Shipping Kpis

One of the first steps in creating a measurement system is to define the measures. Completing a measurement information worksheet for each measure records key information for each part of the measurement system, including how the measure is calculated, the person responsible for the measure, the purpose of the measure, and how the information will be gathered. The balance measure is acomplementary measure that helps ensure the measure is not met at the expense of other parts of the organization. This information, together with the service level agreement, creates the backbone of the measurement system. The following measurement information worksheets are samples to use as guidelines when creating a measurement system for your organization's shipping function.

Measurement InformationWorksheet
Shipping

AVERAGE COST PER HOUSEHOLD GOODS (HHG) AND AIR FREIGHT SHIPMENT
Owner: To Be Determined Purpose and Benefit of Measure: The purpose is to understand the costs of inbound consignments. The benefit is that the measure highlights potential differences in shipping costs by contractor or agency by comparing those to the average cost. Formula and Measurement Tips: Total cost ofall inbound personal HHG shipments/Total number of inbound personal HHG shipments = Average cost per personal HHG shipment Total cost of all inbound air freight HHG shipments/Total number of inbound air freight HHG shipments = Average cost per air freight HHG shipment • • Collect, analyze, and report on a monthly basis. Cost includes the contractors’ cost for shipping, packing, customsbonds/clearances, handling, storage, and freight forwarding. Cost does not include storage charges at dispatch agent.

Data Needed to Support the Calculation: • The total cost can be collected from the invoice database. • The total number of shipments can be collected from the contractor’s database and validated by the client’s file.
For additional information, e-mail apqcinfo@apqc.org. ©2010 APQC. ALLRIGHTS RESERVED.

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Service Level Agreement: • The proper service level will be determined once baseline data has been collected and analyzed. Balance Measures: • Inbound shipment cycle time Definitions: • N/A

WORK BASIS – OUTBOUND SHIPMENTS
Owner: To Be Determined Purpose and Benefit of Measure: To understand the difference between the levels of effort required to process householdgoods shipments. This information is used by the customs and shipping unit to determine resource forecasting and allocation within the unit. Formula and Measurement Tips: Total HHG shipments in period - Total non-military HHG shipments during period = Total military HHG shipments during period Total HHG shipments in period - Total military HHG shipments during period = Total non-military HHGshipments during period Agency work basis = Total non-military shipments x Illustrative time for non-military HHG shipments Military work basis = Total military shipments x Illustrative time for military HHG shipments • • This data is collected at each transaction; activity level is reported quarterly, and work basis reported annually. Annually, the customs and shipping unit will monitor one (1) militaryand one (1) agency outbound household goods shipment to determine an illustrative cycle time for processing and completing all necessary documents and shipping. These illustrative cycle times will be used as a work basis for resource forecasting and allocation within the unit.

Data Needed to Support the Calculation: The data can be collected from: • • annual illustrative cycle time study formilitary and other agency HHG shipments and total HHG shipments from outbound database.

For additional information, e-mail apqcinfo@apqc.org. ©2010 APQC. ALL RIGHTS RESERVED.

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Service Level Agreement: • The proper service level will be determined once baseline data has been collected and analyzed. Balance Measures: • Percentage of effort—outbound shipments • Cycle time for outbound...