- Consumer goods

How To Measure Delivery Efficiency

In a world of internet communication, e-commerce and transportation accessibility, delivery of goods, parcels and other supplies have never been this easy, fast and efficient. From tulips to chocolate cakes, letters to Chihuahuas, it is now more possible to send almost anything within a short period of time. But with all these advances going on around us, how do companies measure delivery efficiency? Do all couriers, cargo services and transpo networks follow certain standards in the industry? Find out about how your parcels are sent from pick up to destination. And learn how companies are able to profit on delivering even the most delicate cargo there can be.

Measuring the performance of a delivery company often involves key persons that do research, monitoring, gauging, assessment and even interviews on customers regarding their services. These key persons may either be company designated or an agency. Most of the time however, the researches are in house workers. The process, oftentimes, entail the use of a method, strategy and physical resources such as a performance management software to help them track the efficiency of their delivery. The main objective of measuring delivery efficiency is to be able to obtain information on their speed, competence level, customer satisfaction or feedback. These data will help a delivery company make major decisions such as enhancing quality of service, upgrading equipment, vehicles and manpower. And in some cases, the results will lead to the restructuring of the business organization.

Before the research begins, the process starts by identifying the key aspects of the operation. One of the areas to consider is the points of delivery. Generally, it involves four points of delivery – the point of production, points of storage, point of sales and point of utilization. Consumer goods like canned goods, cosmetic products, laundry products and house chemicals are usually sent from the origin of production, for example, farm or factory, to the point of sales or the retailer where the buyer or ultimate consumer buys the products who is then accountable for bringing the goods to the point of utilization. In ordinary circumstances, goods from the point of production may pass through the point of storage in the form warehouses before reaching the point of sales.

In other cases like e-commerce, factory sales and catalogue trading, the goods are delivered straight from the point of production or storage to the point of consumption, thereby eliminating the number of points. Not all businesses however are engaged in the four point delivery. A pizza restaurant for example engages in a retail-to-consumption point of delivery.

The second aspect to consider is the mode of delivery or simply, the means of transporting the goods. There are basically four modes of delivery – air, land and water. Small jets, choppers, freight aircraft, water rafts, ferries, fishing or merchant boats, trailers, trucks, vans, motorcycles and even bikes are just some of the most common means of transportation. The third aspect involved is the frequency of delivery. Researchers need to know the periodic schedule of the delivery to avoid delay or damage to the goods. Eggs, for example, need to be delivered more frequently, usually, weekly.

By identifying these very important elements, the researcher will then be able to measure if the goods are delivered intact and in good condition. If there is any weakness in the process, recommendation will then be made to improve service such as adding more vehicles, or adding more points of storage, etc. The process may be complex but in reality it has helped hundreds of delivery companies around the world profit more. Learn to measure delivery effectively, start by knowing the factors.