LPI definition

The LPI (Loading Performance Indicator) is an indicator that shows how efficiently the loading capacity is utilized. The better the planning and the more suitable the equipment, the higher the efficiency. Various factors influence this:

• Effective bundling of shipments;
• Fewer kilometers between stops;
• Empty driving;
• Roadworks;
• Traffic jams, detours;
• Time windows, SLAs (Service Level Agreements), time slots, and delivery times;
• Type of equipment that can access a location.

The higher the LPI, the better the vehicles are utilized. This means fewer vehicles are needed, and fewer kilometers need to be driven. This allows us to use the available trucks and roads more intelligently.

The LPI is a weighted average load. The LPI is fundamentally expressed in weight or volume. These are actual limiting factors because you can never load more than the maximum load capacity or exceed the maximum volume of a vehicle. Therefore, the maximum LPI depends on the vehicle's maximum load capacity.

When evaluating how well trucks perform their work, the actual driven distance (ADD) is not always a useful metric. This is because it does not indicate whether a truck has taken a detour, which can make the numbers look better without actually being more efficient.

Therefore, it is better to use the great-circle distance (GCD). The great-circle distance is the straight line between the pick-up point and the delivery point. This provides a fairer picture of how well the transport is actually performing, and it is easy to calculate. It also doesn't matter whether you measure cargo in tons, cubic meters, pallets, or containers—as long as you use the same unit for the entire trip

Calculating LPI

The formula for calculating the LPI is quite simple.

Numerator: Calculate the great-circle distance (GCD) between the pick-up point and the delivery point for all orders, multiply this by the cargo to be transported, and sum these values.

Denominator: The total distance the vehicle has actually driven (ADD).

Result: The LPI in the unit used for the calculation (e.g., tons).