How KPIs are Reshaping Supply Chains

By leveraging KPIs and understanding how their performance tracks against industry standards, supply chain professionals can build a smarter supply chain strategy.

Dee Karen Adobe Stock 1455931354
Dee karen AdobeStock_1455931354

The acceleration of technology across the supply chain has massively increased the amount of data available to companies, and as a result, we see a clear evolution in how businesses are approaching KPI management in their logistics operations. Manual processes are becoming increasingly automated, integrated, and intelligent. Today’s shippers and carriers are adopting greater levels of technology, leveraging AI, increasing connectivity, and improving their ability to monitor performance.

In February, RXO released a KPI research study to gather insights into the current state of KPIs in the industry and how shippers and carriers are using technology to measure and pull insights from these metrics. By leveraging KPIs and understanding how their performance tracks against industry standards, supply chain professionals can build a smarter supply chain strategy.

Below are some top takeaways from the study.

Shippers and carriers are gaining confidence in KPI tracking

One of the most compelling findings from the survey indicated that 99% of both shippers and carriers rate themselves as intermediate or advanced in KPI tracking. This likely stems from increased monitoring, with 86% of shippers and 80% of carriers referencing their KPIs at least weekly, both significant increases over past surveys.

In addition to the survey’s broader findings, RXO released targeted insights on how leading industry verticals view and manage KPIs. The findings indicated that food and beverage shippers were the biggest believers in KPIs, with 96% of respondents indicating that KPIs are essential to logistics management.

As these companies look to leverage the insights provided by tracking against KPIs, they’re also keeping an eye on emerging technologies like AI. While confidence in tracking against KPIs has largely advanced independent of these technologies to date, 90% of respondents agreed that their ability to quickly identify patterns, predict potential issues, and automate reporting will have a significant impact on the speed and ease with which they’re able to track and manage KPIs over the next two years. Retail and healthcare shippers, in particular, are leaning into these new technologies with over 70% of respondents in both verticals stating they’ve already begun using AI in logistics operations.

A push for global KPI standards

Even with more confidence in tracking, leveraging KPIs and the insights they provide in their current state isn’t easy for shippers and carriers. Case in point: 76% of shippers and 80% of carriers agree that turning KPI data into actionable insights is challenging and time consuming. Though the value of these insights are clear, there’s a significant barrier for shippers and carriers looking to leverage them.

A majority of shippers and carriers agree that there should be industry standards for KPIs that are agreed upon across the industry, with those majorities also agreeing that shippers and carriers should be held accountable for achieving the standards. Many shippers (71%) still tier their customers and change KPI standards for different accounts. This can be beneficial since different customers have different demands, but fluctuating KPIs can compound the negative impacts of market shifts. With both shippers and carriers looking for stability, the outcry for standardization is getting louder.

Attitudes on whether the standards should be higher or more relaxed varied. Regardless of where the benchmarks fall, they would provide these companies with a way to determine if they skewed far from the baseline, which could present a higher risk of supply chain disruption.

The industry response to rising KPI importance


For shippers, the increasing weight behind KPI monitoring and management has been accompanied by a rising use of third-party vendors. Nearly 64% of shippers noted that they are looking outside of their organization for at least some of their KPI management (26% are using an outsourced provider, and 38% rely on their freight providers). This increase in outsourcing is reflective of larger mindset shifts with business leaders, who are recognizing the value that specialized expertise and resources can bring to optimizing KPI tracking, analysis, and strategic implementation.

Carriers are also shifting the way they manage KPIs. In 2022, 66% of carriers were relying on manual methods (Excel, emails, etc.) to manage at least some of their KPIs. Use of manual management methods has decreased to 51% in 2025, while fleet management systems and dispatching software have both seen increased use (86% and 59% in 2025, respectively). The replacement of manual processes by technology platforms for carriers holds true to the same mindset shift that has driven shippers to third-party providers; specialized resources allow companies to get the most out of the complex KPI management process.

Moving forward with KPIs


The current state of KPI management in the logistics industry, as highlighted in RXO’s research study, indicates that metrics are more important than ever. KPI management has continued to evolve and transform as carriers and shippers recognize the significant impact they will hold on the industry's future. While both shippers and carriers indicate a high level of confidence in the current state of their KPI tracking and management, further advancement of practices through emerging technologies will bring continued development to their processes in the near future.

A continued focus on KPIs presents an unprecedented opportunity for shippers and carriers to create resilient and adaptable business models. As management capabilities become more sophisticated and accessible, standardization of KPIs across the logistics industry will likely remain a focal point for business leaders.

Page 1 of 114
Next Page