Must-Know Logistics Kpis [Latest Report]

Highlights: Logistics Kpis

  • 1. Order Accuracy
  • 2. On-Time Delivery
  • 3. Inventory Turnover
  • 4. Carrying Costs
  • 5. Order Cycle Time
  • 6. Perfect Order Rate
  • 7. Freight Cost per Unit
  • 8. Warehousing Costs
  • 9. Transportation Cost
  • 10. Order Picking Accuracy
  • 11. Rate of Return
  • 12. Stock-outs
  • 13. Capacity Utilization
  • 14. Lost Sales
  • 15. Dwell Time
  • 16. Shipment Visibility
  • 17. Dock-to-Stock Time
  • 18. Backorder Rate

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In today’s fast-paced and ever-evolving business environment, staying ahead of the curve is critical to maintaining a competitive advantage. A key factor in achieving this is their ability to efficiently manage their supply chain operations. As companies work diligently to optimize their logistics operations, the use of key performance indicators (KPIs) has become increasingly important to accurately measure and evaluate their success.

In this comprehensive blog post, we will delve into the world of logistics KPIs, discussing their importance, the different metrics that can be used, and how each can contribute to the overall efficiency of your supply chain. By understanding the importance of these KPIs, companies can make informed decisions to improve their logistics operations and ultimately succeed in a competitive marketplace.

Logistics KPIs You Should Know

1. Order Accuracy

Measures the percentage of orders that are delivered accurately, without discrepancies in products, quantities, or destinations.

2. On-Time Delivery

Calculates the percentage of orders delivered within the agreed upon delivery window.

3. Inventory Turnover

Indicates the number of times a company’s inventory is sold and replaced during a given time period.

In today’s fast-paced and ever-evolving business environment, staying ahead of the curve is critical for organizations to maintain a competitive edge.

4. Carrying Costs

Reflects the overall cost of holding and maintaining inventory, including storage, insurance, taxes, and depreciation.

5. Order Cycle Time

Measures the total time taken from placing an order until its delivery, reflecting the efficiency and speed of the order fulfillment process.

6. Perfect Order Rate

Calculates the percentage of orders that meet all critical success factors, such as accuracy, on-time delivery, correct documentation, and undamaged items.

7. Freight Cost per Unit

Determines the average expense of shipping each unit, allowing companies to optimize their freight strategies and costs.

8. Warehousing Costs

Reflects the overall cost of storing goods in a warehouse, including rent, utilities, and labor expenses.

9. Transportation Cost

Measures the total cost associated with moving goods from one location to another, including fuel, driver wages, and vehicle maintenance.

Logistics KPIs are critical in ensuring an efficient and effective supply chain that ultimately leads to improved customer satisfaction.

10. Order Picking Accuracy

Indicates the accuracy of the product pickers in selecting the correct items from the warehouse.

11. Rate of Return

Calculates the percentage of orders that are returned due to issues like damage or incorrect items.

12. Stock-outs

Measures the number of times a requested item is not available in inventory, affecting order fulfillment and potentially leading to lost sales.

13. Capacity Utilization

Reflects the extent to which a company is using its available transportation and warehouse space efficiently, allowing for better cost management.

14. Lost Sales

Tracks the number of missed sales opportunities due to unavailability of products or delivery delays.

15. Dwell Time

Measures the amount of time a vehicle spends waiting at a warehouse or distribution center before loading or unloading, affecting overall efficiency.

16. Shipment Visibility

Monitors the real-time information and tracking of shipments, improving communication and customer service.

17. Dock-to-Stock Time

Indicates the time taken from receiving goods at a warehouse until they’re stocked and available for order fulfillment.

18. Backorder Rate

Measures the number of orders that cannot be immediately fulfilled due to stock-outs or supply chain issues.

Remember, selecting the appropriate KPIs depends on your specific business goals and industry. Track and analyze these KPIs regularly to improve your logistics performance and efficiency.

Logistics KPIs Explained

Logistics KPIs are critical to ensuring an efficient and effective supply chain, which ultimately leads to improved customer satisfaction. They provide valuable insight into order accuracy, on-time delivery, inventory management, and overall costs associated with warehousing and transportation. By tracking these KPIs, companies can optimize their order fulfillment process, minimize lost sales, and better manage their resources.

In addition, monitoring KPIs such as return rates, out-of-stocks, and backorder rates allows companies to quickly identify and resolve potential supply chain issues. By constantly analyzing and addressing these key performance indicators, logistics companies can maintain high levels of efficiency and cost-effectiveness, ensuring a seamless experience for their customers and sustainable growth for the business.


In summary, logistics KPIs play a critical role in the success and growth of any company involved in logistics and supply chain management. Monitoring and optimizing these key performance indicators ensures efficiency, increased competitiveness, and improved decision-making for companies striving to excel in the industry.

By focusing on the most relevant KPIs that are aligned with the company’s strategic goals, supply chain professionals can better address potential bottlenecks, reduce costs, and improve customer satisfaction. Therefore, it is incumbent upon companies to invest time and resources in identifying, tracking, and leveraging logistics KPIs to achieve long-term success and stay ahead of the competition.


What is a Logistics KPI and why are they essential for supply chain management?

A Logistics KPI, or Key Performance Indicator, is a measurable value that demonstrates how effectively a logistics operation is achieving its objectives. They are essential for supply chain management because they help managers identify areas for improvement, enhance decision-making, monitor performance, and ensure efficient resource allocation.

What are some common Logistics KPIs used in the industry?

Some common Logistics KPIs include on-time delivery rate, order accuracy, warehouse capacity utilization, transportation costs, and inventory turnover. These KPIs enable organizations to assess and optimize various aspects of their logistics operations, such as shipping, warehousing, and inventory management.

How can companies set targets for their Logistics KPIs?

Companies can set targets for their Logistics KPIs by conducting a thorough analysis of their current operations, industry benchmarks, and best practices. They should consider factors such as their business objectives, historical performance data, and market trends when setting these targets. It is crucial to establish reasonable and achievable goals that can be evaluated periodically for continuous improvement.

How can technology assist in tracking and improving Logistics KPIs?

Technology, such as supply chain management software, IoT devices, and data analytics tools, can play a crucial role in tracking and improving Logistics KPIs. These systems allow for real-time monitoring, data collection, and analysis of various logistics processes. They can help identify trends, inefficiencies, and bottlenecks while facilitating informed decision-making, improving coordination among departments, and allowing for better resource planning and management.

Can Logistics KPIs help in reducing costs and improving customer satisfaction?

Yes, Logistics KPIs can significantly contribute to cost reduction and improved customer satisfaction. By monitoring KPIs, companies can identify inefficiencies, optimize their operations, and reduce costs associated with inventory management, warehousing, and transportation. Moreover, by ensuring on-time and accurate delivery of products, these KPIs can result in a better overall customer experience, leading to increased satisfaction, positive reviews, and potential repeat business.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

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