Shipment Performance and KPIs

Indicator What does it measure? Why is it important?
Timely and complete delivery Order rate delivered on time and in full. The single most accurate indicator of shipment; the measure that best aligns with customer perception.
Compliance rate The portion of the ordered quantity that can be fulfilled The effectiveness of inventory policy and planning.
Excellent order rate. Orders delivered on time, complete, undamaged, and with correct documentation. A composite measure of end-to-end quality.
Order turnaround time Total time from order to delivery Competitive speed and customer expectations.
Accuracy of summation Percentage of pens collected without errors. The biggest source of returns and complaints
Vehicle occupancy rate Weight and volume capacity used The main leverage of transportation costs.
Cost per delivery The total cost of a delivery Small order and regional profitability decisions.
Waiting time The time the vehicle spent at the facility Carrier cost and capacity loss
Damage and deficiency rate Percentage of defective items identified upon delivery. Packaging and handling quality
Return rate and reasons Returned order rate and distribution The richest input for process improvement
Goods dispatch – invoice period Days between shipment and billing Direct impact on cash conversion time.
Freight invoice discrepancy Difference between expected and billed freight. Detection of uncontrolled payment
Emissions per shipment Carbon emissions from transportation Customer request and reporting obligations

The most common error in measurement.

The on-time delivery rate is measured relative to the last updated date . The delivery date is revised as delays occur, and eventually, it is counted as "delivered on the new date." This measurement overestimates performance and masks the need for improvement.

Accurate measurement is done by comparing it to the initial promise made to the customer. Revisions are tracked as a separate indicator: how many orders were delayed, how many times, and by how many days?

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