Directness as a key performance indicator for freight transport chains |
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Authors: | Johan Woxenius |
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Institution: | Department of Business Administration, School of Business, Economics and Law at University of Gothenburg, Box 610, SE-405 30 Gothenburg, Sweden |
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Abstract: | From the perspective of a transport service buyer and at the abstraction level of material flows, all transports travel directly from product supplier to product customer. In reality, however, the directness of transport services depends on factors such as geography, available infrastructure, temporary conditions, shippers' qualitative preferences, the economy of and practical possibilities for consolidation and access to return flows. This work examines directness by structuring and elaborating upon the causes of freight transport detours and briefly analysing their effect. The article also includes a discussion about the prospects of capturing directness in a KPI, and how such a measure can be designed, measured, monitored and used, as well as a brief analysis of the consequences of using it for monitoring and controlling supply chain performance. |
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Keywords: | Detour Directness Distance Efficiency Freight transport Key performance indicator |
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