Must-Know Shipping KPIs [Latest Report]

Highlights: Shipping Kpis

  • 1. On-Time Delivery Rate
  • 2. Order Accuracy Rate
  • 3. Order Cycle Time
  • 4. Transit Time
  • 5. Order Fill Rate
  • 6. Shipping Cost per Unit
  • 7. Damage Rate
  • 8. Return Rate
  • 10. Carrier Performance Metrics
  • 12. Shipping Time in Full (SITF)
  • 13. Inventory Turnover Rate
  • 14. Stock-outs

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In today’s competitive business landscape, shipping plays a pivotal role in securing customer satisfaction and maintaining supply chain efficiency. As businesses across the globe continue to adopt e-commerce and digital commerce models, the importance of a streamlined, effective shipping strategy grows exponentially. To navigate this constantly evolving landscape, companies must have key performance indicators (KPIs) in place to measure and optimize their shipping operations.

In this insightful blog post, we will delve into the vital Shipping KPIs that businesses need to keep a close eye on, unpacking their significance and shedding light on how they can be harnessed to drive strategic success and enhance overall operational performance.

Shipping KPIs You Should Know

1. On-Time Delivery Rate

The percentage of orders delivered within the promised or expected delivery date. This is crucial for customer satisfaction and ensuring repeat business.

2. Order Accuracy Rate

The percentage of orders that are shipped accurately, without any errors such as incorrect items, quantities, or wrong addresses. High order accuracy helps maintain customer trust.

Transit Time helps track the efficiency of shipping partners and carriers.

3. Order Cycle Time

The average time it takes to complete an order from receipt to delivery. Shorter cycle times indicate efficient shipping processes and contribute to customer satisfaction.

4. Transit Time

The average time it takes for a shipment to reach the customer after leaving the warehouse. This KPI helps track the efficiency of shipping partners and carriers.

5. Order Fill Rate

The percentage of items shipped compared to the total number of items ordered. A high fill rate ensures customers receive their complete orders, minimizing backorders and out-of-stock situations.

6. Shipping Cost per Unit

The average cost to ship one unit of product. This KPI helps identify areas for cost optimization in the shipping process.

7. Damage Rate

The percentage of shipments that arrive damaged due to handling or transportation. A low damage rate shows care in packing and handling, as well as effective collaboration with carriers.

A low damage rate shows care in packing and handling, as well as effective collaboration with carriers.

8. Return Rate

The percentage of shipped products that are returned by customers, either due to defects, incorrect items, or dissatisfaction. Minimizing returns is important to maintain customer satisfaction and lower reverse logistics costs.

9. Freight Cost as a Percentage of Sales

A ratio comparing total freight costs to total sales revenue. Monitoring this KPI helps keep shipping costs in check.

10. Carrier Performance Metrics

An evaluation of carriers using metrics such as on-time delivery, damages, and claims. Regularly evaluating carriers helps identify the best partners and facilitates better negotiation on freight rates.

11. Average Warehouse Capacity Utilization

The percentage of warehouse space used for storing inventory. Efficient utilization of warehouse space can reduce the need for additional storage and related costs.

12. Shipping Time in Full (SITF)

The percentage of consignments shipped within the agreed-upon lead time. A higher SITF indicates a more reliable and efficient shipping operation.

13. Inventory Turnover Rate

The number of times a company’s inventory is sold and replaced over a period of time. A higher turnover rate corresponds to better inventory management and can lead to lower holding costs.

14. Stock-outs

The number of times a product is out of stock and unavailable for shipping. Minimizing stock-outs ensures a better customer experience and increased sales.

Shipping KPIs Explained

Shipping Key Performance Indicators (KPIs) are critical metrics that help businesses monitor and improve the efficiency and effectiveness of their logistics and fulfillment processes. On-Time Delivery Rate is vital for maintaining customer satisfaction and securing repeat business, while Order Accuracy Rate helps build trust with consumers. Order Cycle Time, Transit Time, and Shipping Time in Full all contribute to an efficient shipping process, leading to happier customers.

Order Fill Rate, Damage Rate, and Return Rate are important indicators of successful order fulfillment, while Shipping Cost per Unit, Freight Cost as a Percentage of Sales, and Average Warehouse Capacity Utilization help identify cost-saving opportunities.

Carrier Performance Metrics facilitate better collaboration and negotiation with shipping partners, while Inventory Turnover Rate and Stock-outs indicate how well a company is managing its inventory. By closely tracking and evaluating these KPIs, businesses can optimize their shipping operations, provide better customer experiences, and ultimately increase their bottom line.


In summary, Shipping KPIs are crucial in driving growth, efficiency, and sustainability for businesses in the shipping and logistics industry. They empower companies to monitor performance, identify strengths and weaknesses, and make data-driven decisions that lead to better cost management and customer satisfaction.

To fully optimize your shipping operations, it is essential to carefully select and consistently evaluate the most relevant KPIs for your business. By embracing a culture of continuous improvement and utilizing technology-driven analytics tools, organizations can ensure they stay ahead in the ever-evolving shipping landscape and ultimately achieve a competitive edge in the market.


What are Shipping KPIs and why are they important?

Shipping Key Performance Indicators (KPIs) are quantifiable metrics that help businesses track and measure the efficiency, effectiveness, and overall performance of their shipping operations. They are essential for optimizing costs, identifying areas for improvement, and ensuring customer satisfaction with shipping and delivery times.

What are some examples of Shipping KPIs?

Common Shipping KPIs include On-Time Delivery Rate, Order Accuracy, Shipping Cost per Order, Average Time to Ship, and Carrier Performance. These KPIs allow businesses to evaluate the reliability of their shipping process, the cost-effectiveness of their shipping methods, and the overall efficiency of their shipping operation.

How can tracking Shipping KPIs improve operational effectiveness?

Tracking Shipping KPIs helps businesses to identify inefficiencies, bottlenecks, and weak points in their shipping process. This, in turn, allows companies to create targeted strategies and improvements, ultimately resulting in more efficient operations and better customer satisfaction with shipping services.

How often should Shipping KPIs be reviewed and analyzed?

It is advisable to review and analyze Shipping KPIs regularly to ensure that any changes to processes, policies, or carrier relationships are positively impacting overall shipping performance. The frequency of review depends on the size and complexity of the business and shipping operations but can be weekly, monthly, or quarterly as deemed suitable by the organization.

What steps can a company take to improve its Shipping KPIs?

To improve Shipping KPIs, companies can focus on optimizing operations and logistics, investing in technology, using data analytics to make informed decisions on routing, picking and fulfilling orders, and working closely with carriers to ensure smooth communication and collaboration. Furthermore, constant monitoring, analysis, and adaptation of the shipping strategy will lead to improved KPIs and overall shipping performance.

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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