median value

is 97.2%.

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Orders Delivered Complete On-Time

(ODCOT) Percentage

Less-Than-Truckload Metrics

Quartile Values

Leaders (top quartile) ≥97.9%

Competitive Advantage (second quartile) ≥94.0% and <97.9%

Competitive Disadvantage (third quartile) ≥89.0% and <94.0%

Opportunity (bottom quartile) <89.0%

The leaders in ODCOT are capable of greater than 97.9%. The median value

is 94.5%.

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Billing Error Rate Percentage

Less-Than-Truckload Metrics

Quartile Values

Leaders (top quartile) ≤0.1%

Competitive Advantage (second quartile) ≤2.0% and >0.1%

Competitive Disadvantage (third quartile) ≤5.0% and >2.0%

Opportunity (bottom quartile) >5.0%

The leaders in billing error rate are capable of less than 0.1%. The median value

is 2.0%.

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Claims Incidence Rate Percentage

Less-Than-Truckload Metrics

Quartile Values

Leaders (top quartile) ≤0.1%

Competitive Advantage (second quartile) ≤1.0% and >0.1%

Competitive Disadvantage (third quartile) ≤3.0% and >1.0%

Opportunity (bottom quartile) >3.0%

The leaders in claims incidence rate are capable of less than 0.1%. The median

value is 0.9%.

Parcel Metrics Parcel Metrics

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On-Time Pickup Percentage

(per the respondent company’s requirements)

Parcel Metrics

Quartile Values

Leaders (top quartile) ≥99.5%

Competitive Advantage (second quartile) ≥98.5% and <99.5%

Competitive Disadvantage (third quartile) ≥97.0% and <98.5%

Opportunity (bottom quartile) <97.0%

The leaders in on-time pickup are capable of greater than 99.5%. The median

value is 98.7%.

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On-Time Delivery Percentage

(per customer requirements)

Parcel Metrics

Quartile Values

Leaders (top quartile) ≥98.9%

Competitive Advantage (second quartile) ≥98.0% and <98.9%

Competitive Disadvantage (third quartile) ≥95.0% and <98.0%

Opportunity (bottom quartile) <95.0%

The leaders in on-time delivery are capable of greater than 98.9%. The median

value is 98.1%.

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Billing Error Rate Percentage

Parcel Metrics

Quartile Values

Leaders (top quartile) ≤0.3%

Competitive Advantage (second quartile) ≤1.6% and >0.3%

Competitive Disadvantage (third quartile) ≤4.0% and >1.6%

Opportunity (bottom quartile) >4.0%

The leaders in billing error rate are capable of less than 0.3%. The median value

is 1.5%.

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Claims Incidence Rate Percentage

Parcel Metrics

Quartile Values

Leaders (top quartile) ≤0.2%

Competitive Advantage (second quartile) ≤1.4% and >0.2%

Competitive Disadvantage (third quartile) ≤2.0% and >1.4%

Opportunity (bottom quartile) >2.0%

The leaders in claims incidence rate are capable of less than 0.2%. The median

value is 1.3%.

26 Copyright © 2013 Tompkins Supply Chain Consortium. All rights reserved. Confidential and Proprietary

To learn more about benchmarking and best practices, additional resources are available to members

through the Supply Chain Consortium: www.supplychainconsortium.com

Qualified companies may join the Supply Chain Consortium’s LinkedIn or Xing Group:

www.supplychainconsortium.com/rc/connections.asp

Bruce Tompkins Executive Director

6870 Perry Creek Road

Raleigh, NC 27616

(919) 855-5527 Office

(919) 345-0479 Mobile

btompkins@tompkinsinc.com

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Chris Ferrell Director

6435 Hazeltine National Drive

Suite 105

Orlando, FL 32822

(407) 362-0369 Office

(919) 624-3947 Mobile

cferrell@tompkinsinc.com

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Report Authors