Why Carrier Performance Visibility Matters in Today’s Supply Chain

In the fast-moving shipping industry, carrier performance metrics are essential for maintaining control, cutting shipping costs, and meeting rising customer expectations. Whether you run a growing ecommerce brand or manage logistics for a large company, you need visibility into your carriers’ performance to stay competitive.

As the market evolves and delivery SLAs tighten, relying on gut instinct or outdated rate history isn’t enough. You need quantifiable data to gain insights, identify areas for improvement, and make informed decisions that lead to cost savings, better efficiency, and stronger customer relationships.

What Are Carrier Performance Metrics?

Carrier performance metrics measure how well your carriers deliver on their promises, from on-time delivery and transit consistency to cost control and tracking quality.

By monitoring these performance metrics, shippers can compare results across multiple carriers, specific trade lanes, and services to understand overall performance and uncover ways to save money or negotiate better rates.

Think of it as freight benchmarking, but focused on service quality, reliability, and delivery outcomes,  not just pricing.

The Key Carrier Performance Metrics to Track

To truly understand your shipping process, go beyond basic KPIs. Here are the carrier performance metrics that matter most for your shipping business:

1. On-Time Delivery Rate

Definition: The percentage of shipments delivered on or before the promised date.
Why it matters: Customers remember when a carrier is late. Track on-time delivery by shipping routes and services to determine where delays occur.

2. First Scan Time

Definition: The time between label creation and the first physical scan by the carrier.
Why it matters: Long first scan times may signal pickup delays or internal handoff issues in your shipping process. Shorter scan times mean smoother operations.

3. Transit Time Variability

Definition: The difference between expected and actual delivery durations across trade lanes.
Why it matters: Predictability builds trust. When transit times vary widely, it’s harder to provide accurate delivery estimates, hurting your customer experience and control over the supply chain.

4. Damage and Claims Rate

Definition: The percentage of shipments that arrive damaged or need reimbursement.
Why it matters: Damage hurts financial performance and company value. Benchmark this metric by carrier and service level to identify areas where handling or packaging improvements are needed.

5. Tracking Visibility

Definition: The percentage of orders with accurate, real-time tracking updates.
Why it matters: Poor visibility increases WISMO (“Where Is My Order?”) requests and frustrates customers. Reliable data access improves satisfaction and reduces support costs.

6. Cost per Shipment (Including Accessorial Charges)

Definition: The total costs of each shipment, including surcharges and accessorial charges.
Why it matters: A carrier’s performance isn’t just about delivery speed, it’s about value. Comparing shipping costs per trade lane helps you understand whether you’re truly paying the best rates.

7. Exception Rate

Definition: The percentage of shipments experiencing delays, holds, or misroutes.
Why it matters: Exceptions slow fulfillment and create support work. Reducing exception rates improves efficiency and overall performance.

How to Collect the Right Data for Benchmarking

The foundation of any strong shipping business is accurate data. Before you can benchmark or compare carriers, make sure you’re collecting the right quantifiable data consistently.

What to Track

• Shipment volume and delivery results
• Freight rate history and current market rates
• Carrier performance by service and trade lane
• Accessorial charges, transit times, and exceptions

How to Collect It

Use a Transportation Management System (TMS) or shipping platform like VESYL that tracks multiple carriers in one place. This ensures you can calculate averages, gain insights, and determine your overall performance compared to industry benchmarks.

When your data is clean and normalized, you can truly see how your shipping operations perform, and negotiate better contracts with your carriers.

How to Benchmark Carrier Performance Step by Step

Step 1: Normalize and Segment Your Data

Standardize your data (timestamps, labels, etc.) and group results by:

• Shipping routes (Zones 2–8)
• Service type (Ground, 2-Day, Expedited)
• Weight class or package type

This lets you compare carriers on the same level and identify areas where performance diverges.

Step 2: Establish Benchmarks Over Time

Benchmark each performance metric over a rolling 30- or 60-day window to account for fluctuations in the freight market. Use industry benchmarks as reference points to see where your company stands.

Step 3: Visualize and Analyze Results

Use dashboards to track carrier performance, monitor shipping costs, and highlight services or trade lanes with below-average performance.

Look for trends that reveal business opportunities or inefficiencies.

Step 4: Run “What-If” Scenarios

Scenario analysis helps you determine how changes affect costs and efficiency:

• What happens if you move 20% of shipments to another carrier?
• Could using a regional carrier improve on-time delivery on certain routes?
• Would rerouting certain shipments improve transit times?

This data-driven approach enables shippers to make informed decisions and find new business opportunities in their market.

When to Switch or Rebalance Carriers

Switching carriers isn’t about chasing the lowest rate, it’s about aligning carrier performance with your supply chain goals.

You should consider switching when:

1. Chronic SLA Violations: Frequent missed on-time deliveries.
2. High Variability: Unpredictable transit times that hurt customer trust.
3. Excessive Exceptions: Repeated issues add hidden costs to operations.
4. Surcharges and Fees: Rising accessorial charges and complex pricing.
5. Negotiation Stalemate: The carrier won’t adjust contracts or pricing despite clear data.

Smarter Strategies for Multi-Carrier Shipping

Many leading companies balance performance and cost through multi-carrier strategies:

• Dual-sourcing: Split volume between two carriers for flexibility and leverage.
• Zone-based routing: Use regional carriers where they outperform nationals.
• Automated selection: Technology can automatically choose the service with the best value based on current market rates.

This ensures efficiency, cost savings, and reliable service quality without overcomplicating operations.

The Future of Carrier Performance in the Shipping Industry

Today’s shipping industry rewards visibility and agility. Companies that track carrier performance metrics in real time can compare, calculate, and control every part of their shipping process, from freight costs to transit performance.

By turning data into insight, you can:

• Identify areas for improvement
• Negotiate better rates with carriers
• Save money while maintaining top-tier service
• Discover business opportunities across trade lanes

In short: Visibility creates value. Data drives better decisions.

Key Takeaway

Tracking carrier performance metrics isn’t just about measurement, it’s about enabling smarter, faster, and more profitable decisions in your shipping business.

With clean data, consistent benchmarking, and real-time insight, shippers can:

• Stay ahead of competitors
• Save money on shipping
• Deliver reliably across all shipping routes
• Strengthen customer trust