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The Essential
Logistics KPIs &
Metrics You Need to
Track
Abby Jenkins | Product Marketing
Manager
August 10, 2022

Learn everything you need to know about

key performance indicators (KPIs) in logistics.
This article provides a list of essential KPIs by
category, with formulas and example
calculations. The step-by-step guide will help
you build scorecards and dashboards so your
business can realize the value of KPIs.

In this article:

Logistics KPIs by category

Do's and don'ts of creating logistics KPIs
Logistics dashboards
Logistics metrics scorecards

What Is Logistics?
Logistics is the process of procuring and
bringing in goods, services and information.
Logistics covers everything from purchasing
to warehousing to fulfillment to
transportation and delivery, and how
resources are managed at each of those
stages. Those resources may include people,
raw materials, products and equipment a
business counts on to keep its operations
running smoothly. Learn how to streamline
your logistics by reading this logistics primer.

Stages to Measure
Logistic stages divide the procedures within
this business funciton into sections and can
help you optimize operations. For example,
you can measure KPIs tied to order
management, supply, inventory, distribution
and transport management to find ways to
improve performance.

What Is Logistics
Management?
Logistics management controls the
procurement, movement and storage of
goods. The process starts at the product's
origin and ends with the consumer. Logistic
management also includes order fulfillment
and integrates with other business functions.

Why Are Logistics KPIs

and Metrics Important?
Logistics KPIs are a way for businesses to
compare their own performance against
industry benchmarks. By tracking KPIs,
businesses have important data that enables
them to improve operations. This data shows
the mistakes and how to address them,
reducing costs.

For example, one useful KPI in the warehouse

is on-time shipping. This metric shows the
percentage of shipments that departed the
warehouse on-time. All shipments are on
tight timelines, and late shipments can
damage the customer experience and
potentially cost businesses money. If on-time
shipping is below the benchmark, that points
to problems in the warehouse. Measuring on-
time shipping is one step in understanding
customer satisfaction.

How to Set Up Logistics KPIs

Set up KPIs for logistics by first defining your
company's logistics goals. Ensure that the
plans are SMART: specific, measurable,
achievable, relevant and timely. Determine
goals for both leading and lagging indicators.

Use the goals to identify the information you

need from the KPIs. These answers help you
adjust business processes and identify
opportunities for improvement. For logistics,
start with KPIs that answer the following
questions:

What is the percentage of promised

deadlines missed?
How many orders arrived damaged, by
month?
How often did customers receive the
wrong order?
How do out-of-stock items affect
customer wait times?
Is our shipping department maximizing
its capacity?

Decide on a few key metrics that address

these issues and make sense for your
business model. New businesses should
focus on facilitating a unique customer
experience and getting feedback from
buyers. 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.

What Are the KPIs in

Logistics?
Businesses use logistics KPIs to identify
stages in the flow of goods that need
improvement. The relative importance of
logistics KPIs vary by industry. Determine
your business's standing in its sector and
choose KPIs that are representative of it.

Break KPIs out by their stage within the

supply chain. Pick a few KPIs in each stage
that target your company’s position in the
industry and potential for improvement. For
example, the graphic below highlights some
best-practice metrics for each stage in the
logistics chain.

KPIsforEachStageofLogistics
LogisticsKPIs

•ShippingTime
•OrderAccuracy
Order •PerfectOrder
Management •NumberofShipments
•NumberofShipments

•LeadTime
Supply •CapacityUtilization
•Productivity

•CustomerBackorderRate
•InventoryAccuracy
Inventory •InventoryTurnover
•InventorytoSalesRatio

•TrailerUtilizationRate
Distribution •WarehousingCosts
•AverageDwellTime

•DeliveryTime
•AverageDaysLate
Transport •TruckTurning
Management •FreightPaymentAccuracy
•TransportationCosts

This graphic shows each of the five stages for logistics for key
performance indicators (KPI).

List of KPI Logistics

When organizing your logistics KPIs by stage,
the stages may overlap a bit, but their
activities and KPIs do not. The logistics
metrics below are distinctive and reveal how
well the business is functioning in each area.

Order Management KPIs

Order management KPIs focus on orders and
returns processing, which are crucial for
reverse logistics. These metrics start when
customers place an order.

Shipping Time: Shipping time is the

length of time it takes for companies to
ship an order on or before the requested
date. This metric is vital to customer
satisfaction. Organizations often couple
it with the on-time shipping KPI.
Order Accuracy: Order accuracy is the
measure of inventory on-hand and
order pick accuracy. Without high order
accuracy, companies can suffer from
slowdowns in production or sales,
costing time and money.
Perfect Order: Perfect order, also
known as perfect customer order rate, is
a KPI that measures how many orders
ship without issues (damage, delays or
inaccuracies). This metric is another KPI
that targets customer satisfaction.
On-Time In-Full: On-time in-full
represents how many shipments are
delivered according to the quantity and
schedule specified when they were
ordered. This is typically regarded as a
customer-centric metric since it
measures how often a customer gets
what they ordered at the time it was
promsed.
Number of Shipments: The number of
shipments is how many loads your
company sent out in a given period.
Looking at the averages of this KPI helps
companies optimize their resources and
hit their financial goals.

Supply KPIs
Supply KPIs are metrics that focus on how
well final goods are moving through the
supply chain. Use these measurements to
help improve the efficiency of your
operations and grow your business. They are
also useful for developing acceptable
practices and relationships with other supply
chain partners. Learn more about supply
chain management.

Lead Time: Lead time, also known as

order cycle time, is a measure of the
time between when a customer places
an order and when they receive it. This
metric is vital for identifying possible
bottlenecks.
Capacity Utilization: Capacity
utilization is how much of a resource a
company is using. This resource can be
the production of goods or professional
services. This metric is essential for
maintenance management and
resource tracking.
Productivity: Productivity is a measure
of how well a company’s machines,
departments and/or people are running.
Measuring and understanding
productivity helps businesses ensure
they can deliver on their promises.

Inventory KPIs
Inventory KPIs can help measure the
effectiveness of inventory purchasing and
production processes, and may also focus on
cash flow and productivity. Read the guide to
inventory KPIs and metrics to learn more.

Customer Backorder Rate: Customer

backorder rate is how often a company
cannot fulfill an order. This metric
directly contributes to customer
satisfaction.
Inventory Accuracy: Inventory
accuracy measures how closely your
inventory records reflect what is actually
in storage. This metric is vital for
knowing what your company has in
stock and forecasting inventory
purchases.
Inventory Turnover: Inventory
turnover, also known as stock rotation, is
the measure of how many times in a
period a company sells all its stock of a
certain product. Inventory turnover is
important to retail success and keeping
the company competitive. For more on
inventory turnover, read the inventory
turnover primer.
Inventory to Sales Ratio: The
inventory to sales ratio measures the
amount of inventory in stock versus the
number of fulfilled sales. As inventory is
often a company’s biggest expense,
businesses that can keep their inventory
expenses low relative to their sales save
money overall.

Distribution KPIs
Distribution KPIs focus on the system that
manages product flow—moving a product to
customers directly or from from distributors.

Trailer Utilization Rate: Trailer

utilization rate measures how well
companies are loading their trailers. This
rate reflects a company’s load planning
and whether it is minimizing costs there
as much as possible.
Warehousing Costs: Warehousing
costs are a group of metrics that cover
the expenses specific to your
warehouse. These can include any
equipment, energy, labor, delivery and
shipping costs that get goods into and
out of the warehouse. Use this KPI to
measure how efficient your warehouse
operations are. Read the warehouse
management system (WMS) guide to
learn how it can improve costs.
Average Dwell Time: Average dwell
time, also known as wait time, is the
length of time a carrier sits before
processing for pickup and delivery. This
metric indicates how well a facility
functions. Shippers with low average
dwell times will struggle to attract drivers
and pay more in securing services.

Transport Management KPIs

Transport management KPIs govern the
trucking of goods and can help improve
operations. These metrics differ based on
what entity needs the information. Because
they affect the economy, federal agencies
may also request these numbers.

Delivery Time: Delivery time, also

called on-time delivery, measures how
quickly an order arrives in full. The time
is for the entire order, not just parts. This
metric impacts customer satisfaction
and loyalty.
Average Days Late: Average days late
is the number of days between the
delivery's due date and when the
customer receives the order. This metric
provides insight into the delivery
process and also directly impacts
customer satisfaction and loyalty.
Truck Turning: Truck turning, also
known as truck turnaround rate, is the
time between when a delivery truck
enters a facility to collect or deliver
goods and when it exits. The smaller the
truck turning rates, the more time the
truck is on the road. This rate shows how
well a company handles loading and
unloading.
Freight Payment Accuracy: Freight
payment accuracy, also called freight bill
accuracy, is the number of error-free
freight bills compared to the total
number of freight bills in a period.
Freight bills are quite error-prone, yet
data errors are incredibly costly.
Transportation Costs: Transportation
costs are the group of metrics that track
an order’s price from beginning to end.
This metric includes order processing,
administration, inventory carrying
costs, warehousing and transportation
costs. Use these costs to see if your
transit operations are efficient. See the
transportation logistics guide and
transportation logistic trends article to
learn more.

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18 Essential Logistics
KPIs and Metrics
These 18 logistics metrics can help your
business manage costs and improve
customer satisfaction. These costs relate to
shipping, distribution, transportation,
warehousing and logistics performance. Use
these KPIs to identify problems and optimize
your processes.

Formulas for Transportation KPIs

Average Cost per Skid or Order: The
average cost per skid or order is a
combination of all the hidden and more
obvious costs. The metric compares the
number of skids or orders to the total
cost of the shipment or effort. This
measurement can help to identify skids
or orders whose costs are unusually
high.

Average Cost per Order Example:

Bob's Hardware has the following costs
for a new product:
Marketing campaign: $500
COGS: $1,200
Packaging: $50
Shipping costs: $200
Storage costs: $100
Number of orders: 300

Average cost per order =

(total in costs) / (total number
of orders)
Average cost per order =
($500 + $1,200 + $50 + $200 +
$100) / (300)
Average cost per order =
$6.83

In Bob’s Hardware scenario, the average

cost per order is $6.83.

Average Transportation Cost: The

average transportation cost is the
average cost of transportation expenses
compared to gross monthly income.
This measures the distribution of the
expenses from order placement to
delivery. This includes actual transit
costs and those for order processing,
which is a small percentage of
administration, inventory carrying and
warehousing.

Average Transport Cost Example: A

company has an $800 average monthly
transportation cost and $10,000
monthly gross income

Average transport cost =

Average transport cost /
(monthly gross income) × 100
Average transport cost =
($800 / $10,000) × 100
Average transport cost = 8%

This company spends about 8% of its

monthly income on transportation.

Freight Cost per Unit Shipped: Freight

cost per unit shipped is the total freight
costs divided by the number of units
shipped in the period. The
measurement considers things like
cargo mix and making sure the
container is not underloaded.
Companies want full container loads.

Freight Cost per Unit Shipped

Example: $4,200 for 6,000 units

Freight cost per unit shipped

= (Cost of freight) / (# units)
Freight cost per unit shipped
= $4,200 / 6,000 units
Freight cost per unit shipped
= $0.70 per unit

In this example, the freight was $.70 per

unit in shipping.

Formulas for Supply KPIs

Transit Time to Distance: The transit
time to distance compares the distance
a shipment travels to the time it takes it
to go from pickup to destination.

Transit Time to Distance Example: 5

days, 2,000 miles

Transit time to distance =

(time to go from pickup to
destination) / (# miles)
Transit time to distance = 5
days / 2,000 miles
Transit time to distance =
0.0025 days/miles

In this example, the travel time to

distance is 0.0025 days per mile.

Stock Rotation: Stock rotation, also

known as inventory turnover, is the
number of times a company sells its
inventory in a period. This metric helps
companies monitor aging stock.

Stock Rotation Example: Happy

Company has $10,000 in sales and
$5,000 in average inventory.

Stock rotation = Sales /

Average inventory
Stock rotation = $10,000 /
$5,000
Stock rotation = 20

In this scenario, Happy Company sells

through its stock 20 times in this period.

Out-of-Network Shipment: Out-of-

network shipments are the unusual
shipments ordered due to stock
depletion. These shipments can be
expensive. The ratio of out-of-network
shipments compares them to total
shipments.
 Out of Network Shipment Example:
There are 20 out-of-network shipments
out of the 5,450 shipments in this
period.

Out-of-network shipments =
(total out-of-network
shipments) / (total shipments)
× 100
Out-of-network shipments =
20 / 5,450 × 100
Out-of-network shipments =
0.4%

In this situation, 0.4% of shipments in

this period were out-of-network.

Examples of Distribution KPIs

On-Time Final Delivery: On-time final
delivery, also known as on-time delivery
(OTD), is the ratio of products delivered
on-time to customers compared to the
total number of shipped products. The
KPI measures supply chain efficiency
and performance in delivery operations.
The units shipped on-time is for the
whole order, not broken down by piece.

On-Time Final Delivery Example: Of

the 18 orders delivered this week, 15
were delivered in full, two partial
deliveries and one order pending.

OTD = (Units delivered on-

time) / (Total units) × 100
OTD = 15 / 18 × 100
OTD = 83%

In this scenario, the company delivered

83% of products on-time. The goal of
OTD is always 100%.

On-Time Pickup: On-time pickup is the

number of pickups the freight carrier
made on-time compared to the period's
total shipments. This metric shows
carrier performance, which boosts
customer satisfaction and shipping
efficiency. Experts recommend relying
on documentation transit time, not on
the carrier's data.

On-Time Pickup Example: This

month, Happy Carriers picked up 43
shipments on time out of a total of 46
shipments.

On-time pickup = (#
shipments picked-up) / (Total
# shipments) × 100
On-time pickup = 43 / 46 ×
100
On-time pickup = 93.5%

In this example, the on-time pickup

performance was 93.5%. Experts
consider anything above 90%
acceptable.

On-Time Shipping: On-time shipping

is how close the carrier came to shipping
out the order when promised. Measure
the number of units shipped out on time
compared to the number of units
shipped during that period. Orders must
be in-full to count toward this metric.

On-Time Shipping Example: Of the 23

orders shipped out on-time, 18 were in-
full and on-time, three were partial
orders shipped on-time and two were
behind what the company promised.

On-time shipping = (# orders

shipped on-time) / (Total #
orders shipped) × 100
On-time shipping = 18 / 23 ×
100
On-time shipping = 78.3%

Using these numbers, the company

shipped 78.3% of orders out on-time.
The goal is always 100%.

Formulas for Warehouse and Order

Management KPIs
Unplanned Shipment: The unplanned
shipment, also known as the unplanned
supply order lines, are the number of
supply order lines not being shipped
soon. The company has no plans to ship
these products. This metric is the
number of unplanned shipments
compared to the total number of
shipments.

Unplanned Shipment Example: Four

unplanned shipments this month; 4,000
shipments completed this month

Unplanned shipment =
(number of unplanned
shipments) / (number of total
shipments) × 100
Unplanned shipment = 4 /
4,000 × 100
Unplanned shipment = 0.1%

In this example, this company has 0.1%

of its shipments in unplanned shipment
status.

Order Accuracy: Order accuracy, also

known as order picking accuracy, is the
number of orders picked and verified as
accurate compared to the total number
of orders picked for a period. This metric
helps with process improvement in the
warehouse.

Order Accuracy Example: Quality

control verified 123 orders correct from
the 128 picked today.

Order accuracy = (# order

verified correct) / (# orders
picked today) × 100
Order accuracy = 123 / 128 ×
100
Order accuracy = 96%

In this scenario, quality control staff

verified that 96% of today's picks as
accurate. Since this metric affects
customer satisfaction, companies
should work to make it as high as
possible.

Inventory Accuracy: The inventory

accuracy KPI is the accuracy of inventory
in stock compared to what the database
shows are in stock. This metrics shows
the effectiveness of your bookkeeping
methods and ensures there are no
stockouts.

Inventory Accuracy Example: There

are 3,458 items counted in stock; the
system lists 3,506 items.

Inventory accuracy = (# items

counted) / (# items system
lists as present) × 100
Inventory accuracy = 3,458 /
3,506 × 100
Inventory accuracy = 98.6%

This example shows that 98.6% of items

are accurately in-stock. The metric does
not differentiate between entities, just
the number of overall items.

Dock-to-Stock: Dock-to-stock cycle

time is how long it takes for a product to
go from the start of its receipt to when it
is put away and ready for sale compared
to the total number of shipments
received. Staff usually count this in
hours.

Dock-to-Stock Example: 12 hours and

18 shipments

Dock to stock = (# hours for

received product to be put
away) / (# shipments)
Dock to stock = (12 hours / 18
shipments)
Dock to stock = 0.67 hours
per shipment

The equation shows that the dock-to-

stock cycle time for this company is 0.67
hours per shipment.

Units Processed per Square Foot:

Units processed per square foot, also
known as productivity in transferred
volume, are distribution metrics that
compare the number of units or goods
processed to usable warehouse space.

Units Processed per Square Foot

Example: 60,000 units and 16,400
square feet of usable area.

Units processed per square

foot = (# units processed) /
(useable space)
Units processed per square
foot = 60,000 units / 16,400
square feet
Units processed per square
foot = 3.7 units/ft2

In this situation, there are 3.7 units/ft2,

taking up a fair amount of usable
warehouse space.

Space Use in Warehouse: Space use in

warehouse, also known as space
utilization, is the percent of bins used.
This metric ensures optimal use of
warehouse space. Calculate this metric
by comparing the amount of warehouse
space used by what is available.

Space Use in Warehouse Example:

3,300 feet square used in a 16,500-foot
square warehouse

Space used in warehouse =

(warehouse space with
product) / (total warehouse
space) × 100
Space used in warehouse =
3,300 ft2 / 16,500 ft2 × 100
Space used in warehouse =
20%

In this example, 20% of the warehouse

space is filled with product, which is
average for warehouses.

Formulas for Logistics Performance

Metrics
Cost per Pound: Cost per pound is the
cost of a shipment compared to its
weight in pounds. Use this measure to
compare carriers, weekly invoices and
individual shipments.

Cost per Pound Example: $836.24 for

a shipment of 2,200 lbs.

Cost per pound = (Cost of

shipment) / (Weight of
shipment)
Cost per pound = $836.24 /
2,200
Cost per pound = $0.38

In this situation, the cost per pound is

$0.38. This result is typical; the most
frequent ranges are $0.22–$0.42. A per-
pound fee anywhere between $0.06 and
$0.75 is not unusual.

Cost per Mile: Cost per mile calculates

the profit distribution for a load.
Marketing also uses this metric for
campaigns. However, in distribution, the
measurement is the total monthly
expenses or total load cost compared to
the number of miles driven. The prices
are fixed and variable.

Cost per Mile Example: $2,540

variable costs, $2,312 fixed costs and
3,600 monthly miles

Cost per mile = (Total fixed

and variable costs) / (Monthly
miles)
Cost per mile = ($2,540 +
$2,312) / (3,600 miles)
Cost per mile = $1.34 per mile

In this example, if the mileage stays at

3,600 miles per month, spending $1.34
per mile will meet expenses.

Number of Shipments: The number of

shipments is a straightforward metric
representing the monthly count of how
many shipments a company sends.
Companies can break this down by
region, country or product type. The
totals will show the seasonal fluctuations
and help companies prepare and
allocate resources over the year.

Number of Shipments Example: 200

shipments added up for the month.
Monthly shipment, by region:
Eastern region: 120
Western region: 40
Southern region: 40

Monthly shipment, by product type:

Information widgets: 12,040
Control widgets: 2,440
Hybrid widgets: 1,832
Collection widgets: 10,030

In this scenario, we broke down the

loads by region and product. For
example, 120 shipments of four different
products, totaling 26,342 items, went to
the eastern region last month.

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KPI Do's and Don'ts

Choose KPIs based on goals and objectives.
Start with what executive leadership is
looking for and map out priorities from the
broad to the granular level.

Apply metrics to each priority. Then, go back

and reprioritize what to measure and remove
extraneous measures. Ten to 20 KPIs are an
ideal number for an entire company.

More do's and don'ts for choosing

KPIs and measuring them include:

KPI Do's
Prioritize processes and operations.
Make your KPIs relevant.
Choose simple, attainable KPIs. Simple
measures lead to targeted fixes.
Consider the performance elements of
your chosen metrics.
Focus on the activities that help staff
perform better.

KPI Don'ts
Do not make up new standards. Learn
about your industry KPIs and focus on
them first.
Do not develop measures without
getting buy-in from staff.
Do not make your KPIs intangible.
Regularly review them and make
adjustments.
Do not make your KPIs static. Raise the
benchmarks once you meet or exceed
them.
Do not shoot for merely meeting
minimums for all KPIs. Instead, strive to
reach the minimum acceptable
performance levels.

Logistics Metrics
Scorecards
A logistics metrics scorecard is a report that
shows metrics by category. Then, the
scorecard rates each prospective company's
numbers against a benchmark. Each
company should fix any failures on the
scorecard before the next review.

Examples of Logistics Scorecards

Scorecards are a proxy for performance.
Logistics scorecards that compare
prospective companies are good examples to
follow. They compare organizations to each
other and industry standards.

Choose metrics and displays that target what

your company needs in partners. For
example, a scorecard could include receiving,
storage, shipping, putaway, and pick and
pack. Each category is a scorecard itself, and
set the industry benchmark as the standard.
Then show how close the company comes to
that standard with a percentage. For these
categories, the specific KPIs are:

Receiving Scorecard
Cost of Receiving
Productivity of Receiving Labor
Efficiency of Receiving
Receiving Accuracy
Dock Utilization
Receiving Cycle Time

Shipping Scorecard
Shipping cost per line
Dock Utilization
Shipping Accuracy
Back Order Rate
Rate Orders Received Damage-Free
Average Time to Customer

Pick & Pack Scorecard

Cost of Pick & Pack
Picking Productivity
Packing Material Use Rate
Equipment Dock Utilization
Picking Accuracy Rate
Returns Rate
Returns Cost
Pick & Pack Cycle Time

Putaway Scorecard
Cost per Line
Staff Productivity
Space Utilization
Putaway Accuracy
Putaway Cycle Time

Other scorecard examples focus on areas like

safety and customer service.

Safety Scorecard
Costs of Safety Prevention
Cost of Poor Safety Measures
Lost Time to Injuries
Number of Safety Trainings per Period

Customer Service Scorecard

First Response Time
Customer Retention Rate
Customer Satisfaction Score
First Contact Resolution
Average Resolution Time
Cost per Conversation
Net Promoter Score (NPS)

Logistics Dashboards
A logistics dashboard offers a comprehensive
view of a company's metrics. For efficiency,
organize the dashboard by topic, division or
workgroup. Another way to manage
dashboards is by whether they are
operational, strategic or analytical.

Logistics Dashboard Examples

A well-organized and cohesive logistics
dashboard uses visuals that are clean and
enable your staff to find what they need
quickly. They should also be able to see
progress and goals for various metrics.

Dashboards often have more than just KPIs

on them. They also feature links to navigate
to outstanding worklists, reminders and line
lists. They should have everything the staff
needs to help conduct their work.

For example, the following warehouse

management dashboard organizes the KPIs,
tracks progress and includes the information
that leads to those KPIs. It’s well-organized
and visually cohesive.

Warehouse Management Dashboard

This graphic shows Warehouse Management Dashboard that

shows all of the company’s metrics.

The business intelligence analytical

dashboard below is another good example.
The design presents the most critical
information front and center, in bold colors.
The metrics are all related.
Analytical Dashboard

This analytical dashboard image shows KPIs and monthly

performance metrics.

The following strategic finance dashboard

also has cohesive metrics, colors and themes.
Users can find detailed information as well as
high-level indicators that executives can pull
out quickly.

Strategic Finance Dashboard

This image of a strategic financial dashboard shows subsidiaries’

performance and KPIs like payables and expenses.

This dashboard shows its KPIs and makes a

point to highlight progress over the period. Chat
A
simple view places the most important links,
reminders and metrics front and center.

Overall Company Metrics Dashboard

This graphic shows a comprehensive metrics dashboard for the

company.

8 Simple Steps for Developing Your

Own Logistics Scorecard or Dashboard
The steps for creating scorecards and
dashboards start with a deep understanding
of your company's priorities. Dashboards
record what a business is doing, while
scorecards illustrate how well a business is
doing. Follow these steps to create your own:

1. Understand Company Priorities

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.
2. Identify the Necessary Measures
All short-term goals should have
appropriate, targeted metrics. You may
need to rework your initial choices. They
may end up being too complicated or
not within reach. Focus on the
outcomes.
3. Organize the Metrics
Stick to a theme. For example, if the
business unit is outward-facing, provide
insight into customer service
improvements. If this is a goal, organize
customer service KPIs together into a
scorecard and any dashboards.
4. Make the Periods and Increments
Consistent
You can look at different periods, such
as monthly or yearly. Whichever you
choose, make the period consistent
across all metrics. Also, ensure the
increments in the measurements are
constant. When people look at metrics,
they want apples-to-apples
comparisons.
5. Identify the Data Source and
Benchmark Source
Ensure you point out staff responsible
for each metric and set clear schedules
for updates. On scorecards, show where
the benchmarks originate.
6. Consider Cumulative Metrics
If you are tracking KPIs monthly,
consider including graphs or roll-up
columns for year-to-date to show staff
and customers your progress.
7. Show the Visuals
Visuals show the big picture. The best
visuals give you the highlights at a
glance—staff should not have to work
hard to understand their data.
8. Develop the Dashboards from the
Scorecards
There is no reason to reinvent the wheel.
If your scorecards are electronic, link to
or use pieces from them to develop your
dashboards. Add in additional
requirements such as reminders and
links when necessary. Use steps 1 to 7
above to build powerful dashboards.

Measure, Visualize, and

Track Logistics KPIs with
NetSuite Software
Companies can measure, track and visualize
logistics KPIs with software. The right systems
also give you the flexibility to develop and
update your KPIs. Develop your metrics into
cohesive and helpful scorecards and
dashboards so you can pinpoint areas for
improvement at-a-glance.

NetSuite’s cloud ERP software provides all the

necessary tools to capture, analyze and
display logistics metrics throughout the
organization with role-based and industry-
specific dashboards and prepopulated KPIs.
NetSuite offers software for transportation
and logistics companies as well as outbound
logistics functionality that provides
simplified pick, pack and ship, cross-
subsidiary fulfillment and carrier integration.
Its inbound logistics functionality allows
businesses to track KPIs easily with purchase
order receiving workflows, automatic quality
assurance processes and container tracking
through inbound shipping management
features.

To stay competitive today, businesses need to

measure various logistics-related KPIs so they
know what needs to be improved. This ability
to identify and resolve specific issues that are
leading to unecessary expenses or impairing
the customer experience will put companies
in a position to succeed, regardless of the
specific market they serve.

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the entire customer lifecycle, so there’s
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