Rapid is a company that understands that success in modern business critically depends on the reliability and transparency of logistics processes. Whether you are running a large production facility or developing E-commerce, choosing the right logistics partner is a strategic decision. However, how can you objectively assess their performance and make sure you are getting the best logistics services?
The answer lies in the use of clear, measurable performance indicators - logistics KPIs. Business owners, CEOs and COOs need to move beyond simple price/quality assessment and focus on data that reflects real logistics performance. Below, we'll look at 10 key indicators that will help you not only evaluate your current partner but also make the right choice of a new one.
Why it is important to evaluate a logistics partner
Transparent transport logistics is the foundation of customer confidence and financial stability. Uncontrolled delays, errors in paperwork or damage to goods can lead to significant financial losses, reduced customer loyalty and increased operating costs.
A comprehensive assessment of the logistics partner through the KPI system allows:
- Minimise risks - identify weaknesses in the supply chain before they turn into a crisis.
- Optimise costs - understand the real cost of delivery and related services.
- To increase competitiveness - to ensure quality of delivery and meeting deadlines, which is a direct advantage in the market.
Particularly critical is the following analytics for companies, The same is true for companies engaged in international transport of goods. Here, customs procedures, currency fluctuations, international legislation and geographical remoteness are added to the standard risks, making control more difficult.
10 key performance indicators for a logistics partner
A professional assessment of a logistics partner is based on specific, measurable indicators, not subjective impressions. Below are ten key metrics that will allow you to objectively assess the quality of your carrier's work. Each of these indicators reflects a different aspect of transport logistics, from punctuality to service quality. Together, they give you a complete picture of how well your logistics partner is performing and whether it is worth continuing to work with them.
№1. On-Time Delivery Rate - the rate of on-time delivery
This is the most important indicator, which demonstrates the percentage of orders delivered on time. The standard for professional carriers is a minimum of 95% on-time deliveries.
If the score is below 90%, this is a signal of serious problems with the logistics partner. It is worth analysing the reasons for delays and considering alternative logistics service providers.
№2. Perfect order ratio
This comprehensive logistics KPI measures how many orders were executed flawlessly: delivered on time, without damage, with the correct documentation and in full. The benchmark is 90% and above.
№3. Level of cargo damage
Percentage of goods that arrive at their destination damaged or spoilt. The acceptable level depends on the type of cargo, but should generally be below 0.5% for standard goods.
High levels of damage can indicate problems with packaging quality, unprofessional loading/unloading or outdated vehicles. Check whether your logistics partner has a modern fleet and monitoring systems.
№4. Speed of response to requests
How long does it take to your carrier, to respond to urgent requests or resolve a problem situation? Professional companies respond within 1-2 hours during business hours. Why is it important? In crisis situations (customs delays, vehicle breakdowns, urgent route changes), every minute counts. Slow communication can result in significant losses.
№5. The cost of one shipment
The average cost of delivering one order, including all additional costs. This indicator allows you to compare different freight providers and track the dynamics of costs.
It's not difficult to analyse - compare not only the basic freight rate, but also additional charges (fuel surcharges, customs clearance, insurance, storage). Sometimes a supposedly cheaper rate is actually more expensive due to hidden charges.
№6. Accuracy of documentation
This is the percentage of shipments with correctly executed supporting documents. This is critically important for international cargo transportation, as errors in the documents can delay the cargo at customs for days or even weeks.
The Convention on the Contract for the International Carriage of Goods by Road (CMR Convention) sets out clear requirements for documentation. A professional carrier must ensure 100% that CMR consignment notes and other documents are completed correctly.
№7. Flexibility and ability to work with complex routes
It is important for businesses to partner could provide:
- multimodal schemes;
- combined delivery;
- urgent route changes;
- delivery during peak periods.
This is especially true for manufacturers and distributors.
№8. Tracking transparency
Can you find out where your cargo is at any time? Modern logistics services necessarily include GPS monitoring systems and online tracking.
The minimum requirements are the ability to track the movement of cargo in real time, automatic notifications of key events (loading, border crossing, arrival), and access to up-to-date information 24/7. Rapid focuses on the integration of advanced tracking systems for each shipment.
№9. Efficiency of loading and unloading
This is the vehicle downtime under these operations. A high figure indicates poorly established processes at your partner or your warehouse. It's easy to measure this parameter - record the average time from vehicle arrival to departure.
Why is it important? Time is money. Optimising these processes reduces the overall cost of transport logistics.
№9. Quality of customer service
Although this indicator is more difficult to quantify, it is extremely important. Assessment:
- how quickly problems are resolved;
- whether the carrier provides proactive information;
- whether you have a dedicated manager;
- how competent the company's employees are.
To do this, you can conduct an internal survey among employees who interact with the carrier. Use a scale from 1 to 10 to rate different aspects of service.
Responsibility and partnership: The role of the legal framework
Measuring KPIs is only half the battle. The second, no less important part is to assign responsibility. That is why when you enter into an international transport contract or use in-house logistics, the penalties and reporting procedures for all key indicators should be clearly defined.
Partnership with companies that have many years of experience and transparency helps to minimise legal risks. Rapid uses its own service centre and warehouses, which provides increased control over all stages of logistics, guaranteeing that the company meets its obligations.
Conclusion
Effective business management today is impossible without constant monitoring of logistics KPIs. Using these 10 indicators, you get an objective assessment tool that goes beyond superficial promises. They allow you to turn transport logistics from a source of problems into a source of competitive advantage.
Choosing a partner who is not afraid of transparency and is ready to report on each of these indicators is key to long-term success. Rapid, as a national road carrier, guarantees not only the quality of freight transport, but also full transparency of logistics efficiency for its customers.
