Integrating KPIs for improving efficiency in road transport

Abstract

Purpose

The purpose of this paper is to propose and validate a framework for improving efficiency in road transport based on key performance indicators (KPIs) and personnel participation. The use of the “Overall Equipment Effectiveness” (OEE) indicator is widespread in factories. The framework adapts OEE to transport management.

Design/methodology/approach

Research was divided into two phases. The first phase included development of a participative framework, which was based on the authors’ experience and a literature review related to transport KPIs. The second phase involved the validation of the framework, adopting an “Action Research” approach by leading its implementation in a Spanish retailer.

Findings

Implementation of the framework has promoted more efficient transport in the company. The framework could be extrapolated to other companies, particularly, transport and parcel companies. By applying the “Action Research” approach it has been shown that researchers and practitioners can create knowledge by resolving problems that are of interest to both parties.

Research limitations/implications

The framework has been applied in one company and could achieve broader validation. Additionally, integrating only indicators of transport efficiency into the OEE proposal has meant that other perspectives, such as costs or the environment, have not been dealt with directly.

Originality/value

The framework is a new line of research applied to transport management. The academic and business contributions fall into three areas: transport management, organizational change and the methodology. There are few examples that illustrate “Action Research” adoption within the scope of supply chain management.

Citation

García-Arca, J., Prado-Prado, J.C. and Fernández-González, A.J. (2018), "Integrating KPIs for improving efficiency in road transport", International Journal of Physical Distribution & Logistics Management, Vol. 48 No. 9, pp. 931-951. https://doi.org/10.1108/IJPDLM-05-2017-0199