Which metric is commonly used to evaluate logistics performance?

The on-time delivery rate is a critical metric in logistics performance evaluation because it directly reflects the efficiency and reliability of the supply chain. This metric measures the percentage of shipments delivered on or before the promised delivery date. A high on-time delivery rate indicates that a logistics operation can effectively manage its processes, ensuring that goods are delivered as promised, which is essential for maintaining customer satisfaction and trust.

In logistics, meeting delivery commitments is fundamental, as delays can lead to increased costs, loss of customer confidence, and potential damage to relationships with clients. Therefore, organizations often prioritize improving their on-time delivery rates as a key performance indicator. By focusing on this metric, companies can identify areas where improvements in processes, communication, or planning can be made to enhance overall logistics performance.