What metrics do you use to evaluate transportation provider performance?

1 On-time delivery

One of the most basic and essential metrics for transportation provider performance is on-time delivery. This metric measures the percentage of shipments that arrive at their destination within the agreed time window. On-time delivery is crucial for customer satisfaction, inventory management, and operational efficiency. You can use on-time delivery to compare different transportation providers, identify areas of improvement, and negotiate better rates and service levels.

2 Transit time

Another important metric for transportation provider performance is transit time. This metric measures the actual time it takes for a shipment to move from its origin to its destination. Transit time is influenced by factors such as distance, mode of transport, routing, customs clearance, and delays. Transit time affects your cash flow, inventory costs, and market responsiveness. You can use transit time to monitor transportation provider performance, plan your shipments, and optimize your supply chain network.

3 Damage rate

A third metric for transportation provider performance is damage rate. This metric measures the percentage of shipments that arrive at their destination with some degree of damage or loss. Damage rate is an indicator of transportation provider quality, reliability, and safety. Damage rate impacts your customer satisfaction, product quality, and profitability. You can use damage rate to assess transportation provider risk, prevent and resolve claims, and implement corrective actions.

4 Cost per unit

A fourth metric for transportation provider performance is cost per unit. This metric measures the average cost of transporting one unit of your product from its origin to its destination. Cost per unit is a function of transportation provider rates, fuel surcharges, tariffs, fees, and taxes. Cost per unit affects your competitiveness, profitability, and budgeting. You can use cost per unit to analyze transportation provider efficiency, compare different modes and routes, and negotiate better contracts.

5 Carbon footprint

A fifth metric for transportation provider performance is carbon footprint. This metric measures the amount of greenhouse gas emissions generated by the transportation of your shipments. Carbon footprint is a measure of transportation provider sustainability, environmental impact, and social responsibility. Carbon footprint influences your brand reputation, customer loyalty, and regulatory compliance. You can use carbon footprint to evaluate transportation provider green practices, reduce your emissions, and report your sustainability performance.

6 Customer feedback

A sixth metric for transportation provider performance is customer feedback. This metric measures the level of satisfaction and loyalty of your customers with the transportation provider service. Customer feedback is a source of qualitative data that complements the quantitative metrics mentioned above. Customer feedback reveals your customers' expectations, preferences, and perceptions of the transportation provider performance. You can use customer feedback to improve your customer service, identify opportunities and challenges, and build long-term relationships.