How Operations Managers Can Drive Efficiency with the Right Metrics

For Operations Managers, logistics isn't just about getting goods from A to B. It's about doing it faster, cheaper, and smarter—while keeping customers happy. But how do you know if your logistics function is truly performing at its best? The answer lies in KPI logistics tracking.

At Sengers LCA, we help businesses transform logistics from a cost centre into a competitive advantage. And it starts with tracking the right logistics KPIs—key performance indicators that give Operations Managers real-time visibility and control over their supply chain performance.

Why Logistics KPIs Matter More Than Ever

With rising fuel costs, increased customer expectations, and supply chain disruptions becoming the norm, Operations Managers can’t afford to fly blind. The right logistics KPIs allow you to:

• Make informed decisions with real-time data

• Identify inefficiencies before they become costly problems

• Benchmark performance across teams, routes, or suppliers

• Improve service levels and on-time delivery

• Align logistics with broader business goals

But not all metrics are created equal. Tracking too many KPIs—or the wrong ones—can lead to data overload and decision paralysis.

7 Essential Logistics KPIs Every Operations Manager Should Track

Here are the most impactful logistics KPIs to keep your supply chain agile and cost-effective:

1. On-Time Delivery Rate

Why it matters: A reliable delivery rate boosts customer satisfaction and reduces rework or returns.

Formula: (On-time deliveries / Total deliveries) × 100

2. Order Accuracy

Why it matters: Mistakes cost money and damage your brand. High accuracy means fewer complaints and lower reverse logistics costs.

Formula: (Accurate orders / Total orders) × 100

3. Freight Cost per Unit Shipped

Why it matters: This KPI helps pinpoint cost inefficiencies across different modes, carriers, or locations.

Formula: Total freight cost / Units shipped

4. Inventory Turnover

Why it matters: This shows how efficiently inventory is being used—too slow and you're tying up cash; too fast and you risk stockouts.

Formula: Cost of goods sold / Average inventory

5. Warehouse Utilization Rate

Why it matters: Efficient space usage leads to better throughput and lower operational costs.

Formula: (Used warehouse space / Total available space) × 100

6. Average Delivery Time

Why it matters: Customers demand speed. This metric helps you track how quickly you fulfil orders from dispatch to delivery.

Formula: Total delivery time / Number of deliveries

7. Logistics Cost as a Percentage of Sales

Why it matters: This KPI helps measure logistics efficiency relative to business performance.

Formula: (Total logistics cost / Total sales) × 100

How to Get the Most Out of Your Logistics KPI Tracking

✅ Align KPIs with business goals: Don’t track KPIs for the sake of it. Focus on metrics that support your growth, service, or cost reduction strategies.

✅ Automate your reporting: Manual data tracking is time-consuming and error-prone. Tools like Sengers LCA’s reporting suite give you real-time dashboards and insights.

✅ Set benchmarks and targets: Whether it’s internal performance or industry standards, benchmarking keeps your team motivated and focused.

✅ Continuously improve: Use KPIs as a springboard for optimisation—not just monitoring. Run tests, implement improvements, and measure the impact.

Turn Your Data Into Decisions with Sengers LCA

If you're still managing logistics in spreadsheets or struggling with fragmented data, it’s time for a smarter approach. Sengers LCA acts as your outsourced logistics department—providing expert oversight, clear reporting, and proactive logistics management tailored to your business.

We don’t just help you track KPIs—we help you improve them.

Ready to Optimise Your Logistics KPIs?

Let’s discuss how we can support your operations team with expert logistics tracking, reporting, and performance optimisation.

Contact us today and let's discuss how we can support you.