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The Importance of Monitoring Logistics KPIs in 2026
Looking to stay ahead of the logistics game in 2026? We have you covered! Despite challenges, the logistics industry is expected to go from strength to strength and is forecast to grow by billions of dollars over the next few years. Rapidly changing market conditions require faster decision-making and adaptation to changes. That’s why we compiled the 15 most needed logistics KPI examples, you need to track for success!
Setting Up Your Logistics KPIs
Monitoring logistics KPIs is not just good practice but essential for success. Logistics KPIs are essential for optimizing, measuring, and tracking performance in critical areas such as customer service, efficiency, reducing costs, and taking proactive steps. Additionally, KPIs can be used for benchmarking, and setting up sales targets. So, if you want to stay ahead of the competition, don’t neglect KPIs for warehouse and logistics!
The success of your company does not only depend on blindly setting up your logistics KPIs. For successfully setting up the right logistics KPIs follow these tips:
- Identify your business objectives: this should be aligned with your company’s vision and mission statements, which helps in strategy development.
- Perform industry benchmarking: compare your activity against other companies, so you can get an understanding of what performance levels you should aim for.
- Analyze existing data: analyze your current performance. For example, how many orders you are handling, how much time it takes to deliver items, availability of capacity, delivery rates, and transportation costs.
- Collect customer feedback: analyze or ask for feedback and satisfaction levels of your customers.
- Ask your employees for feedback: get input from your employees and managers about needed improvements in operations.
Top 15 Logistics KPIs Overview
Order Cycle Time
Order Cycle Time measures the average time taken to deliver the product from the time the order was made.
Order Accuracy
Order Accuracy measures the percentage of orders that shipped error-free.
Number of Shipments
Number of Shipments indicates how many orders your company has sent in a period.
Lead Time
Lead Time measures the average time it takes for a supplier to prepare goods for delivery.
Stockout Rate
Stockout Rate indicates the amount of time inventory lacks stock for a given item.
Sustainability Metrics
Sustainability Metrics are a collection of metrics used for tracing a company's environmental footprint. They include:
- Carbon Emissions
- Generated Waste
- Energy Use
- Supplier Sustainability
Inventory Turnover
Inventory Turnover measures how many times a company sells and replaces its stock over a period.
Inventory Carrying Costs
Inventory Carrying Costs are the full amount businesses spend to stock and store items before they’re sold.
Customer Backorder Rate
Customer Backorder Rate is the percentage of orders that cannot be fulfilled immediately because an item is out of stock.
Average Transit Time
Average Transit Time measures how long it takes to move goods from one location to another.
Warehousing Costs
Warehousing Costs indicates the total costs associated with operating a warehouse.
Sales Lost
Sales Lost counts the percentage of sales lost because products were out of stock.
Cost per Delivery
Cost per Delivery measures the average costs of delivering an order from warehouse to customer.
On-Time Delivery
On-Time Delivery indicates the percentage of shipments delivered on time.
First-Time Delivery Rate
First-Time Delivery Rate indicates the percentage of orders successfully delivered on first attempt.
Order Management KPIs
1. Order Cycle Time
Order Cycle Time measures the average time taken to deliver the product from the time the order was made.
This is one of the most essential logistic KPIs. It measures the average time it takes to deliver the product from the time the order was made. By tracking this logistic KPI, you will be able to identify ways to increase customer satisfaction, optimize operations and reduce costs. By improving this KPI, you will be able to improve inventory turnover, and your revenue.
To find Order Cycle Time, subtract the order date from the delivery date for every order. Add all of the results together. Then divide this answer by the number of orders. Your result can be expressed as days or hours.
2. Order Accuracy
Order Accuracy measures the percentage of orders that shipped error-free.
This KPI measures the percentage of orders that were shipped without any errors, for example: ensuring the correct delivery address, the correct number of items, and sending the correct order to the recipient. A high Order Accuracy rate helps lower the number of returns and is an essential component in maintaining high customer satisfaction levels.
To find Order Accuracy Rate, divide your number of error-free orders by the total orders shipped in a period. Multiply by 100 to obtain a percentage.
3. Number of Shipments
Number of Shipments indicates how many orders your company has sent in a period.
This KPI shows how many orders your company has sent in a given time. As a result, tracking this KPI helps identify trends and changes, in turn optimizing your inventory levels, warehouse capacity, and transportation costs.
To find Number of Shipments, simply do a raw count of total shipments dispatched in a period. Be sure to track against a target or baseline.
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Supply Chain Management KPIs
4. Lead Time
Lead Time measures the average time it takes for a supplier to prepare goods for delivery.
This KPI measures the average time for a supplier to have goods ready for delivery. It is not easy to optimize this metric, because Lead Time depends on several factors including supplier location, shipping method, and available inventory levels.
To optimize the Lead Time requires a combination of continously investing in the latest technology as well as maintaining a close collaboration with suppliers It’s a big challenge, but if you are capable of optimizing this KPI, you can improve efficiency, reduce costs and ensure faster deliveries to customers!
To find Lead Time, subtract the date a purchase order was placed from the date goods are ready for delivery. Your result should be expressed in days. Track your Lead Time as an average across all suppliers.
5. Stockout Rate
Stockout Rate indicates the amount of time inventory lacks stock for a given item.
Don’t leave your customers empty-handed! You can avoid this by counting the Stockout Rate. This measures the percentage of time that inventory is out of stock for a given item. By tracking this KPI, you can identify trends, and improve inventory management by forecasting inventory levels and maintaining relationships with suppliers.
To find Stockout Rate, divide the number of days an item was out of stock by the total days in a period. Multiply by 100 to obtain a percentage.
6. Sustainability Metrics
Sustainability Metrics are a collection of metrics used for tracing a company's environmental footprint.
Increasing government regulations and customer awareness of the environment and climate change has s lead many businesses to re-evaluate their impact on the environment. This is particularly relevant for the logistics industry. By tracking Sustainability Metrics, you can reduce your environmental footprint, including water waste, CO2 emissions, electricity, and natural gas, which would promote Sustainable Supply Chain Management (SSCM). Some of the most common sustainability metrics are:
- Carbon Emissions
- Generated Waste
- Energy Use
- Supplier Sustainability
Here's how to find key Sustainability Metrics:
- Carbon Emissions: total CO₂e emitted per period (tonnes)
- Energy Use: total kWh consumed per period
- Generated Waste: total waste (kg) per period
- Supplier Sustainability: percent of suppliers meeting defined sustainability criteria
Inventory Management KPIs
7. Inventory Turnover
Inventory Turnover measures how many times a company sells and replaces its stock over a period.
We will continue our list of example logistics KPIs with Inventory Turnover. This KPI shows the efficiency of your inventory management. A higher turnover shows that products have been sold quickly, which also leads to higher revenues. By tracking this KPI you can improve efficiency, reduce waste and take proactive actions to optimize inventory.
To find Inventory Turnover, divide COGS by average inventory value.
8. Inventory Carrying Costs
Inventory Carrying Costs are the full amount businesses spend to stock and store items before they’re sold.
Don’t let inventory costs weigh you down! ICC Rate counts the total costs which businesses spend holding inventory for a set period of time. Keep track of your ICC and reduce lead times, improving order accuracy, and optimizing inventory levels. As a result, it will reduce inventory costs and meet customer demands.
To find ICC Rate, divide total inventory carrying costs by total inventory value. Multiply by 100 to obtain a percentage.
9. Customer Backorder Rate
Customer Backorder Rate is the percentage of orders that cannot be fulfilled immediately because an item is out of stock.
This KPI measures the percentage of how many orders can’t be filled at the time due to inventory stockouts or other internal factors. A high CBR rate indicates that the company has poor inventory management, which can affect customer satisfaction and loyalty.
To find Customer Backorder Rate, divide the number of backorders by total orders placed. Multiply by 100 to obtain a percentage.
Distribution KPIs
10. Average Transit Time
Average Transit Time measures how long it takes to move goods from one location to another.
This KPI measures the time how much it takes goods to move from one location to another. By tracking the ATT metrics, companies can identify delays in transit and take proactive actions to improve shipping times.
To find Average Transit Time, subtract the dispatch date from the delivery date for all shipments, and add the values together. Divide by the number of shipments. Your result will be expressed as days or hours.
11. Warehousing Costs
Warehousing Costs indicates the total costs associated with operating a warehouse.
Warehousing Cost shows the total amount of operating and maintenance costs of the warehouse. This includes all the related costs, such as rent, labour, utilities, equipment and security.
This metric shares insights into how inventory operations can be optimized, so finding warehousing services near you can lead to cost savings due to reduced transportation expenses and improved logistics efficiency.
To find Warehousing Cost (per unit), divide total warehousing costs by total units stored in the period. Warehousing Costs include rent, labor, utilities, equipment, and security.
12. Sales Lost
Sales Lost counts the percentage of sales lost because products were out of stock.
Avoid frustration and costly mistakes, by counting Sales Lost KPI! This KPI counts the percentage of lost sales due to out-of-stock products. By tracking this KPI, you can make data-driven decisions to optimize inventory and prevent future sales loss. It’s a key KPI company's brand image and keep your loyal customers!
To find Sales Lost Rate, divide the value (or volume) of orders lost to stockouts by the total potential sales value (or volume). Multiply by 100 to obtain a percentage.
Delivery KPIs
13. Cost Per Delivery
Cost per Delivery measures the average costs of delivering an order from warehouse to customer.
This is an excellent KPI for measuring the average costs of delivering an order from the warehouse to the customer. By monitoring this KPI, logistics companies can identify areas where costs can be reduced or delivery routes optimized.
To find Cost per Delivery, divide total delivery costs by the total number of deliveries in a period.
14. On-Time Delivery
On-Time Delivery indicates the percentage of shipments delivered on time.
This KPI shows the percentage of shipments that are delivered on or before the delivery date. A high OTD rate indicates efficient logistics operations and service.
To find On-Time Delivery (rate), divide the number of shipments delivered on or before the promised date by total shipments in the period. Multiply by 100 to obtain a percentage.
15. First-Time Delivery Rate
First-Time Delivery Rate indicates the percentage of orders successfully delivered on first attempt.
The last one on our logistics KPIs examples is the First-Time Delivery Rate. This KPI measures the percentage of orders that are successfully delivered at the first attempt. Failing to deliver from the first time, it can cause customer dissatisfaction, increased costs and delayed operations, which will distract all the chain.
To find First-Time Delivery Rate, divide the number of orders delivered on first attempt by total delivery attempts. Multiply by 100 to obtain a percentage.
Track Your Logistics Performance with Plecto!
It's not enough just to have logistics KPIs - though they can be used as a powerful tool for enhancing company success! A highly competitive environment requires quick and effective decisions. So, say goodbye to manual tracking and hello to data-driven decisions with Plecto logistics KPI dashboards!
By integrating your CRM data, you can easily build a logistics KPI dashboard with justa few clicks! You can identify trends, risks, and take proactive actions to run your logistics operations smoothly. Plecto dashboards provide the real-time insights you need to optimize your operations and improve your company’s bottom line.
Sign up for a free demo, and make tracking logistics KPIs a breeze!
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FAQs
What are the most important logistics KPIs?
There are numerous KPIs that are valuable for warehouse managers to keep track of. However, five of the most important logistics KPIs are:
- Order Accuracy
- Inventory Turnover
- Warehousing Costs
- First-Time Delivery Rate
- Transit Time
How do you measure logistics performance?
There's not one way to measure logistics performance. Rather, it involves accumulating data from multiple KPIs and metrics and assessing these holistically. A single source of truth such as Plecto lets warehouse managers access all relevant, real-time data on a dashboard view, allowing decisions to be made quickly and effectively.
What is a good-on time delivery rate?
While it varies between industries, a good on-time delivery rate is generally considered to be 95% or higher. There's more leeway for international shipping, however, with a decent on-time delivery rate considered to be about 80% or higher.
IVETA BALTRUKENAITE
Content Writer
