RXO releases new original research that reveals how 1,000 industry experts are setting standards for key performance indicators (KPIs) and how their benchmarks have evolved since the COVID-19 pandemic.
The Logistics Professional’s Guide to KPIs research study, conducted in collaboration with third-party research firm Qualtrics, aims to equip shippers and carriers with current industry benchmarks for critical transportation metrics – from on-time delivery to primary tender acceptance.
“KPIs are essential for effective supply chain management and continuous improvement and they’re always evolving,” says Ben Steffes, VP of solutions & strategy at RXO. “Shifts in consumer demand and an influx of technology are driving this change, in combination with the dynamic and fragmented nature of the freight market. To optimize performance, businesses need consistent measurement and reporting. We released this study to help shippers and carriers benchmark their standards against how their peers approach KPIs today.”
Key Takeaways:
- The Logistics Professional’s Guide to KPIs provides an update to The Metrics That Matter, a research study published by Coyote Logistics (now part of RXO) in 2022. The update reveals how shippers and carriers have changed their approach to evaluating and managing KPIs, including:
- Shippers are more data-driven — 86% of shippers reference their logistics KPIs at least weekly (up from 79% in 2022), with 45% of shippers referencing them daily (up from 32%).
- A growing need for an industry standard — 87% of shippers and 90% of carriers agree there should be set KPI industry standards, up from 78% and 74% in 2022, respectively.
- Performance benchmarks are slightly more lenient — Industry performance standards for core transportation KPIs (on-time performance, payables, tender acceptance, etc.) are generally consistent with 2022, but underlying data shows a tendency to be a bit more forgiving.
- Being a shipper-of-choice can enable better rates and more capacity — 95% of carriers said inefficient shipping practices impact the rates they give to shippers, and 99% of carriers take a shipper’s KPI expectations into account before agreeing to move a shipment.
