Skip to content

Distribution KPIs

Distribution KPIs are measurable performance indicators that help track and evaluate the distribution department’s ability to ensure successful management and implementation of supply chain processes. They play a critical role in optimizing the flow of goods and improving the organization’s overall logistics performance. These KPIs include metrics such as on-time delivery rate, order lead time, order accuracy rate, inventory turnover, and order processing time. By monitoring and analyzing these Distribution KPIs, companies can identify areas of improvement and optimize their distribution operations to reduce costs, increase efficiency, and enhance customer satisfaction. Ultimately, the success of the distribution department is crucial to the organization’s profitability and growth.

Distribution KPIs Reporting Dashboard

Channel Design & Management

The Channel Management Office is responsible for the creation and maintenance of marketing and distribution channels. They also build and sustain relationships with brokers and other channel partners to enhance sales growth and revenue.

Related: Channel Manager, Manager of Channel Sales, Channel Marketing Manager, Channel Program Manager

View all

  • Number of Distribution Employees – The total number of full time equivalent (FTE) staff directly engaged in the distribution task
  • Sales Channel Density – An assessment of the number of possible clients reached by distribution agent or intermediary
  • Order Tracking Capabilities – A yes/no metric showing if the distribution estimation office gets order shipping information (delivery dates, types of interruptions, accuracy) in real-time
  • Real-Time Tracking Capabilities – A yes/no metric showing whether the firm has the ability to locate its transportation courier at any particular time for outgoing or internal transportation
  • Number of Distribution Centers – The total number of distribution facilities (both privately operated and outsourced) in operation.
  • Delivery Cycle Time – The average number of hours needed to distribute merchandise and/or materials from port to port

View less

Fleet Management

The Fleet Management Office is responsible for maintaining the company’s transportation assets, which facilitate the physical transfer of goods from producers to consumers or intermediaries such as brokers or retail outlets. They ensure the timely and efficient transportation of products while minimizing costs and ensuring compliance with regulations.

Related: Fleet Manager, Driver, Fleet Maintenance Manager, Fleet Procurement Manager, Operations and Logistics Manager

View all

  • Preventative Maintenance Compliance – The percentage of transportation vessel properties that are updated and on schedule on all expected precautionary maintenance jobs and inspections versus the total number of vessel properties
  • Maintenance Coverage Rate – The percentage of costs related to repair and maintenance of vessels that are protected by warranty or by insurance versus the total vessel repair and maintenance expense
  • Maintenance Failure Records – A yes/no metric showing whether the records of non-standard maintenance efforts are kept for each vehicle, including an explanation of the work done
  • Fleet Accident Frequency – The average number of driver mishaps per 100,000 driving hours acquired by the firm’s fleet
  • Average Age of Fleet – The average age (in years) of the vehicles in the firm’s transportation assets
  • Average Mileage of Fleet – The average number of miles on vehicles in the firm’s transportation assets
  • Fleet Utilization Rate – The percentage of actual time all transportation assets are utilized versus the total time they are ready for usage
  • Average Number of lining Hours – The average number of lining hours recorded by drivers and vehicle operators over the duration of one year
  • Scheduled Equipment Maintenance – The total number of hours consumed on regular, expected maintenance for the company’s line of vehicles in a particular year

View less

Packaging

The packaging department designs and creates packaging for products while ensuring that they are securely stored and transported for delivery to customers. They are responsible for ensuring the safety and quality of products during the distribution process.

Related: Packaging Engineer, Packaging Designer, Packaging Auditor, Packaging Specialist

View all

  • Percentage of Packages with Correct Documentation – The percentage of packages transported with the right documentation (e.g. packing lists, bill of materials) versus the total number of packaged transported during a specified time period
  • Percentage of Products Damaged during Shipping – The percentage of merchandise that were spoiled at some point during the transportation process as a result of deficient packaging or storage
  • Drop Test Use – A yes/no metric showing whether the firm has executed protocols for packaging drop tests (i.e. drop packed merchandise from a specified height to evaluate packaging quality)
  • Packaging Weight as a Percentage of Total Product Weight – The percentage of the weight of the merchandise packaging versus the total weight of the packaged merchandise upon transportation
  • Quality Control Inspection Standards – A yes/no metric showing whether a regular packaging quality control procedure is executed before packages are transported
  • Shipping-Related Defect Rate – The percentage of the yearly number of product damage due to shipping-related issues versus the total number of merchandise transported

View less

Third Party Logistics Management

Third Party Logistics Management KPIs are measurable metrics that track the performance of third-party logistics providers hired by companies to manage their supply chain processes. These KPIs help evaluate the quality of service provided, cost-effectiveness, and efficiency of the logistics management system.

  • Carrier Performance tracking – A yes/no metric showing whether the firm needs individual carriers to monitor each of the following transportation-related glitched: number of deformities per shipment, number of shipments resulting in damages, number of shipments resulting in charges
  • Inventory Accuracy – The percentage of correct inventory data stored within the warehouse management system (WMS) versus the total amount of inventory data within a third-party logistics warehousing properties

View all

  • Customer Fill Rate (Third Party) – The percentage of client orders that third-party storage and distribution providers meet accurately (on schedule, in correct amount, in good condition) versus the total number of orders they meet
  • Internal Logistics Outsourcing – A yes/no metric showing whether the firm employs a third-party merchant to conduct internal shipments (e.g. manufacturer to warehouse/distribution facility)
  • Outbound Logistics Outsourcing – A yes/no metric showing whether the firm employs a third-party merchant to conduct outgoing shipments (i.e. to clients, consumers)
  • Cost of Shipment per Product – The total expense of transporting merchandise for outgoing shipments through a third-party logistics and transportation provider divided by the number of merchandise transported
  • Transportation Management System (TMS) – A yes/no metric showing whether the third-party logistics providers have transportation management systems (TMS) employed
  • Warehouse Management System (WMS) – A yes/no metric showing whether third party logistics providers have warehouse management systems (WMS) employed

View less

Logistics Health & Safety

The logistics health and safety office ensures a safe working environment for employees and compliance with regulatory requirements for delivery and disposal practices. They also monitor and measure safety-related KPIs.

Related: Logistics Safety Manager, Safety Supervisor, Compliance Planner, Distribution Compliance Officer

View all

  • Average Number of Days Between OSHA Incidents – The average number of days between Occupational Safety & Health Administration (OSHA) events at the distribution center that meet the general recording criteria.
  • OSHA Recordable Incident Rate (RIR) – The number of OSAHA incidents that meet the general recording criteria multiplied by 200,000 and divided by the total number of hours worked for a specified term
  • Health & Safety Training Hours – The average number of hours each employee gets related to workplace health and safety over a specified term (e.g. quarterly, yearly)
  • OSHA Hours Away from Work – The percentage of work hours wasted due to OSA cases versus the total hours worked over a specified term

View less

Transportation Objectives

Transportation Objectives or KPIs are designed to measure job efficiencies in the transportation industry. They provide a snapshot of the operational health, giving shippers and logistics companies’ management the information to make the right decisions to implement measures to improve employee efficiencies and capabilities.

  • Improve labor productivity – This transportation management KPI relates to how productive employees are. Labor productivity is directly related to the success of the logistics company’s operations. And it affects the receiver’s ability to earn a living. The higher the productivity rate, the greater the number of shipments fulfilled.
  • Improve on-time pick up and delivery – Adhering to the advertised schedule for pickups and deliveries is essential for organizational success. If a customer has booked and paid for a collection or delivery at a specific time, the driver must arrive on time; otherwise, it will be seen as bad customer service, resulting in lost clients.

View all

  • Improve revenue yield – Each shipment generates an overall yield. It is important to track and monitor this metric because it influences the company’s profitability metrics. This yield can also be broken down to determine where delays and unnecessary costs are eating into the shipment’s profit.
  • Improve fuel efficiency – It is vital to measure and track the fuel efficiency metric. Federal agencies mandate reporting and compliance to environmental initiatives for fewer emissions and fuel use. And the more fuel-efficient trucks, the lower the fuel costs, the lower the cost of sales, and the higher the company’s profit.
  • Improve maintenance costs – Every freight and shipping company will have maintenance costs. Trucks and equipment must be maintained to meet the minimum road worthiness requirements. It is essential to keep these costs as low as possible without compromising on driver and customer safety.
  • Improve miles driven outside a predetermined route – Route costs are included in the cost of the collection or delivery. If the driver travels outside the predetermined route, the route cost will increase. The cost of sales will increase, reducing the company’s profit. It is essential to ensure that unaccounted for mileage is not added to each trip.
  • Improve border delays – Delays, including random inspections, problems with paperwork, or traffic delays, especially cross-border delays reduce the per-mile yield and lengthens the time of transit, increasing the risk of late deliveries, increasing the cost of sales, and reducing the company’s annual profit.
  • Improve loading or unloading time – The longer it takes for a shipment to be loaded or unloaded, the more time is taken at a customer. This reduces the company’s efficiencies and increases shipment costs. The driver will also be late for all other scheduled deliveries, resulting in the need to reroute existing shipments.
  • Reduce the cost of damages – The cost to company for damages can be substantial, especially as a result of natural or human-made disasters. Despite unavoidable disasters, the company must keep the loss due to damages to trucks and equipment as low as possible.
  • Focus on safety – The cost of accidents and injuries can be substantial over time if not measured. It is critical for the business organization to be proactive when it comes to safety, including implementing warehouse safety protocols, safety measures when loading and unloading trucks, and best-practice driving protocols.
  • Improve the collaboration and partnership with suppliers efficiencies – There are instances where suppliers can absorb some of the direct logistics costs through direct cost-saving mechanisms as well as their knowledge and expertise. It is essential to improve the collaboration between your company and your suppliers to benefit from the possible reduction in the cost of sales.

View less

Distribution center or logistics management is a core function of all retail organizations. Real-time Key Performance Indicator (KPI) tracking and measurement provide the organization with the ability to measure the logistics department’s ability to perform its organizational functions and key expectancies successfully. Without this ability, the business runs the risk of losing customers because products will not be distributed timeously and effectively.

Logistics KPIs like the distribution center channel design and management, fleet management, shipping and packaging, quality control, rate of breakages and damage, logistics health and safety requirements, third-party distribution center management, and real-time order tracking capabilities and management.

Benefits of AssessTEAM cloud-based employee evaluation form for your distribution team.

  • Use on all smart devices
  • Include custom KPIs
  • Keep historic trends
  • Include eSignatures
  • 360-degree feedback
  • Unlimited customization
Menu