Why is supply efficiency so important?

It’s no secret that the past few years have been challenging for the logistics industry. A myriad of global events saw high demand, higher costs and an industry scrambling to literally deliver what they promised. 

With many lessons learnt, freight forwarding and logistics companies are relying on improved processes and procedures to allow customers to see how they are operating more efficiently.  

Real-time tracking is vital 

Real-time data exchanges with agents, customs, warehousing and other partners is not just a nice thing to have – it is a vital tool for any reputable logistics organisation. Marco Viglietta, managing director of Avion Australia, says the connection and interaction of all parties in the distribution chain helped ensure efficiency. 

“Having shipped items arrive on time is a non-negotiable for businesses, whether they are sole traders or multi-nationals,” says Viglietta. 

“Whether importing or exporting, we understand that clients need to have stock delivered undamaged at their destination efficiently.”  

Avion is a member of the Freight & Trade Alliance (FTA), which provides news on disruptions to the supply chain. This in turn allows us to provide timely updates to customers via our Web Track tool. 

The 5 metrics to measure supply chain efficiency  

Measuring the supply chain efficiency of a freight forwarding company is as simple as asking for their performance on the following industry benchmarks:  

1.  On time delivery 

Measuring the percentage of deliveries that arrive on or before the agreed-upon delivery date is the most important metric in the logistics industry.  

2.  Supply chain cycle time 

The total amount of time it takes to complete a full cycle of all activities in the supply chain, from sourcing raw materials to delivering the finished product to the end customer. The supply chain cycle time includes planning, procurement, production, transportation, storage, and delivery. 

3. Transit time  

Different to on-time delivery yet in the same vein, this metric measures the time it takes for a shipment to reach its destination, from the time it is picked up at the origin. 

4. Damage/loss ratio  

Measures the percentage of shipments that are damaged or lost during transit. This metric can easily be improved by enforcing standard operating procedures for handling goods, loading, and unloading, and undertaking staff training on correct handling techniques and safety procedures. 

5. Utilisation 

This measures the percentage of capacity used by the freight forwarding company across different methods of freight forwarding including trucks, planes and shipping containers. This metric can be improved by load consolidation, route optimisation and capacity planning. 

How can businesses improve their supply chain efficiency?  

All of the above metrics are measurable using a variety of industry-specific tools and benchmarks. Freight forwarding businesses can improve upon such metrics by: 

• Improving visibility 
• Streamlining processes 
• Lean management 
• Collaboration 
• Inventory management 
• Route optimisation 
• Technology adoption.  

An uptick in any of these brings increased customer satisfaction – plus the promise of more business from happy customers who spread the word.  

How Avion is improving efficiency in the supply chain 

With a network of offices and partners in strategic global positions, Avion works closely with international teams to ensure optimum supply chain efficiency. Using an array of digital tools to provide synchronisation of all touchpoints of the logistics supply chain is another cornerstone of Avion’s processes. As Viglietta explains, collaboration and close communication are also key to setting Avion apart from competitors.

“These tools save operational time and reduce human-made mistakes,” he says. “Route optimisation is at the heart of every decision we make – we want the customer to get their delivery in the best condition, in the best time, to produce the best outcome.” 

With 35-plus years in freight forwarding, Avion Australia is a market leader in moving items from one side of the world to the other, efficiently and safely. Learn more about how Avion can help your business, or request a quote.