Are you tracking these five crucial transportation logistics KPIs? 

Organizations that not only track key performance indicators (KPIs), but also act on that data, operate in the spirit of, “what gets measured gets improved.” 

While the test of time has proven that KPIs are SMART-goal-approved ways to measure—and thus advance—nearly every aspect of your organization, this post has a narrow focus: transportation logistics.  

Why should I track logistics KPIs? 

If done right, keeping close tabs on your transportation metrics will not only help run an efficient organization, but most importantly, it will position you to better service your customers. 

Businesses that have used metrics to optimize their supply chains report 15% lower costs. And  up to 84% will stop buying from a retailer after just one poor delivery. 

There are many choices when it comes to which supply chain KPIs to track. But consider the following five to be “key,” in favor of other metrics  

1. Transportation cost  

If you don’t know what you’re spending, it’s difficult to control costs. Consider this to be a combination of several KPIs, including freight cost per unit, inbound freight cost as a percentage of purchases, outbound transportation cost as a percentage of sale, and freight bill accuracy.  

2. On-time pickups and on-time deliveries 

Minimizing delays is a sure-fire way to satisfy increasingly impatient customers.  

3. Rate of returns due to error 

This metric should include shipment damage as well. Nearly 80% of consumers will not consider repeat business if their delivery arrives incorrect or damaged.   

4. Perfect orders 

Otherwise known as “on time and in full,” this is a good overall average to tracks, particularly if broken down by shift, location, data, etc.  

Improving your perfect order percentage and getting close to 100 can be a key differentiator. 

5. Shipping time 

Nearly 55% of abandoned carts are the result of estimated delivery times perceived as too-long by consumers, with 40% of shoppers saying a delivery estimate of more than two days will stop them from making a purchase. 

Get help moving the needle on supply chain KPIs 

With the potential to cut costs and increase customer satisfaction, keeping track of these logistics metrics is a great place to start:  

1. Transportation cost  

2. On-time pickups and on-time deliveries 

3. Rate of returns due to error 

4. Perfect orders 

5. Shipping time 

Once you’re  measuring supply chain KPIs, be sure you get management involved, focus on a handful of metrics most critical to your business needs, communicate your goals broadly and, most importantly, put corrective action plans in place to address any action items. 

Finally, if you choose to partner with a logistics provider to track logistics KPIs, be sure whoever you select is experienced, trustworthy and reliable. 

AIT’s freight forwarding experts are committed to best-in-class customer service. That’s why our in-house technology team uses powerful proprietary systems to consolidate shipment details from all sources in a unified, easy-to-use dashboard. 

To learn more about what AIT can do for you, contact a representative today.