Is your logistics provider meeting expectations?
Outsourcing logistics to a 3PL doesn’t mean giving up operational control. On the contrary—it demands strategic oversight through precise performance indicators that reveal whether your provider is truly delivering on service levels, cost efficiency, and operational standards.
Evaluating logistics performance is critical for any company that depends on a robust, on-time, and cost-effective supply chain. In this article, we’ll share the 7 most relevant KPIs to evaluate your 3PL, how they directly impact profitability, and what you should expect in your operational reports.
1. Why are logistics KPIs essential in a 3PL strategy?
Logistics KPIs help align your provider’s operations with your business objectives. They serve as an operational compass that allows you to:
- Identify delays and bottlenecks
- Optimize supply chain processes
- Improve the customer experience
- Make decisions based on reliable data
Keep in mind: A logistics system without measurable KPIs lacks control and traceability, putting your entire supply chain’s competitiveness at risk.
2. The 7 most important logistics KPIs to evaluate your 3PL
1. On-Time Delivery Rate
This measures the percentage of orders delivered on the promised date. It directly affects customer satisfaction and your brand’s reputation. A rate below 95% suggests logistical coordination issues.
2. Order Fulfillment Rate
Evaluates whether orders are delivered in the correct quantities—no shortages or overages. A low rate may indicate errors in picking, labeling, or packing.
3. Inventory Accuracy
Reflects the reliability of inventory management. Discrepancies between recorded and physical stock increase shipping errors and hidden warehousing costs.
4. Order Cycle Time
Measures how long it takes from order reception to final delivery. A shorter cycle time increases agility and gives you a competitive edge.
5. Cost per Order
Reveals how much it truly costs to process and deliver each order. Including hidden costs such as rework or inefficient transport is key to understanding logistics profitability.
6. Return Rate
A high return rate may point to fulfillment errors, poor product handling, or communication breakdowns. A low rate reflects logistical quality and process control.
7. Storage Capacity Utilization
Measures how efficiently your warehouse space is being used. Poor utilization can lead to unnecessary storage costs or slow inventory rotation.
3. Real example: How to interpret KPIs in practice
Imagine your company has an on-time delivery rate of 87%. It seems acceptable—until you realize it’s causing delays in Just-in-Time production lines. After optimizing your processes with a 3PL, that rate increases to 98% and order cycle time drops by 18%.
The result? Greater profitability, faster inventory turnover, and significantly improved customer satisfaction.
4. How MBR Industrial helps improve these KPIs
At MBR Industrial, we understand the importance of each logistics metric. Our 3PL logistics solutions are designed to optimize every operational aspect:
- Optimized delivery rates with smart routing and real-time tracking
- Accurate inventory supported by advanced warehouse management systems
- Faster order cycle times enabled by Just-in-Time deliveries and synchronized operations
- Efficient space utilization through strategically located distribution centers in Ramos Arizpe
Our personalized approach ensures our KPIs align with yours—delivering a streamlined and profitable operation.
5. Evaluate your 3PL based on data, not assumptions
Logistics KPIs are the language of strategic dialogue between you and your 3PL. By accurately measuring metrics like inventory, returns, and fulfillment rates, you can make data-driven decisions, optimize costs, and ensure a resilient and competitive supply chain.
At MBR Industrial, we know that clear metrics drive growth. That’s why we provide real-time visibility, custom reporting, and an operation built to exceed industry standards. Whether you’re managing industrial logistics or eCommerce fulfillment, we’re the strategic partner that powers your results.
✅ Ready to measure and improve your supply chain’s performance?
✉ Write to us: contacto@mbrindustrial.com.mx
Let’s talk about your project: 844 455 0672
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