New research suggests that while shippers and carriers are refining their performance metrics, the question remains: Are these KPIs truly driving better decision-making, or are they reinforcing outdated industry norms?
How KPI Benchmarks Are Shifting in Supply Chain Management
A new study from RXO, The Logistics Professional’s Guide to KPIs, conducted with research firm Qualtrics, examines how 1,000 industry professionals are reshaping performance metrics in response to evolving supply chain pressures. The study examines how 1,000 industry experts are setting standards for key performance indicators (KPIs) and how these benchmarks have evolved in response to market shifts, technological advancements, and post-pandemic supply chain disruptions.
The supply chain industry has long relied on KPIs to evaluate efficiency, but are businesses measuring what truly matters? With rapid shifts in consumer demand and ongoing supply chain volatility, traditional performance indicators may not be keeping pace with real-world challenges. With shifting consumer demand, new logistics technologies, and an increasingly fragmented freight market, organizations are taking a more structured approach to performance measurement. According to the study, 86% of shippers now reference their logistics KPIs at least weekly, up from 79% in 2022, with nearly half checking them daily.
The Push for Standardized Metrics
Standardizing industry metrics is gaining traction, yet there’s a risk of over-reliance on benchmarks that don’t reflect individual business needs. While 87% of shippers and 90% of carriers favor more uniform KPI standards, the reality is that rigid benchmarks can sometimes stifle agility. The majority of shippers (87%) and carriers (90%) believe there should be clear KPI benchmarks, an increase from 78% and 74% in 2022, respectively. This shift suggests that businesses are looking for greater alignment on what defines strong supply chain performance, reducing variability in expectations across the industry.
While core transportation KPIs—such as on-time delivery, tender acceptance, and payment processing—have remained relatively stable since 2022, the study found that performance expectations have become slightly more flexible. The increasing complexity of global logistics may be prompting companies to balance operational goals with practical challenges, leading to more adaptable performance thresholds.
Why KPI Management Matters for Shippers and Carriers
The research highlights that A significant finding from the study is how KPI visibility influences pricing and partnerships. While 95% of carriers adjust their rates based on a shipper’s operational efficiency, and nearly all consider KPI expectations before agreeing to move a load, the question remains: Are these metrics actually incentivizing better performance, or are they simply a compliance checkbox? A striking 95% of carriers stated that inefficient shipping practices influence the rates they offer shippers, while 99% consider a shipper’s KPI expectations before agreeing to move a load. This reinforces the idea that companies with well-defined, realistic KPI strategies can secure better rates and improved carrier capacity.
For companies navigating today’s supply chain complexities, KPIs should serve as a tool for continuous improvement rather than rigid targets. The focus should be on using data to drive adaptability, enhance collaboration, and create strategies that align with long-term business goals, not just short-term performance reviews. As KPI expectations continue to evolve, companies that adapt to new measurement practices will be better positioned to optimize efficiency, strengthen partnerships, and navigate an increasingly data-driven logistics landscape.
