It pays to know how well you’re performing

A key performance indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. KPIs can be used to evaluate how successful a company is at reaching specific targets. A high-level KPI may focus on big picture performance goals, while a low-level KPI may focus more on the daily processes in each department of an organization, such as marketing or sales.

For port terminals, measuring KPIs to improve operational efficiencies and productivity is crucial. With vessel sizes on the rise, shipping companies are more demanding than ever. However, selecting high-quality KPIs isn’t easy. The best way to evaluate the relevance of a KPI is to use the SMART criterion. SMART is an acronym that typically stands for Specific, Measurable, Attainable, Relevant and Time-bound. You can’t manage what you don’t measure, so when the time comes, use these five conditions to determine the best KPIs for your organization:

• Is your objective Specific?
• Can you Measure progress towards that goal?
• Is the goal realistically Attainable?
• How Relevant is the goal to your organization?
• What is the Timeframe for achieving this goal?

Effectively implementing KPIs requires a well-thought-out strategy. Too often, companies blindly adopt industry KPIs without reflecting on their own organization’s goals. Before applying KPI measurements, organizations should start with the basics and truly understand what their goals are, how they plan on achieving those goals and the members of the organization that will be in charge of implementation and measurement.

For port and terminal managers, and anyone seeking to improve operations and business performance drastically, KPIs are one of the most efficient tools with which to measure and improve terminal-wide performance. Here are six of the key primary indicators every port terminal should track closely:

1. Crane productivity

Crane productivity describes how quickly your port loads and unloads containers off a vessel. Measuring crane productivity is crucial because shipping companies want their vessels to stay on schedule and expect terminal operators to complete their loading and unloading quickly so that the vessel can move to the next port of call.

Tracking crane productivity as one of your six key primary indicators is SMART because time is money and shipping lines will always choose to work with the fastest terminals. Progress for this goal is measured by your port’s efforts to reduce load and unload times. This information is very relevant for shipping companies for decision-making purposes.

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