The Forwarding Metric That Matters
Third party logistics providers (3PLs) generally have two ways to turn investment into technology into tangible financial results. They can use technology to expand the size of the market they target. Or they can use it to become more efficient operators. While it can be difficult for 3PLs to measure the success of implemented technology, one purely financial metric — revenue per employee — has become one barometer of how such deployments affect a 3PL’s overall efficiency. For shippers, the revenue per employee of a given 3PL may not seem to matter much, but the metric can shed light on a 3PL’s priorities and the type of service bundles it targets with shipper customers. This session will focus on how 3PLs can go past the abstract notion of technology "improving things" and move toward concrete metrics against which they can show whether their investment has succeeded. The session will also discuss other metrics for operational efficiency, and whether new technology providers are necessitating a change in those metrics.