EJ: The forwarding metric that matters

JOC‘s Eric Johnson writes:

The value of technology in any circumstance generally needs to be defined by a metric or set of metrics. Sometimes, those metrics can be intangible and hard to actually measure: likeability, aesthetics, positive feelings engendered. But most of the time (and almost universally in logistics), a metric related to technology has to be numerically measurable.

So then, the question becomes, which measurable metric to use. Cost savings or revenue growth? If it’s cost savings, where did the cost savings come from? Reduction in employees, or less time per employee spent on a task? Reduced spend to suppliers? Similarly, if it’s revenue growth, what type of revenue growth? Expansion of customer base, or expansion of revenue within the existing customer base?

Obviously, the answers to these questions will depend on which type of company we’re talking about and then, based on the problems the individual company is out to solve. So let’s get more specific and talk about a metric that is, and will increasingly, drive technology adoption from forwarders: productivity per employee. 

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