KPIs (Key Performance Indicators) are key performance indicators that provide a comprehensive overview of a company’s performance. In the case of a logistics provider, monitoring specific KPIs for warehouse management and dispatch organisation allows you to identify areas for improvement to maintain high service and safety standards

Specific KPIs for warehouse management, transport and shipping

When assessing the performance of a logistics provider, it is essential to closely monitor the following KPIs, which measure punctuality, accuracy and quality in warehouse, transport and shipment management. These indicators provide a clear view of operational efficiency and the level of service provided:

  • On-time good receipt: ratio between the total number of orders loaded in a target time and the total number of orders received.

  • Dock-to-stock time: total time taken to handle a good from the moment it is unloaded in the warehouse until it is checked, loaded into the system, stored and made available.

  • On-time good issue: the ratio between the total number of orders prepared and loaded onto the medium for delivery in a target time and the total number of orders received.

  • Order accuracy: percentage of orders, or total order lines, prepared correctly without errors.

  • Inventory accuracy: the level of alignment of accounting inventory balances with available physical inventory.

  • Transit time: time taken to transport goods from the point of origin to the point of destination.

  • On-time delivery (OTD): percentage of deliveries made within the agreed or scheduled time.

  • First attempt delivery rate: percentage of successful deliveries on the first attempt.

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Other indicators to monitor in logistics

In addition to the main KPIs, several other indicators provide a more comprehensive view of logistics performance.

Quality KPIs

  • Damage Rate: percentage of damaged deliveries or orders out of the total handled.

  • Return Rate: percentage of orders returned by customers.

  • Claims Percentage: percentage of claims received out of total shipments.

Efficiency KPIs

  • Cost per Mile/Kilometer: cost incurred per mile or kilometre travelled.

  • Fuel efficiency: quantity of fuel consumed per unit of distance travelled.

  • Warehouse utilisation: percentage of utilisation of available warehouse space.

Financial performance KPIs

  • Revenue per shipment: revenue generated per shipment made

  • Operating margin: operating profitability expressed as a percentage of revenue.

  • Cost to serve: total cost of providing logistics services (warehouse and shipment) to customers.

Security KPIs

  • Incident Rate: number of incidents or accidents per unit of time or number of shipments.

  • Compliance Rate: percentage of compliance with industry regulations and laws.

Innovation and Improvement KPIs

  • Technology adoption: level of implementation of new technologies such as cyber security.

  • Continuous improvement initiatives: number of continuous improvement initiatives undertaken and completed.

Environmental KPIs

  • Carbon emissions: the amount of CO2 emissions generated by transport activities.

  • Waste management: efficiency in the management and recycling of waste generated.