Top 7 KPIs for Optimizing Transportation Spend and Performance

Amid increasingly unpredictable supply chain snarls, more and more shippers are prioritizing transportation key performance indicators (KPIs). These tried-and-true metrics—which provide both high-level and granular snapshots of company performance and budgeting—allow shippers to react quickly and confidently to supply chain setbacks. By carefully tracking costs, efficiency, and carrier reliability, shippers can ensure customer satisfaction and meet ambitious growth targets.

7 essential transportation KPIs

1. Freight spend

This metric—which measures the total cost of all shipments to date—includes transportation costs, fuel surcharges, and accessorial fees. Beyond providing a broad overview of general spend, this transportation KPI allows shippers to assess just how quickly both essential and unexpected costs add up. 

2. Freight cost per unit

By breaking down costs even further, shippers can better optimize their transportation approach. Freight cost per unit—or the per-unit cost of all shipments to date—offers a more nuanced look at individual shipping variables and their impact on total costs. Changes in shipping volume, product size, and packaging can dramatically affect total spend—as can less flexible factors, such as transit mode and tariffs. Because these costs vary by situation, each shipper must determine their own unique optimization strategy.

Fortunately, the right technology can streamline the process. CTSI-Global’s Honeybee™ TMS integrates disconnected data and automates tedious manual workflows, providing comprehensive insight into every potential cost contributor. The result? Faster and cheaper shipments, as well as soaring customer satisfaction rates.

3. Carrier utilization

Depending on the shipping scenario in question, some carriers may prove more apt than others. By tracking carrier utilization, or the percentage of capacity used by each carrier, shippers can select the most cost-efficient carrier for each unique shipment.

4. Transit time

Today, customers expect their orders to arrive faster than ever—and that’s on top of skyrocketing demand. Retailers, too, anticipate quick and seamless deliveries. Shippers can stay afloat by documenting transit times, or the time it takes goods to travel from their origin location to the final destination. Harnessing detailed time breakdowns and related data through Honeybee™ TMS enables a thorough understanding of general delivery performance, potential areas of improvement, and carrier efficiency.

5. Delivery accuracy

This transportation KPI assesses the percentage of freight delivered on time. By prioritizing shipping accuracy, shippers can dramatically improve reliability—an essential driver of customer satisfaction and trust. Beyond ensuring timeliness, this KPI also helps shippers select carriers they can depend on—those with a proven history of bringing goods from point A to point B in one piece. 

6. Damage rate

Customers eagerly await their orders, expecting the item in the box to inspire the same feeling it did online. Few things crush that excitement—and the customer trust that accompanies it—like damaged or broken goods. By assessing damage rates, or the percentage of goods damaged during transit, shippers can identify carriers that prioritize proper handling—and avoid those that don’t. 

7. Fuel consumption

Sky-high energy costs have increased transportation spending across the board. By meticulously tracking fuel consumption, shippers can improve cost-efficiency, optimize carrier routes, and even cultivate a more environmentally friendly shipping strategy in the long run. 

Logistics technology can turbocharge strategy

Staying on top of critical transportation KPIs may seem daunting. But Honeybee™ TMS makes it easy, equipping shippers with real-time tracking, end-to-end visibility, and other data-driven insights in the battle against ever-evolving supply chain uncertainties. 

Ready to turbocharge visibility when it comes to KPIs (and more)? Contact us today.