Companies in mid-stage should pay attention to customer satisfaction, business recognition and monthly revenue. Established organizations should concentrate on churn rate and cost per acquisition. Metrics in supply chain management are critical for making sustainable improvements, and freight cost per unit is a testament to that notion. One of the most important supply chain KPIs for any scaling business, freight cost per unit will provide you with a solid insight into how economically you can ship your products.

shipping metrics

Because inaccuracies can happen throughout the delivery lifecycle, it is difficult to track the accuracy rate as it relies on drivers, operations managers, or customers to report errors. The percentage of orders executed free of errors when compared against the total number of orders delivered. Also called the perfect order measurement, it lets you identify inaccuracies during the delivery process, either as failed deliveries, mistaken orders, returned, or damaged goods.

You need to set clear goals and make them easy to understand what exactly you want to achieve. Apart from that, they also offer a sensible one-payment scheme and a dedicated staff to help you with your concerns at your beck and call. With its self-hosted setup, you don’t have to worry about exposing your data to those who don’t need to see it. FedEx Ground® FedEx Ground® is a day-certain service offered by FedEx that includes any parcels being shipped by … This means that it takes 39.12 days for ABC company to sell its entire inventory.

Enterprise resource planning software can also help with overall supply chain management and optimization. Measuring your on-time delivery metrics is important because they play a crucial role in your business’s success or failure. When you deliver your products to shoppers on time, you increase customer loyalty, which translates torepeat business. Order Fulfillment MetricsAccurate orders with quick turnaround times begin with fast and accurate inventory receiving.


Security is especially important to companies shipping cargo that might be at higher risk for theft—pharmaceuticals or consumer electronics, for example. While safety on the road is important to all shippers, Wolfe says it’s particularly important in certain situations. He cites food processors that struggled to redirect shipments to channels that were still operating when restaurants and event venues shut down. These are the objectives and goals around each business function, department or team. It’s a good idea to solicit the help of a subject-matter expert who has a deep understanding of that department’s work.

Couriers may arrive at an address only to find they can’t access the building or that there’s no obvious and secure place to leave a package. That means a delay in delivery until you can get more information from the customer. As a result, metrics should never be used to browbeat suppliers into compliance or as a method for collecting penalties and fees. Inaccurate data is often just as bad, if not worse, than no data, and you can often fill in any data gaps through the use of a B2B data solution that auto-decrements. In the United States it is estimated that the accuracy of inventory levels that suppliers give to retailers is only around 55-65%. According to a 2010 Accenture study, during the crucial holiday season there could be as much as a 67% rate of online delivery failure.

The 2020 DC Measures benchmarking report found order picking accuracy as the third most important benchmark for warehouses. 48% of online customers are willing to spend more for a product if it comes with fast shipping. Automate these tasks with one of Sifted’s Logistics Intelligence solutions. According to a Voxware study, 69% of customers are less likely to purchase again from an eCommerce seller if an order is not delivered within two days of the promised delivery date.

Inventory accuracy and minimizing stockouts are very important to customer satisfaction, but a few other metrics also impact the ability to meet customer expectations. This measures the number of orders or order lines shipped on time and without backorders or shortages. This is calculated by dividing the total number shipped in full and on time by the total number scheduled. This is the total dollar value of sales lost or refunded due out-of-stock supply issues divided by the total dollar value of customer sales over the same period of time, expressed as a percentage. If you have poor inventory management, you may over-sell products when you don’t actually have them in stock. After a customer places an order with out-of-stock items, you’ll have to let them know, cancel and refund their order, and lose that sale.

How DashboardFox Can Help in Logistics and Shipping

El-Dardiry adds that Transfix uses technology to help carriers optimize loads and deliver goods on time. “We need to monitor where carriers are on the previous load—are they on track? If not, they won’t be on track for the next load, so we know to dispatch another truck for that so we deliver on time,” he says. While using GPS devices for tracking driver and freight location is standard, “We now have technology that’s affordable enough for shippers to track their own freight,” says Wolfe.

Again, according to Accenture, late deliveries can rise up to 12% due to stock out situations during the Christmas season. What should be measured for this metric, therefore, is everything that happens before an order is handed over to a carrier. Complications, however, arise from the fact that once a supplier ships an order they no longer have control over what happens to it. Late and incorrect shipments can often be the fault of the carrier, not the supplier. Upgrading is also useful for making sure that certain products such as chocolate reach a customer quick enough to avoid melting or spoilage. Inventory data accuracy is somewhat difficult to gauge as only the supplier has access to its own inventory.

Procurement teams continue to struggle with finding available suppliers and shipping capacity to enable supply chain responsiveness. The post Top 10 Metrics to Track and Manage Risk in the Supply Chain – Part Dedicated Software Development Teams 1 appeared first on Transportation Management Company | Cerasis. We’ve discussed the basics of OTIF and the fundamentals of OTIF before, but we thought we’d drill down deeper into the individual metrics.

This metric is especially relevant for more complex workflows with multiple statuses. By monitoring how much time a ticket spends in a given status, you can quickly notice bottlenecks. I encourage all teams to consciously sit and discuss their desirable tech debt ratio. Say that you agree that in your current product state, you aim for a 3–7 tech debt ratio. If your tech debt is 400 sp, and your average velocity is 90, then your tech debt ratio is 4.44, meaning that you need roughly five sprints to pay off the debt. External deadlines, dependencies, and proper resource management require you to have some degree of predictability.

Which Metrics Matter? Interview with Philippe Lambotte

You can improve this perfect order fulfillment metric by implementing better control standards, providing extensive training to your staff, and automating inventory management. USPS announced a general rate increase for shipping services to go into effect on January 22, 2023. Manually tracking metrics is easy when your business is just starting out.

shipping metrics

Using these numbers, the company shipped 78.3% of orders out on-time. In this situation, 0.4% of shipments in this period were out-of-network. Brainyard delivers data-driven insights and expert advice to help businesses discover, interpret and act on emerging opportunities and trends. By placing everything on one centralized platform, all of your supply chain KPIs examples will work in unison to deliver a wealth of insight from one interactive screen. By doing so, you will be able to drill down into every essential component of your supply chain and make valuable decisions in real time. Any process that you can improve logistically will have a positive impact on your company’s financial health.

The 10 Procurement Metrics that Matter in 2021

This could be due to a downtrend in consumer buying behavior, or you may be overstocking. Similarly, a high inventory turnover shows that the demand for your products is high, and you need efficient restocking to prevent stockouts. Gain full visibility into your supply chain operations with Sifted’s Logistics Intelligence solutions. While you should also know how to calculate cost per order, this it the average cost of fulfilling each order.

Sifted’s Logistics Intelligence solution offers tools for shippers and eCommerce businesses to keep track of their important metrics and KPIs to reduce shipping costs. This supply chain performance metric can also illuminate customer satisfaction. For example, if you have a low on-time delivery percentage, it’s doubtful your customers are pleased with the delivery experience.

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