| People can now send as much cargo as they want | | | | thing cannot be managed if it cannot be measured. |
| with at least 24 hours delivery turnaround time. This | | | | And if something is not manageable, it cannot be |
| is made possible because of the existence of | | | | improved. |
| airplanes and cargo planes. Without these, everyone | | | | So, what are the KPIs that should belong to the |
| will have to wait for days, and even weeks, if ships | | | | scorecard of an air freight company? Actually, there |
| are still the only way to travel across the seven | | | | are many. And as mentioned earlier, these metrics |
| continents of the world. However, there will still be | | | | may vary from one company to another. However, |
| problems that will occur in freight services even with | | | | there are common metrics that are measured and |
| technology around. It is therefore important to have | | | | one of these is booking. |
| standard air freight KPI scorecards to measure how | | | | Booking includes the flight time. This should be |
| effective this service is. | | | | identified right away-and flawlessly executed-so |
| Key Performance Indicators or KPIs are measurable | | | | customers know when their cargos will be sent out. |
| metrics that are incorporated into company | | | | Part of booking is the efficiency in tagging these |
| scorecards. These are used to measure not only the | | | | packages whether they should belong to this flight |
| financial aspects of the company's performance but | | | | number or the other. There will be serious delays if a |
| also customer satisfaction and the actual efficiency | | | | package intended for flight number one was sent to |
| of the activities and processes. This is applied in any | | | | flight number two instead. The standard here should |
| industry and the metrics measured are not the same, | | | | be 100% accuracy. The way it is measured is |
| even for companies that belong to the same | | | | through taking the time the package was taken |
| industry. This is precisely because each management | | | | against the time the package was agreed to be |
| has a different perspective of what is important and | | | | taken. |
| what is not. | | | | Another metric that is all too common is Received as |
| Let us say that an air freight company has 90% | | | | Agreed on Time. This is called RAT. This means that |
| accuracy in delivering the right package to the right | | | | if the promised delivery is within a 24-hour period, the |
| recipient. This may sound good, but in reality, it is not. | | | | recipient of the package should receive the package |
| 90% accuracy means that for every one million | | | | without the specified timeframe and no longer than |
| packages, 100,000 of these are incorrect. This is an | | | | that. Otherwise, it is considered a defective service. |
| alarming number, and for this very same reason, air | | | | This has something to do with booking, too. If the |
| freight companies should develop ways to reduce the | | | | booking is not accurate, there will be a certain delay |
| chances of errors. This can only be done if things are | | | | in the cargo delivery. Of course, the air freight KPI |
| measured effectively. Always remember that one | | | | equivalent for RAT is also 100%. |