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  • Writer's pictureMichael Sena

8 Key Metrics for Logistics Businesses to Track on their Business Intelligence Platforms

In today's competitive business environment, data-driven decision-making has become indispensable. For logistics businesses, tracking the right metrics is about gaining insights into operations and, ensuring customer satisfaction, optimising profitability, and staying ahead of the curve.


We reached out to leading industry professionals and business owners to share their insights on the one key metric that logistics businesses should prioritise in their business intelligence platforms.




Here's what they had to say.


Track On-Time Delivery Performance

Logistics businesses should closely monitor "On-Time Delivery Performance." This metric measures the percentage of orders delivered within the promised timeframe. It's crucial because timely deliveries directly affect customer satisfaction and retention.


Late deliveries lead to dissatisfied customers and potential contract breaches. By tracking this metric, businesses can identify operational bottlenecks, optimize routes, and enhance resource allocation. For instance, if delays occur frequently on a specific route, adjustments can be made to improve efficiency. On-time delivery fosters trust, loyalty, and positive brand perception.


Focusing on this metric in business intelligence platforms significantly improves customer relationships, operational efficiency, and overall profitability in the logistics sector.



Measure Revenue per Trip

Revenue per trip is one of the crucial metrics for logistics businesses. This metric involves measuring the profitability of a specific route.


It enables companies to pinpoint profitable routes for cost-saving strategies and maximizing profits. This helps identify lucrative opportunities while optimizing operational efficiency.



Monitor the Transit Time

One of the key metrics that logistics businesses should be closely tracking in their business intelligence platforms is transit time. Transit time refers to the total time taken for goods to be transported from one place to another.


This metric is crucial as it directly impacts customer satisfaction, inventory management, and overall operational efficiency. For example, a shorter transit time shows efficient processes and can lead to increased customer satisfaction.


Delays in transit time can cause stock-outs, increased holding costs, and potential loss of customers. This is why logistics businesses should monitor and optimize this metric to ensure seamless operations and superior customer service.



Assess Carrier Performance Rate

Carrier Performance Rate: The reliability of third-party carriers is pivotal for logistics success. By tracking the carrier performance rate, the punctuality and reliability of various carriers can be assessed.


Regular lapses might necessitate a renegotiation of terms or even a switch in partners to ensure the business maintains its reputation for timely deliveries.


Span Chen, Growth Director, Notta


Manage Cost Overruns

In logistics, cost overruns are pretty inevitable. It's hard to stop the transport of goods in order to renegotiate. Most times, it makes sense to keep the job moving and deal with recoupment on the next job.


As a result, logistics businesses should review and manage how far costs are from the target. In aggregate, it's something a good business should be lowering (and even making negative) over time.



Be Aware of Your Carbon Footprint

Logistics businesses should track their carbon footprint as a key metric in their business intelligence platforms. Monitoring and reducing their carbon footprint aligns with sustainability goals, demonstrates commitment to environmental responsibility, and provides a competitive edge.


By tracking emissions from transportation, warehouse operations, and supply-chain activities, businesses can identify areas for improvement, implement sustainability initiatives, and contribute to a greener future.


For example, a logistics company can measure its carbon emissions per mile traveled, analyze data to identify inefficiencies, optimize routes, and invest in eco-friendly vehicles or renewable energy sources.


Tracking carbon footprint can attract environmentally conscious customers, improve brand reputation, and support compliance with environmental regulations.


Jason Cheung, Operations Manager, Credit KO


Look at Inventory Turnover

One of the most important metrics that logistics businesses should track is their inventory turnover. This metric measures how many times per year a business sells its inventory. It can help you understand what your customers want and how much they're willing to pay for it.


If you have too little inventory, your customers cannot purchase what they need from your company. However, if you have too much inventory, then that means you're paying money for something that's not being sold—and that's not good either!


Inventory turnover is also important because it tells us how quickly our business is turning around products. This is essential for ensuring we have enough cash flow in our business to keep operations running smoothly.


Paul Eidner, Chief Operating Officer, CarnoGel®


Evaluate Load Time Efficiency

Load Time: Efficiently loading goods ensures timely dispatch and reduces waiting costs for carriers. I closely monitor the average time taken to load shipments onto transport vehicles.


A protracted load time may suggest staffing issues, equipment malfunctions, or organizational inefficiencies that need urgent addressing to maintain transport schedules and avoid additional costs.


Ranee Zhang, VP of Growth, Airgram


With its intricate networks and operations, the logistics sector requires comprehensive and diverse metrics to ensure its seamless functioning. While every metric brings its value to the table, the underlying theme is clear: a keen focus on customer satisfaction, operational efficiency, profitability, and sustainability.


Logistics companies can stay competitive and ensure long-term growth and success by leveraging these insights from industry stalwarts and integrating them into business intelligence platforms. As the world of logistics continues to evolve, so will the metrics we use to measure its success, but the commitment to delivering the best will always remain paramount.


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