Measuring supply chain KPIs is key to enhancing operational efficiency, managing costs, and controlling logistics operations. 63% of organizations now use technology solutions to track the success of their supply chains. Businesses can identify delays, avoid penalties, and improve decision-making across their supply chains by focusing on the right metrics.

For those managing container-focused shipments, having access to real-time, accurate tracking and insights can help streamline operations and reduce costly disruptions. Solutions like Vizion provide the tools to track containers across their journey, enabling better visibility and smarter planning.

10 Key Supply Chain KPIs and Metrics to Measure

Monitoring key performance indicators (KPIs) helps businesses track progress, identify areas for improvement, and make data-driven decisions. Below are the 10 most important KPIs and metrics you should measure to enhance efficiency, reduce costs, and improve customer satisfaction in your logistics operations.

1. On-Time Delivery Rate

The On-Time Delivery Rate measures the percentage of shipments delivered on or before the promised date. This metric is crucial for assessing the reliability of your logistics operations and ensuring customer satisfaction.

Why it matters

On-time delivery is often the foundation of customer trust and efficient supply chain operations. A high on-time delivery rate directly impacts a company's ability to manage resources effectively and meet customer expectations.

• Customer Satisfaction: Timely deliveries build trust and strengthen relationships with customers.
• Operational Impact: On-time deliveries are often key to efficient downstream processes.
• Competitive Advantage: Consistently meeting delivery deadlines helps distinguish your service from competitors.

Maintaining a high on-time delivery rate means your operations are aligned with customer needs and business goals.

How Vizion Helps

With the right technology in place, maintaining on-time deliveries becomes more manageable. Vizion’s real-time tracking and accurate data help you ensure shipments arrive as scheduled.

• Real-Time Tracking: With real-time container tracking, Vizion provides continuous updates on your shipments, ensuring you're always informed of their status.
• Accurate ETAs: Vizion’s data gives you accurate ETAs based on up-to-date tracking information, helping you plan and manage resources effectively.
• Proactive Delivery Management: By monitoring container movements across multiple sources, Vizion enables you to spot potential delays early, allowing for timely interventions to prevent disruptions.

With Vizion, you can confidently manage deliveries and keep your customers satisfied.

2. Average Dwell Time

Average Dwell Time measures the time a container spends at a terminal before being picked up. It's an essential indicator of port efficiency and the overall effectiveness of container handling processes.

Why it matters

Longer dwell times can be costly and affect the flow of goods through the supply chain. Efficiently managing dwell time ensures containers are quickly moved to the next stage, avoiding delays and improving container availability.

• Cost Implications: Extended dwell time often increases costs, including port storage fees and delays in loading/unloading.
• Container Availability: High dwell times reduce the availability of containers for new shipments, leading to inefficiencies in container utilization.
• Operational Efficiency: Efficiently managing dwell time ensures smooth operations at terminals and faster processing of shipments.

Reducing average dwell time ensures containers are processed faster, keeping costs low and operations running smoothly.

How Vizion Helps

Vizion’s real-time tracking and port event monitoring can help you monitor container movements and reduce unnecessary terminal delays.

• Last Free Date Alerts: Vizion provides Last Free Date notifications, letting you know when containers will incur demurrage charges. This helps you stay ahead of any potential delays.
• Available for Pickup Notifications: Vizion provides Available for Pickup alerts to ensure you can coordinate pickups promptly, minimizing dwell time and reducing fees.
• Port Event Monitoring: With direct connections to over 60 global ports, Vizion informs you about container status and helps streamline coordination with drayage providers, further optimizing terminal operations.

By using Vizion, you can reduce dwell time, avoid costly delays, and improve the efficiency of your terminal operations. Talk to an expert now!

3. Container Tracking Accuracy

Container Tracking Accuracy measures how often a shipment's location and status data match the actual situation. This metric is critical for ensuring the data you rely on to manage logistics is accurate and up-to-date.

Why it matters

Inaccurate tracking data can lead to poor decisions, missed opportunities, and unnecessary delays in the supply chain. Reliable, real-time information is essential for operational success, as businesses depend on it to make informed decisions at every step.

• Operational Decision-Making: Inaccurate data can lead to unnecessary reroutes, missed shipments, and scheduling problems.
• Customer Trust: Customers rely on accurate delivery updates to plan accordingly.
• Risk of Delays: Mismatched data could cause confusion, leading to delays in container pickup, delivery, or clearance.

Maintaining a high level of tracking accuracy is essential for smooth logistics operations and satisfied customers.

How Vizion Helps

Vizion provides reliable, multi-source tracking data that ensures the accuracy of container status and location updates across various supply chain stages.

• Multi-Source Data: Vizion aggregates data from multiple sources, including AIS, EDI, and terminal connections, providing verified, accurate tracking updates.
• Real-Time Updates: With continuous real-time updates, Vizion ensures that the location and status data you receive always aligns with actual conditions, reducing discrepancies.
• Verified Events: By pulling information from trusted sources, Vizion ensures that container events are accurately captured and verified, helping you avoid misinformation and miscommunication.

By utilizing Vizion’s accurate tracking data, you can make better decisions and ensure that operations run smoothly from start to finish. Track a container now!

4. Estimated Time of Arrival (ETA) Variance

ETA Variance measures the difference between shipments' planned and actual delivery times. This KPI helps assess how closely your operations align with your delivery schedules.

Why it matters

A smaller ETA variance indicates better planning and more reliable delivery schedules. Large variances can lead to operational disruptions, miscommunications, and customer dissatisfaction.

• Better Planning: A smaller variance helps improve the accuracy of future planning, as it reflects better alignment between expected and actual delivery times.
• Fewer Disruptions: Reducing ETA variance minimizes delays and disruptions in the supply chain.
• Customer Expectations: Meeting or exceeding ETA expectations builds customer trust and helps enhance the overall customer experience.

Ensuring a minimal ETA variance can help you streamline operations and maintain strong customer and partner relationships.

How Vizion Helps

Vizion’s real-time tracking provides accurate updates on container movements, helping you maintain more reliable ETAs and reduce variance in delivery times.

• Real-Time Container Tracking: With real-time tracking, Vizion offers the most up-to-date information on container movements, enabling better prediction of ETA changes.
• Accurate Event Data: Vizion integrates multiple data sources to provide the most accurate event updates, giving you better visibility into container arrival times.
• Proactive Adjustments: By tracking container movements and changes in real-time, Vizion allows you to adjust your logistics plans ahead of time, reducing the impact of delays.

With Vizion, you can improve your ETA accuracy and ensure smoother, more predictable operations.

5. Transportation Cost per Container

Transportation Cost per Container is calculated by dividing the total transportation spend by the number of containers moved. This metric helps evaluate the cost efficiency of your shipping operations.

Why it matters

This KPI highlights inefficiencies and areas where cost savings can be made. Tracking transportation costs helps identify opportunities for route optimization, better carrier selection, and shipment consolidation.

• Cost Efficiency: Understanding transportation costs per container allows you to spot areas where you can reduce expenses and improve profitability.
• Carrier Performance: Comparing costs across different carriers can help you benchmark performance and decide which carriers offer the best value.
• Shipment Consolidation: Tracking transportation costs also helps identify opportunities for consolidating shipments, reducing the number of trips, and ultimately lowering costs.

How Teams Can Use This KPI for Optimization

Tracking this KPI allows teams to identify areas for improvement in carrier selection and route efficiency. With the right data, teams can optimize shipping operations and reduce overall costs.

• Benchmark Carrier Performance: Teams can analyze transportation costs across various carriers to determine which ones offer the most cost-effective solutions.
• Evaluate Route Efficiency: By comparing transportation costs across different routes, teams can identify the most efficient paths, minimizing unnecessary expenses.
• Identify Opportunities for Cost Reduction: Identifying routes or carriers with higher-than-expected transportation costs can highlight areas where adjustments or negotiations can be made for better pricing.

6. Demurrage and Detention Fees Incurred

Demurrage and Detention Fees Incurred refers to the total fees paid due to port delays or in returning containers. These fees typically occur when containers are not picked up or returned on time, leading to additional charges.

Why it matters

These fees represent avoidable costs and often indicate inefficiencies in the supply chain. By identifying the root causes of delays, businesses can minimize or eliminate these extra charges, reducing overall operational costs.

• Cost Impact: Demurrage and detention fees can quickly increase and become significant, eroding profit margins.
• Operational Inefficiency: Frequent charges for delays point to operational issues, poor coordination, or missed deadlines.
• Customer Relationships: These fees negatively affect the business's ability to manage shipments efficiently, affecting customer satisfaction.

How Vizion Helps

Vizion helps reduce demurrage and detention fees by providing key tracking information and alerts, allowing you to manage container movements proactively.

• Last Free Date Alerts: Vizion provides Last Free Date notifications, ensuring you know exactly when containers are at risk of incurring fees so that you can plan timely pickups.
• Better Coordination: By tracking the status of containers in real-time, Vizion enables better coordination with drayage providers and port operators to avoid delays and minimize fee exposure.
• Port Event Monitoring: Vizion’s port event tracking, including Available for Pickup and Last Free Date events, provides timely insights into container readiness and the risk of incurring additional fees.

With Vizion’s alerts and event data, you can reduce the likelihood of incurring unnecessary demurrage and detention charges, improving operational efficiency and cost management.

7. Supply Chain Cycle Time

Supply Chain Cycle Time measures the total time from placing an order to final delivery. This KPI helps evaluate how quickly goods move through the entire supply chain, from order initiation to the customer’s doorstep.

Why it matters

A shorter supply chain cycle time leads to faster response times, more efficient operations, and better resource use. Reducing cycle time enables businesses to adapt quickly to changing market demands and deliver products faster to customers.

• Faster Response Times: A quicker cycle time means your business can react faster to market changes and customer needs.
• Improved Inventory Turnover: A shorter cycle time ensures products move through the supply chain quickly, improving inventory turnover and reducing excess stock.
• Competitive Advantage: The ability to deliver products faster than competitors helps create a competitive edge in a fast-paced market.

Optimizing the supply chain cycle time can enhance business agility, improve cash flow, and create stronger customer relationships.

This is especially relevant for operations directors and supply chain managers who manage global lead times. Tracking and optimizing cycle time is essential to maintaining efficient and cost-effective operations.

• Managing Global Lead Times: Operations directors and supply chain managers often deal with long lead times across multiple regions. Monitoring this KPI allows them to pinpoint areas where time delays can be reduced to improve overall performance.
• Improving Efficiency Across the Supply Chain: By focusing on cycle time, teams can identify process delays and make adjustments to ensure smoother operations and quicker deliveries.

8. Shipment Visibility Rate

Shipment Visibility Rate refers to the percentage of in-transit containers with up-to-date status information. This metric helps track how much visibility your operations have into the real-time status of shipments across the supply chain.

Why it matters

High visibility into your shipments allows for proactive decision-making and problem-solving. With better visibility, teams can address issues before they escalate, optimize routing, and improve overall operational efficiency.

• Proactive Problem-Solving: Accurate, real-time tracking allows teams to identify potential delays and issues early, making it easier to take corrective actions.
• Better Planning: Clear visibility into the status of shipments enables better resource allocation and planning across the supply chain.
• Customer Satisfaction: Providing customers with accurate, timely shipment updates improves their experience and builds trust.

How Vizion Helps

Vizion provides centralized, real-time tracking updates across the ocean, giving you a complete, end-to-end view of container movements.

• Centralized Tracking: Vizion combines tracking data from multiple sources, including ocean carriers and terminals, into a unified view.
• Real-Time Updates: With continuous, real-time updates, Vizion ensures that you always have the latest status of your containers, enabling more accurate decision-making.
• End-to-End Visibility: By tracking containers from port to final destination, Vizion improves visibility across the entire supply chain, making it easier to monitor progress, anticipate issues, and keep customers informed.

9. Inventory In Transit

Inventory In Transit refers to the value or volume of goods currently being shipped across the supply chain. This KPI provides insight into the status of goods that have been ordered but have not yet arrived at their final destination.

Why it matters

Understanding inventory in transit is crucial for managing working capital and planning for future cash flow needs. By knowing the value or volume of goods in transit, businesses can make informed decisions about inventory replenishment and manage cash flow more effectively.

• Managing Working Capital: By knowing the inventory value in transit, businesses can ensure enough capital is available to meet their financial obligations while goods are en route.
• Cash Flow Prediction: Clear visibility into the volume or value of goods in transit helps finance teams predict cash flow needs and plan for future payments.

This KPI is particularly valuable for CFOs, warehouse managers, and procurement leads responsible for managing inbound inventory and ensuring that capital is efficiently allocated.

• For CFOs: Monitoring inventory in transit helps CFOs manage cash flow by predicting when goods will arrive and payments will be due.
• For Warehouse Managers: Understanding the flow of goods in transit helps warehouse managers prepare for incoming stock, reducing delays in unloading and storing inventory.
• For Procurement Leads: Tracking in-transit inventory enables procurement teams to better coordinate inbound inventory and plan for future orders based on arrival times and quantities.

10. Exception Rate

Exception Rate measures the percentage of shipments that experience disruptions, such as delays, reroutes, or missing updates. This KPI helps businesses monitor the frequency and severity of issues during shipment handling.

Why it matters

A low exception rate indicates that your operations are running smoothly, with minimal disruptions. High exception rates can signal inefficiencies, poor planning, or communication breakdowns, leading to operational delays and increased costs.

• Operational Smoothness: A lower exception rate means fewer disruptions in the supply chain, leading to more predictable and efficient operations.
• Cost Control: Each disruption in the supply chain often comes with additional costs, whether through re-routes, expedited shipping, or customer compensation.
• Customer Satisfaction: Reducing the exception rate also reduces the likelihood of delivery delays, which directly impacts customer satisfaction.

How Vizion Helps

Vizion’s accurate and frequent tracking updates ensure that teams are always informed about their shipments, allowing them to address issues before they escalate.

• Accurate, Real-Time Updates: Vizion provides continuous, accurate tracking data, enabling teams to monitor shipments closely and respond promptly to any delays or disruptions.
• Proactive Response: By offering frequent updates on container status and location, Vizion allows businesses to resolve issues proactively, reducing the need for last-minute interventions.
• Reduced Exception Volume: With real-time visibility into container movements, Vizion helps prevent exceptions from occurring by giving teams the information they need to stay ahead of any issues.

With Vizion, businesses can reduce exception rates, improve operational efficiency, and enhance customer satisfaction.

Final thoughts

Monitoring these 10 supply chain KPIs equips teams with the insights needed to control operations, minimize unexpected disruptions, and drive continuous improvement in logistics performance.

With real-time tracking, accurate data, and detailed port event monitoring, Vizion enhances your ability to measure and optimize these KPIs. Vizion offers timely updates on container status, enables proactive management of potential disruptions, and provides actionable insights for ongoing supply chain improvement.

Ready to improve your logistics performance? Book a demo now and learn how our solutions can help you optimize your supply chain, reduce costs, and improve operational efficiency.

FAQs

1. How do I choose the right KPIs for my supply chain?

The right KPIs for your supply chain depend on your business goals, operational priorities, and specific challenges. Common KPIs include On-Time Delivery, Average Dwell Time, and Transportation Costs. 

It’s important to align your KPIs with the areas you want to improve, such as cost savings, customer satisfaction, or operational efficiency.

2. How often should I monitor supply chain KPIs?

The frequency of monitoring KPIs depends on the metric and your business needs. For real-time tracking, metrics like On-Time Delivery and Container Tracking Accuracy should be monitored daily or weekly. 

Others, like Supply Chain Cycle Time, may be reviewed monthly or quarterly.

3. What impact does real-time tracking have on supply chain KPIs?

Real-time tracking significantly improves KPIs like On-Time Delivery, Container Tracking Accuracy, and ETA Variance. By receiving instant updates on container movements, businesses can proactively address delays, optimize routes, and keep customers informed, leading to improved efficiency and satisfaction.

4. How can KPIs help reduce supply chain costs?

By measuring and analyzing KPIs such as Demurrage and Detention Fees, Transportation Costs, and Average Dwell Time, businesses can identify inefficiencies and areas where costs can be minimized. 

Proactive monitoring allows for better decision-making, which helps avoid costly disruptions and optimize operations.