In today’s logistics industry, where competition is global, time margins are getting tighter and customers demand full visibility of their operations, working with only insights or estimates is no longer sufficient.
Companies need objective data that allows them to measure, compare and improve the performance of their supply chain. This is where logistics KPIs come into play.
A KPI (Key Performance Indicator) is a key performance indicator that makes it possible to quantitatively assess whether a logistics operation is meeting its objectives. These indicators not only reflect current performance, but also help to anticipate problems and design continuous improvement plans.
In logistics, KPIs become a strategic tool because they cover all critical areas: from on-time deliveries to cost per unit shipped, from inventory accuracy to customer satisfaction.
In other words, they enable the transformation of dispersed data into informed decisions that improve efficiency, reduce costs and raise the quality of service.
In this article, we will analyze what logistics KPIs are, which ones are most relevant to international logistics, how to define and interpret them correctly, and what mistakes to avoid when working with them.
What are logistics KPIs and why are they key in supply chain management?
Logistics KPIs (Key Performance Indicators) are key performance indicators that allow quantitative and objective measurement of the efficiency of the processes that make up the supply chain.
These metrics are designed to evaluate critical aspects such as on-time delivery, inventory optimization, cost per operation or quality of customer service.
A KPI is not just an isolated piece of data: it must be aligned with the company’s strategic objectives. For example, if a company seeks to differentiate itself by the speed of its deliveries, the most relevant KPI will be the order cycle time or the on-time delivery rate. On the other hand, if the focus is on cost efficiency, KPIs related to logistics cost per unit will be more relevant.
The importance of KPIs in logistics lies in the fact that they turn a complex process, with multiple actors and variables, into a measurable, comparable and improvable system. Without them, decisions are made based on perceptions or intuitions, while with them we work on real and verifiable data.
In a globalized environment where customers are increasingly demanding traceability, transparency and efficiency, KPIs have become the reference tool for modern logistics management. They enable companies:
📊 Measure the real productivity and efficiency of each link in the chain.
🚚 Control costs and times in transport operations, storage and distribution.
🔍 Identify deviations and bottlenecks, facilitating the implementation of corrective actions.
📈 Compare performance against industry benchmarks, ensuring competitiveness.
🛡️ Reduce operational risks by anticipating supply chain incidents.
In short, logistics KPIs are the common language between operations and strategy, a bridge that translates daily activities into concrete indicators that enable rigorous management and decision-making that directly impact profitability and customer satisfaction.
Benefits of working with KPIs in international logistics
The implementation of logistics KPIs in an international operation not only provides visibility into performance, but also becomes a continuous improvement mechanism that impacts the entire supply chain.
In a global environment involving multiple stakeholders (carriers, customs, warehouse operators, distributors), clear and consistent indicators are essential to ensure efficiency and transparency.
Continuous improvement based on real data
KPIs make it possible to compare current performance with defined objectives. In this way, companies can:
📊 Detect deviations quickly.
⚙️ Implement corrective actions and measure their impact.
🔄 Establish continuous improvement cycles that ensure constant evolution in operations.
Increased control over time, costs and service levels
Through KPIs, logistics managers gain a clear view on the balance between efficiency and service quality:
⏱️ Control punctuality in deliveries and transit times.
💶 Monitor the cost per unit transported or stored.
🧾 Evaluate the level of order fulfillment without errors or incidents.
Detection of bottlenecks and critical areas
Thanks to KPIs, it is possible to identify friction points that affect the flow of goods:
🚧 Recurring delays at certain ports or routes.
🏭 Capacity problems in warehouses or distribution centers.
🛑 Repetitive load handling incidents.
Facilitates strategic and budgetary decision making
By having clear and measurable indicators, management can:
🧭 Make strategic decisions based on objective data.
📉 Justify investments in infrastructure or technologies.
🧮 Optimize budgets by allocating resources to the most critical areas.
Transparency and trust in customers and partners
KPIs are not only useful internally, but also generate value for the customer:
🤝 They reinforce confidence by showing verifiable performance indicators.
🌍 Facilitate collaboration with international partners by speaking a common language based on metrics.
🛡️ They provide security by demonstrating that logistics is managed with professional and measurable criteria.
In short, working with logistics KPIs means moving from reactive logistics to proactive and strategic logistics, where every decision is supported by real and measurable data.
Main logistics KPIs to measure in your company
There are dozens of possible indicators in logistics, but not all of them provide the same value. The most relevant are those that allow the efficiency, service quality and profitability of the operation to be evaluated. The following are the essential logistics KPIs that any company should monitor:
On-Time Delivery Rate (On-Time Delivery)
⏱️ Measures the percentage of orders delivered on the date and time committed to the customer.
It is one of the most closely watched indicators, as it has a direct impact on customer satisfaction and the company’s image.
Logistics cost per unit shipped
💶 Calculates the total cost of the logistics operation divided by the number of units transported.
📊 Allows to identify inefficiencies in transportation, storage or distribution.
Customer service level (OTIF, satisfaction, incidents)
OTIF (On Time In Full): percentage of orders delivered on time and without errors.
🙂 Customer satisfaction surveys.
🚨 Recording of incidents (damaged products, delays, returns).
Order Cycle Time (Order Cycle Time)
📦 Measures the time from when an order is received until the customer receives it.
⚙️ A key indicator for sectors where speed of delivery is a competitive factor.
Inventory accuracy and stock rotation
📑 Percentage of coincidence between physical inventory and system records.
🔄 Stock turnover: measures the frequency with which inventory is renewed, avoiding obsolescence or costs due to excess storage.
Percentage of shipments damaged or with incidents
🛡️ Reflects the proportion of orders that are damaged or have problems during transport.
🚚 This KPI helps to detect faults in the handling, packaging or stowage of goods.
Sustainability KPI: carbon footprint per shipment
Calculates the CO₂ emissions generated per unit transported.
♻️ Increasingly relevant for companies committed to sustainability and to comply with international environmental regulations.
More info in: Environmental Logistics or Green Logistics: What it is and Benefits
These KPIs, combined in a logistics scorecard, provide a holistic view of supply chain performance and enable clear identification of strengths, weaknesses and opportunities for improvement.
How to effectively establish and interpret logistics KPIs
Defining logistics KPIs is not just a matter of selecting metrics at random. To be truly useful, they must respond to the company’s strategic objectives and be based on reliable data.
The key is to convert information into knowledge that allows action and improvement of the logistics operation.
What data sources to use and how to unify them
📊 Integrate information from transportation management systems (TMS), warehouse management (WMS) and corporate ERP.
🔗 Consolidate data from suppliers, carriers and logistics operators for a unified view.
🛠️ Avoid fragmentation: if each area works with different metrics, consistency and comparability are lost.
Measurement frequency and logistics dashboards
⏱️ The periodicity depends on the indicator: some KPIs require daily measurement (e.g. on-time delivery), while others can be reviewed monthly (e.g. logistics cost).
📈 Use interactive dashboards to visualize trends and detect deviations quickly.
📲 Betting on digital tools that automate data collection and reduce human errors.
Alignment between operations, purchasing and management
🧭 KPIs must be understood and shared by all areas involved.
🤝 Involving operations, purchasing, finance and management ensures that metrics reflect a global view.
📑 This prevents each department from optimizing only “its part”, disregarding the entire chain.
SMART objectives and realistic benchmarks
🎯 Define SMART objectives (specific, measurable, achievable, relevant and time-bound).
📉 Compare results with industry benchmarks or with the company’s own history.
🛡️ Avoid unattainable goals that generate frustration and, instead, foster a culture of continuous improvement.
In short, establishing and interpreting KPIs effectively means choosing the right indicators, measuring them with the right frequency and linking them to clear objectives, turning data into a strategic management tool.
Common mistakes when working with logistics KPIs and how to avoid them
Although KPIs are a powerful tool, their effectiveness depends on how they are defined, measured and interpreted. Many companies make common mistakes that turn KPIs into simple numbers with no real impact on logistics management.
Measuring for the sake of measuring: KPIs of no real use
❌ Defining indicators just because they are fashionable or because other companies use them.
📊 A KPI must be directly linked to a strategic objective; otherwise, it generates noise instead of clarity.
Lack of context: comparing without valid references
📉 Measuring results without an internal or external benchmark makes it impossible to assess whether performance is good or bad.
It is essential to establish comparisons with own historical data or with industry standards.
Failure to react in time: lack of action after analysis
🚨 The KPI should not be a static data, but a warning signal.
⚙️ Measuring without implementing corrective actions turns the KPI into a decorative number with no operational value.
Disconnect between operational metrics and business strategy
🧭 Sometimes companies optimize operational KPIs (e.g. reduce costs) without considering their impact on customer satisfaction or overall competitiveness.
🔗 KPIs must be aligned with the organization’s vision and strategy to avoid internal contradictions.
Avoiding these mistakes is as important as selecting the right KPIs. The key is to define few, well-designed, useful and actionable indicators that really guide decisions and improve the supply chain.
Across Logistics, your trusted logistics partner
In an industry where every minute counts and competitiveness depends on objective data, working with an operator that measures, analyzes and optimizes its performance through KPIs makes the difference between reactive logistics and logistics excellence.
At Across Logistics. KPIs are part of the operational culture. Thanks to indicators such as on-time deliveries, cost per unit shipped or the level of incidents, the company assures its customers of a data-driven, transparent and continuous improvement-oriented management.
What does this mean for your company?
⏱️ Compliance with deadlines with a rigorous control of punctuality in deliveries.
💶 Cost efficiency, optimizing each link in the supply chain.
🛡️ Risk reduction, with incident monitoring and quality control.
📊 F ull visibility, with data that enables informed and strategic decision making.
Trust and transparency, working with a partner who shares measurable results.
With a consolidated international network, experience in critical sectors such as pharmaceuticals and the ability to adapt to each customer’s requirements, Across Logistics is positioned as a trusted global partner. It not only manages operations, but also continuously monitors and optimizes them, ensuring that the supply chain is safe, efficient and competitive.
In short, choosing Across Logistics means having an ally that turns KPIs into tangible results: faster deliveries, controlled costs and more satisfied customers.
