The essence of the air transport KPI

People can now ship as much cargo as they want with a delivery turnaround time of at least 24 hours. This is possible thanks to the existence of airplanes and cargo planes. Without these, everyone will have to wait for days, and even weeks, if ships remain the only way to travel across the world’s seven continents. However, there will still be problems that occur in charging services, even with the available technology. Therefore, it is important to have standard air transport KPI dashboards to measure the effectiveness of this service.

Key Performance Indicators or KPIs are measurable metrics that are incorporated into company dashboards. These are used to measure not only the financial aspects of the company’s performance, but also customer satisfaction and the actual efficiency of activities and processes. This applies to any industry and the metrics measured are not the same, even for companies that belong to the same industry. This is precisely because each management has a different perspective on what is important and what is not.

Let’s say an air carrier is 90% accurate in delivering the correct package to the correct recipient. This may sound good, but it really isn’t. 90% accuracy means that for every million packets, 100,000 of them are incorrect. This is an alarming number, and for this very reason, air carriers must develop ways to reduce the chances of errors. This can only be done if things are measured effectively. Always remember that something cannot be managed if it cannot be measured. And if something is not manageable, it cannot be improved.

So, what are the KPIs that should be part of the scorecard of an air transport company? Actually, there are many. And as mentioned above, these metrics can vary from company to company. However, there are common metrics that are measured and one of them is booking.

The reservation includes the flight time. This needs to be immediately identified, and seamlessly executed, so customers know when their loads will be shipped. Part of the reserve is the efficiency in the labeling of these packages, whether they belong to this flight number or the other. There will be serious delays if a package destined for flight number one is sent to flight number two instead. The standard here should be 100% accuracy. The way it is measured is by comparing the time the package was taken with the time the package was agreed to be taken.

Another metric that is all too common is Received as agreed on time. This is called RAT. This means that if the promised delivery is within a 24-hour period, the recipient of the package must receive the package within the specified deadline and no more than that. Otherwise, it is considered a faulty service. This also has something to do with the reserve. If the reservation is not accurate, there will be some delay in the delivery of the cargo. Of course, the air cargo KPI equivalent for RAT is also 100%.