Whether you’re a big box or mom-and-pop, an ecommerce site or a brick-and-mortar store, as a retailer, you know how important it is to stay on top of your transportation data.
In fact, according to our latest original research study, 83% of retailers 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 insights for retailers, specifically?
Below, you’ll find a breakdown of the results looking at the retail shippers only (100, to be exact).
Keep reading to learn retail shippers’ top logistics trends and the industry standards they use for setting KPIs.
6 Data-Backed Logistics Trends for Retail Shippers
1. Though most retailers think KPIs are important, they trail other industries.
While 83% of retailers thought KPIs were an essential part of logistics management, that figure was 5% below the average and the lowest out of any industry (the leader was food and beverage shippers at 96%).
Furthermore, only 34% of retailers are tracking their KPIs daily, which was 11% below the average and 32% behind the leading industry (automotive).
And while most (75%) agreed that there should be set industry KPI standards that shippers and carriers could agree on, they were still the lowest industry overall and 12% below the average.
2. Data accuracy is a challenge.
When asked about their biggest challenges, getting accurate data was retailers’ top choice, with 49% of respondents believing it to be a top challenge.
Furthermore, they struggled with data accuracy more than any other industry, and were 7% above the average.
3. Retailers struggle at turning KPI data into action.
Not only is data accuracy a challenge, taking that data and using it to make strategic changes is too.
79% of retail shippers agreed that turning KPI data into actionable insights is challenging and time consuming (3% above the average).
When asked how they would rate their ability at turning KPI data into actionable insights, only 37% of respondents said they were advanced.
4. Most retailers are experimenting with AI.
One way to help bridge the data gap for retailers? Artificial intelligence.
73% of retail shippers are using AI in their logistics operations, which is 6% above the average and second overall.
5. On-time pick up and delivery matter most.
All KPIs are important — the K stands for “key” after all — but when asked to rate every core transportation metric on level of importance, on-time pick up and on-time delivery stood out, with 40% and 39% of retailers saying they were very important, respectively.
6. Retailers 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 retailers, it was service, with 71% of respondents saying they prioritize performance over cost. This was 6% higher than the average and lines up with their most important KPI answer (on-time pick up and delivery).
Logistics KPI Standards, According to Retail Shippers
We’ve covered the trends, now let’s look at what retail shippers think are acceptable performance standards for the most common logistics KPIs: on-time delivery performance, shipment lead time, primary tender acceptance, demand forcast accuracy, and payment terms.
On-time delivery performance
We asked retailers 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
- Retail shippers’ standard: 95% on-time delivery performance
- Retail vs. the rest: In-line
What counts as “on-time”?
We asked retailers 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
- Retail shippers’ standard: On-time to an appointment with a 30-minute buffer
- Retail vs. the rest: In-line
Shipment lead time
We asked retailers 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
- Retail shippers’ standard: 3 days of lead time
- Retail vs. the rest: More demanding to freight providers
Primary tender acceptance
We asked retailers 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
- Retail shippers’ standard: 85% acceptance rate
- Retail vs. the rest: In-line
Demand forecasting accuracy
We asked retailers 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
- Retail shippers’ standard: Within 20% of forecasted volume
- Retail vs. the rest: More demanding to freight providers
Payment terms
We asked retailers 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
- Retail shippers’ standard: Payment within one week
- Retail 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: