Whether you’re shipping snacks to retailers, personal care products to e-commerce consumers or cleaning supplies to fulfillment centers, as a consumer-packaged goods (CPG) shipper, you know how important it is to stay on top of your transportation data.
In fact, according to our latest original research study, 90% of CPG shippers agree that KPIs are an essential part of sound logistics management.
In the study, we worked with an independent market research firm to survey 1,000 shippers and carriers. Our goal was to create a resource that shippers of all kinds could use to better understand how their peers are setting and managing their logistics KPIs.
But what about the research insights for CPG shippers, specifically?
Below, you’ll find a breakdown of the results looking at the CPG shippers only (100, to be exact). Get their top logistics trends and the industry standards they use for setting KPIs.
Note: though many consider food and beverage as consumer-packaged goods, we have a separate breakdown for each industry. You can check out the food and beverage research profile here.
6 Data-Backed Logistics Trends for CPG Shippers
1. CPG shippers are all-in on logistics KPIs.
90% of CPG shippers thought KPIs were an essential part of logistics management — that figure was 1% above the average and the second-highest out of any industry.
Furthermore, 57% of CPG shippers are tracking their KPIs daily, which was 12% above the average and third overall.
2. Putting KPI data to good use is a challenge.
When asked about their biggest challenges, using data to change tactics was CPG shippers’ top choice, with 51% of respondents believing it to be a top challenge.
Their second overall challenge was changing strategy based on KPI results, at 44% of respondents.
Finally, 79% of CPG shippers believe turning KPI data into actionable insights is challenging and time consuming, which was tied for second across all industries.
3. CPG shippers believe shipping penalties are effective.
94% of CPG shippers believe shipping penalties (e.g., late fees) are an effective way to improve carrier performance.
This is 9% above the average, and the highest percentage of any industry.
4. Most CPG shippers are experimenting with AI.
70% of CPG shippers are using AI in their logistics operations, which is 3% above the average across all industries.
And they are optimistic about the possibilities — 95% believe that technology will make KPI tracking and management much easier in the next two years, making them the most bullish out of any industry.
5. Carrier compliance matters the most.
All KPIs are important — the K stands for “key” after all — but when asked to rate every core transportation metric by level of importance, freight tracking compliance and appointment scheduling compliance stood above the rest, with 48% and 45% of CPG shippers saying they were very important, respectively.
6. CPG shippers are more service oriented.
Both cost and service are important in freight shipping, but we asked respondents which was most important to their organization.
For CPG shippers, it was service, with 72% of respondents saying they prioritize performance over cost, which was 7% above the average and the highest out of any industry.
They are also more demanding on their freight providers. When asked how increasing consumer demands have impacted KPI standards, 69% of CPG shippers said they have become more demanding, 9% above the average and the second highest out of any industry.
Logistics KPI Standards, According to CPG Shippers
We’ve covered the trends, now let’s look at what CPG shippers think are acceptable performance standards for the most common logistics KPIs.
On-time delivery performance
We asked CPG shippers what they consider to be acceptable on-time delivery performance from their carriers. Here’s what they had to say, and how it compares to average across all industries in the study.
- Performance standard across all industries: 95% on-time delivery performance
- CPG shippers’ standard: 95% on-time delivery performance
- CPG vs. the rest: In-line
What is “on-time”?
We asked CPG shippers what they consider as an “on-time delivery” from their carriers. Here’s what they had to say, and how it compares to average across all industries in the study.
- Performance standard across all industries: On-time to an appointment with a 30-minute buffer
- CPG shippers’ standard: On-time to an appointment with a 30-minute buffer
- CPG vs. the rest: In-line
Shipment lead time
We asked CPG shippers how much lead time they think they should give to their carriers for truckload and LTL shipments. Here’s what they had to say, and how it compares to average across all industries in the study.
- Performance standard across all industries: 2 days of lead time
- CPG shippers’ standard: 2 days of lead time
- CPG vs. the rest: In-line
Primary tender acceptance
We asked CPG shippers what they consider to be a reasonable primary tender acceptance rate from their carriers. Here’s what they had to say, and how it compares to average across all industries in the study.
- Performance standard across all industries: 85% acceptance rate
- CPG shippers’ standard: 85% acceptance rate
- CPG vs. the rest: In-line
Demand forecasting accuracy
We asked CPG shippers what they consider to be an acceptable level of variance from their shipment forecast (in terms of load volume). Here’s what they had to say, and how it compares to average across all industries in the study.
- Performance standard across all industries: Within 10% of forecasted volume
- CPG shippers’ standard: Within 10% of forecasted volume
- CPG vs. the rest: In-line
Payment terms
We asked CPG shippers what they consider to be acceptable payment terms to their carriers. Here’s what they had to say, and how it compares to average across all industries in the study.
- Performance standard across all industries: Payment within one week
- CPG shippers’ standard: Payment within one week
- CPG vs. the rest: In-line
Keep Learning About Logistics KPIs
Want more interesting data from our logistics KPI research?
Read the full research study, an overall industry breakdown, or checkout out individual industry profiles: