One of the key ways owner-operators thrive is by setting and achieving goals. However, sometimes it’s difficult to tell if you’re reaching specific goals.

That’s where key performance indicators (KPIs) come in. A KPI is a way to measure how well owner-operators are performing in their strategic goals and objectives.

Keeping track of your KPIs is essential for your business, and below we’ll tell you seven reasons why.

7. Profit

Without a doubt, the profit that you earn is by far the most important measurement of how successful your enterprise is. Not only is profit important, but it’s easy to keep track of too.

Analyzing both gross and net profit margins will help you see if your business is generating the return you want.

6. Cost-Per-Mile

To run a successful business, you’ll need to know your operational costs on a per-mile basis. Once you know what your cost-per-mile is, it’s simple to know how much to charge customers.

5. Revenue Growth Rate

To see if your business is growing, you’ll want to consider your revenue growth rate. By figuring out your revenue growth rate, you’ll be able to see if your growth is growing, plateauing, or going down.

To calculate revenue growth rate, take last year’s revenue and subtract the current revenue from it. Then, divide that number from last year’s revenue and multiply by 100.

4. Day Sales Outstanding (DSO)

Day sales outstanding helps you determine your company’s cash flow. Knowing your cash flow is important for knowing if you’re going to run into any credit risks—so you should know your DSO at all times.

3. Equipment Utilization

Remember, efficiency is vital among all businesses, but it’s especially important for owner-operators. After all, keeping your trucks on the road is what brings home the money.

That means that you’ll want to determine how efficiently your trucks are running. That could be through fuel efficiency, routes, how often tires need to be replaced, and so on.

You’re likely familiar with all the work that goes into taking care of a truck. However, you’ll want your trucks at peak efficiency to keep your company profitable.

2. Loading and Unloading Time

A long loading time or unloading time leads to inefficiency and costs to the company. On top of that, long loading or unloading times can lead to rerouting, wasting time and money.

If you can identify long loading or unloading times, you can completely avoid this problem. You’ll want to identify where these long loading/unloading times are happening and cut them out if they become too costly.

1. Freight Claim

Lastly, you’ll want to analyze the number of freight claims that you have. More specifically, you’ll need to look at the number of resolved claims and resolution times.

The quicker you resolve claims and the better the customer service, the more loyalty you’ll have from customers.

Utilize KPIs to Grow Your Trucking Business

Remember that there are many KPIs, and different owner-operators will need to look at different KPIs. What’s important is that your business starts using KPIs to get more information about how your business is performing.

7 Reasons Why All Owner Operators Should Track Their Key Performance Indicators (KPIs) was last modified: by