9 KPIs to Track With a Modern TMS
byNick Fryer/March 31, 2025/inTechnology
Nick Fryer Vice President, Marketing
Logistics KPIs To Analyze
Capturing logistics KPIs, sometimes called LPIs, or Logistics Performance Indicators, are critical for creating visibility, streamlining operations, and optimizing your supply chain. Here are some of the most important transportation KPIs that you can track using a TMS.
1. On-Time Delivery (OTD)
OTD is a measure of the percentage of deliveries that arrive on time, as defined by the shipper. For example, while some shippers consider early deliveries to be “on time,” others, notably big box retailers such as Walmart, will assess penalties for deliveries that are either early or late per their “On-time, In Full” (OTIF) requirements. In the logistics industry, an on-time delivery rate of 95% or higher is a typical benchmark.
2. Transit Time
Measuring and tracking trends in transit time- the time elapsed between pickup and delivery- helps shippers and logistics service providers identify delays (due to traffic, weather, etc.) and inefficiencies (due to excessive dwell time, the amount of time a vehicle waits to be loaded or unloaded).
3. Freight Cost per Unit
Freight cost per unit can be calculated in a number of ways – per mile, per order, per weight, etc.- helping business leaders keep track of and control transportation expenses.
4. Load Capacity Utilization
Measuring and tracking utilization- the amount of available capacity that is being used in a given mode of transportation (also known as “cubing out”- is critical for maximizing operational efficiency and minimizing transportation costs.
5. Freight Bill Accuracy
Tracking the percentage of freight bills that match the contracted rates reduces unnecessary expenses related to billing errors. Automating the freight audit and payment process is a reliable and scalable way to catch these errors and capture cost savings.
6. Shipment Volume
Tracking shipment volumes provides insights into demand fluctuations that are an essential input for resource planning.
7. Freight Claims Ratio
Comparing the number of freight claims due to loss, damage, or theft to the total number of orders can shine a spotlight on packaging, handling or carrier performance issues that can impact customer satisfaction.
8. Carbon Emissions
Businesses are under increasing pressure from consumers, investors and regulators to reduce greenhouse gas (GHG) emissions, a large portion of which are directly related to transportation. Tracking these emissions is the first step in achieving your sustainability goals by reducing unnecessary miles travelled and increasing fuel efficiency.
9. Carrier Performance
With over 1 million for-hire trucking companies in the U.S. alone, measuring carrier reliability in terms of on-time pickup and delivery performance, damage/claims rates, and transit times is essential for effectively managing your carrier network.
How TMS Integration Enhances Data Visibility
Implementing a TMS can immediately bring shippers out of the “dark” and into a digitalized environment with enhanced visibility to data and shipments. Integrating your TMS with other systems in your supply chain can further enhance your visibility and enhance the performance of the connected platforms. At Sheer Logistics, we utilize SheerExchange, our proprietary integration Platform as a Service (iPaaS), to connect disparate systems, normalize data, create visibility, provide easy access to reporting and analysis, and foster automation in the supply chain.
While the possibilities are limitless, here are some of the key systems, platforms, and partners that SheerExchange typically integrates with the TMS:
- ERP systems, including Oracle, SAP, Microsoft Dynamics, Workday, Infor, and more
- Fuel programs, such as Breakthrough Fuel
- Rating Engines, such as SMC3
- Warehouse Management Systems (WMS), including Manhattan Associates, Highjump, JDA, and more
- Real-Time Transportation Visibility Platforms (RTTVP) including project44, Fourkites, Macropoint and others
- Yard Management platforms
- Customer Experience platforms
- Market Intelligence platforms
- Other supply chain partners, including vendors, customers, carrier network, etc.
In addition to connecting these systems, SheerExchange cleanses and normalizes the data the flows between them. This remedies the “garbage in, garbage out” data scenario shippers often struggle with and helps you get the most out of your investments in these platforms and systems.
How Sheer Logistics Can Help You Improve Your KPIs
Sheer Logistics can not only help you implement a fully-integrated ecosystem of best-in-class logistics management technology- we can also help you manage your supply chain more efficiently and effectively. Here are a few ways in which the Sheer Logistics team can help you improve your transportation management KPIs.
Custom Solutions
Whether you engage with our 3PL, 4PL/Managed Transportation Services, or consulting team, every solution we deliver is fully customized to your supply chain challenges and goals, including:
- Drop Trailer programs
- Consolidation
- Multi-stop truckload
- Cross-Border logistics
- ISO tank logistics
- LTL Outsourcing
- Full supply chain outsourcing
- Cargo security solutions
- White glove services
- Scope 3 CO2e emissions tracking
- Freight network optimization
- Process analysis, design and documentation
Real-Time Data
Using an integrated TMS to capture essential real-time data sets the stage for advanced reporting and analytics. The Sheer Logistics team can help you centralize your data for a variety of users across your enterprise and create custom dashboards and reporting based on the user’s profile and business needs. Real-time data fuels both predictive analytics, which predict what may happen next in the supply chain, and prescriptive analytics, which provides recommendations for how to respond to supply chain scenarios. This unprecedented level of visibility empowers business leaders to make data-driven decisions, improving KPIs and overall supply chain performance.
Industry Expertise
Sheer Logistics has supported the needs of shippers across many industries, including food and beverage, manufacturing, chemicals, automotive, construction, retail, mining, and more. Our team of veteran industry experts have seen it all, and assisted companies ranging from fast-growing small businesses to global enterprises improve their KPIs and drive profitability.
Benchmarking and Continuous Improvement
In addition to accelerating real-time business decision-making, the data collected by a TMS also supports long-term initiatives such as benchmarking and continuous improvement.
- Internal Benchmarking allows companies to compare current performance to historical data, revealing trends in OTD, order accuracy, freight costs, fuel costs, utilization and more.
- External Benchmarking allows companies to compare their performance to industry standards, ensuring they remain competitive.
- Long-term trend analysis empowers business leaders with data that can reveal patterns that can be addressed with targeted improvements. By analyzing the results of these improvements, business leaders can create a virtuous cycle of ongoing improvements.
Implementing a modern TMS provides unparalleled visibility and control over logistics operations, enabling you to track essential KPIs and key metrics with real-time data. By integrating disparate systems and leveraging advanced analytics, you can not only manage day-to-day transportation processes more effectively but also drive long-term success through benchmarks and continuous improvement. Sheer Logistics’ customized solutions and deep industry expertise ensure that your supply chain operates efficiently, meeting company performance goals, reducing operating costs, streamlining processes, and adapting to evolving challenges, while continuously optimizing your KPIs for maximum impact.
