3 KPIs that carriers & shippers should be tracking

Every supply chain business is nuanced, with different goals at different times. There are a few broad KPIs that asset-heavy organizations like carriers and shippers should monitor to grow.

Selecting the right KPIs, including supply chain metrics, can be difficult. In some cases, managers hurt performance by flooding operations with too many KPIs.

Only track what is critical to success. Too many KPIs distract teams from core goals. It is still important to measure performance against metrics that give an accurate read on progress and provide clarity for the work.

Experts note that having 6 to 8 KPIs in a single department can cause overload or system failure due to overanalysis.

This article looks at three core KPIs for asset-driven service providers and why they matter. Use them as a starting point, then add KPIs that fit your operation.

Top 3 KPIs for shipping

You can measure delivery performance with these KPIs for carriers and shippers.

1) Cash-to-cash cycle time

Tracking cash-to-cash cycle time helps monitor finances as cash flows in and out of the business.

The cash-to-cash cycle is the time between when a business pays its suppliers and when the business receives payment from its customers.

This KPI is useful for setting expectations between vendor and carrier, establishing a cadence of regular, predictable payments. In an asset-driven industry with products moving quickly, tracking cash flows is critical.

Shorter cycles often signal a leaner, more profitable operation. The metric can also indicate how efficiently you are using assets and resources to deliver reliably.

Aim for shorter cash-to-cash cycles, balancing supplier and customer needs. An overly aggressive target can strain inventory or supplier relationships.

Consistent monitoring strengthens both asset management and financial visibility.

2) Inventory turnover rate

Track inventory movement to avoid large swings.

Inventory turnover is how many times inventory sells and is replaced over the course of one year.

Use this KPI to gauge velocity and efficiency across the flow of goods.

Turnover also reflects demand. If inventory turns quickly, the market is active for those products.

For most categories, faster turnover improves revenue and reduces storage costs. Track the KPI over time and compare against your category norms. If turnover accelerates, consider testing price, packaging, or mix changes to capture the upside.

3) Customer fill rate (OTIF)

Customer fill rate shows the percentage of orders you can fulfill from current stock. It indicates whether you can consistently provide reliable delivery without frequent backorders and delays.

Because the aim is to deliver orders on time and in full, this KPI is often called On Time In Full (OTIF).

For warehouses, fill rate depends first on inventory. It can also be affected by staffing levels and supplier lead times.

For carriers, meeting OTIF includes delivering without damage and avoiding transit delays. Using OTIF across suppliers, warehouses, and carriers encourages collaboration across the chain.

Monitoring fill rate surfaces inefficiencies across supply and delivery, making it a practical KPI for most inventory-driven businesses.

Work the right KPIs into daily operations

Too many KPIs create confusion. A focused set aligns teams and partners. Shippers and carriers should select KPIs that reflect asset intensity.

Start by tracking OTIF, inventory turnover, and cash-to-cash cycle time. These metrics inform financial choices, asset decisions, and communication with partners.

About the author

Sydney Wess leads Clutch’s supply chain research and content efforts. As an Editorial Associate, she ensures content on Clutch’s platform helps business buyers vet and determine the best services and solution providers for their needs.