Carrier performance data provides vital information and multiple data points that enable data driven decision making. It becomes actionable when you (1) track on-time delivery rate by service/zone, (2) measure scan-to-scan delays to spot bottlenecks, (3) map ZIP-level risk to adjust routing, (4) analyze damage/claim trends to fix packaging or carrier mix, and (5) auto-reroute exceptions using rules tied to live performance.

Common key performance indicators and performance metrics used for optimizing processes include:

• On-time delivery rate
• Average transit time
• Exception frequency
• Damage/claim rate
• Carrier cost per shipment

1) Turn OTD% into routing rules

• What to track: On-time delivery rate (OTD rate) by carrier, service, zone, package type, and weekday. OTD rate is a key metric for evaluating supply chain efficiency and delivery reliability.
• Action: If OTD% for Service A to Zones 6–8 < 92% in the last 30 days, prefer Service B with equal/≤+5% cost. This process helps inform decisions when selecting the best carrier.
• Tip: Use rolling 7/30-day windows so rules adjust quickly after peak weeks.

2) Diagnose scan-to-scan delays (first-mile, sort, last-mile)

• What to track: Median & 90th-percentile hours between key scans: Acceptance → Departure, Arrival Hub → Out for Delivery, Out for Delivery → Delivered. Analyze scan data across shipments to identify trends and performance issues.
• Action: If Hub-to-OFD 90th-pct > 10 hrs in Lane X, swap to carrier with better hub SLA or earlier induction cutoff.

3) Build a ZIP3 risk heatmap

• What to track: Late rate, RTS rate, and average transit variance at ZIP3/ZIP5.
• Action:
• Flag red ZIPs (late rate > 8%) and automatically pick services with “guaranteed by” SLAs. Mapping ZIP-level risk supports supply chain management and logistics management by providing visibility into high-risk areas and enabling data-driven decisions to optimize shipping operations.
• Suppress economy services to those ZIPs during promo periods, and identify potential disruptions in high-risk ZIPs to proactively adjust routing and maintain on-time delivery performance.

4) Close the loop on damages & claims

• What to track: Damage/claim rate by SKU class, packaging type, carrier, and route. High damage rates can negatively impact inventory management by causing stock discrepancies and delays in replenishment.
• Action:
• If fragile SKUs + Carrier C show >50% of damages, change to thicker mailers or double-wall boxes and test alt carrier for 2 weeks.
• Reducing damages helps lower unnecessary costs and increases the percentage of orders delivered on time, supporting better delivery reliability.
• Negotiate claim thresholds or surcharge relief with the data.

5) Automate exception handling at label time

• What to track: Live performance score combining last 7-day OTD%, scan gaps, and lane-level variance.
• Action: Use shipping software as part of a strategic approach to rate-shop after applying a performance threshold (e.g., exclude services with score < 70) to optimize costs during exception handling.
• Bonus: Auto-notify customers if predicted delivery drifts > 1 day; set a proactive coupon workflow for VIPs.

KPIs to watch: OTD%, P90 transit variance, late-delivery rate by zone, exception auto-resolution rate, per-order cost vs. baseline.