Top 5 Logistics Benchmarks & Metrics for Pickup & Delivery


Inadequate metrics and data analytics would make managing your business operations difficult. In logistics, which includes supply chain and transportation, this statement is particularly accurate. Without quantifiable KPI and benchmarks, managing the process and assessing the effectiveness of your organization would be particularly challenging.

The first crucial step in management is understanding what to measure and how to measure it. The five key metrics in pickup and delivery logistics listed below can be used by any business to assess how well it is performing in relation to its initial objectives.

The proportion of on-time pickups

The number of pickups that were completed on time divided by the total number of shipments during a specific time period is used to calculate the on-time pickup percentage. This is a measurement of freight carrier performance and its effect on your operations and customer service.

The Supply Chain Consortium reports that the average on-time pickup percentage is 96% across a number of segments. More than 40% of businesses achieved their target performance, which falls between 95% and 100%.

On-time pickup percentage provides businesses with additional information, such as which carriers or lanes are problematic or how they affect a product’s sales. Shippers will be able to see how the punctuality of carriers affects delivery schedules.

An accurate measurement of failed pick-up times aids in the early detection of issues, preventing opportunistic behaviors from impairing product delivery.

Perfect shipping measurements

Perfect Order Measurement is another name for this metric. It calculates the percentage of orders that are error-free. The objective is to fine-tune your delivery process by identifying and removing defects gradually until that number is zero, to put it simply. Managers will be able to pinpoint any failure reasons with perfect order measurement.

Adherence to On-Time Deliveries

Also, this metric, also known as Must-Arrive-By-Date (MABD) Adherence, displays the average of on-time deliveries in comparison to the date specified by customers. This metric is especially important for retail vendors because they might be penalized for late deliveries of orders.

This metric can be expanded to show the proportion of items that are delivered on time, the value of those that are, and how early or late they are, among other things, so there are numerous applications for it. Smaller metrics can be measured independently or combined into a single, more comprehensive metric. The efficiency of your supply chain can be improved with the help of on-time delivery adherence, which helps with monitoring and tracking.

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Accurate Freight Bills

By dividing the number of error-free freight bills by the overall number of freight bills during a given period, freight bill accuracy is calculated. Inaccurate pricing, weight calculations, incomplete data, etc. are examples of errors. Usually, this metric is calculated for each carrier individually as well as in total.

With an average billing error rate of 3%, the accuracy rate for freight bills is 97%.

You can spot any problems that might go unnoticed if you measure the charges on freight bills. In order to avoid unauthorized fees and charges and thereby reduce transportation costs, managers can identify problems early on and take action to resolve them. Your ability to make a net profit increase with the accuracy of your freight bills and payments.

The Transit Time to Distance

This metric represents the number of days (or hours) it takes for a shipment to travel from your facility to the customer’s location. For a given distance or lane, transit times can vary significantly depending on the freight mode and carrier systems. Monitoring transit times allows you to maximize capacity, identify potential drivers and carriers attraction factors, and reduces transit times as needed.

You can more easily be precise after benchmarking the typical transit time from your warehouse. For instance, you can specify that an order will arrive in 4-5 business days rather than stating that it will do so in 1-5 business days. The delivery hours can also be used as an example of this. This strategy could help you decrease returns and improve order picking accuracy.

These are the top 5 Pickup & Delivery Logistics metrics that you can use to gauge your operations and take corrective action. Good monitoring results in wise decisions, improved cost control, increased revenue, and increased profitability.

However, you will have to rely on freight carriers to report their own performance unless you are integrated into the systems of your customers.

Fr8app provides an interactive app with detailed reports about delivery key metrics, deliverymen’s performance, traffic map, or distribution heat map – all in one place – in recognition of this common challenge.

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