GITNUX MARKETDATA REPORT 2023

Essential Shipping Metrics

Last Updated: October 31, 2023

Written & Summarized by: Jannik Lindner

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Highlights: The Most Important Shipping Metrics

1. Order Cycle Time
2. Perfect Order Rate
3. Order Fill Rate
4. Carrying Cost of Inventory
5. Shipment On-Time Rate
6. Freight Cost per Unit
7. Transit Time
8. Order Accuracy Rate
9. Shipment Damage Rate
10. Returns and Refunds Rate
11. Dock-to-Stock Time
12. Warehouse Capacity Utilization

Shipping Metrics: Our Guide

Navigating the complex world of shipping involves understanding key metrics that can optimize your business operations and profitability. Our recent study delves deep into the essential shipping metrics that matter most, from delivery time to cost per shipment. Get ready to unlock insights, streamline your shipping process, and increase your competitive edge in the industry.

Order Cycle Time

The amount of time between the customer placing an order, and the order being shipped. This measures efficiency in processing and dispatching orders.

Perfect Order Rate

The percentage of orders that are delivered on time, with the correct products, in the proper condition, and accompanied by the correct documentation

Order Fill Rate

The percentage of orders shipped in full, without any backorders or out-of-stock items. This metric demonstrates the availability and management of inventory.

Carrying Cost Of Inventory

The cost of holding inventory in stock, including storage costs, insurance, taxes, and the potential decrease in the value of products over time

Shipment On-Time Rate

The percentage of shipments that arrive at their destination within the expected delivery window

Freight Cost Per Unit

The average cost to ship a unit of product, including transportation, handling, and any surcharges or fees

Transit Time

The amount of time it takes for products to travel from the shipping origin to the final destination

Order Accuracy Rate

The percentage of orders that are shipped without any errors or discrepancies in products, quantities, or documentation

Shipment Damage Rate

The percentage of shipments that arrive at their destination with damaged products.

Returns And Refunds Rate

The percentage of shipped orders that are returned or refunded, often due to incorrect or damaged products

Dock-To-Stock Time

The time it takes for products to be received, processed, and stocked after arriving at a warehouse or distribution center

Warehouse Capacity Utilization

The percentage of available warehouse space currently being used for inventory storage. This metric helps to optimize inventory levels and identify needs for additional storage space.

Frequently Asked Questions

What are shipping metrics and why are they important?

Shipping metrics are key performance indicators (KPIs) used to evaluate and improve the efficiency, cost-effectiveness, and overall performance of your shipping processes. They are vital in identifying areas that need improvement, ensuring customer satisfaction, and monitoring the impact of changes made within your shipping operations.

What are some common shipping metrics that businesses should track?

Some common shipping metrics include (1) on-time delivery rate, (2) order-to-delivery time, (3) shipping cost per item, (4) carrier performance, and (5) average transit time. These metrics help to evaluate various aspects of your shipping process, such as timeliness, cost, and carrier efficiency.

How can shipping metrics help improve customer satisfaction?

Shipping metrics can help businesses identify areas for improvement, enabling them to deliver orders more quickly, reliably, and cost-effectively. By providing timely updates and maintaining consistent shipping times, businesses can minimize disruptions and enhance the overall customer experience, leading to higher satisfaction rates and increased loyalty.

How can businesses use shipping metrics to optimize their supply chain operations?

Shipping metrics offer valuable insights into the current performance of your shipping processes, giving you the opportunity to identify areas for improvement. By continuously monitoring and analyzing these metrics, businesses can optimize their shipping processes, identify inefficiencies, and make data-driven decisions to reduce costs, improve carrier selection, and streamline their supply chain.

How do businesses gather data for shipping metrics?

Businesses can gather data for shipping metrics by combining information from various sources such as order management systems, carrier reports, and customer feedback. Advanced technologies like logistics software, tracking tools, and Business Intelligence (BI) platforms can assist in the collection and analysis of this data, providing real-time insights and enabling ongoing performance monitoring.

How we write these articles

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.

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