On-Time Delivery KPIs: How to Improve This Key Metric

Posted by Port City Logistics on Oct 26, 2021 8:56:15 AM

Maintaining a commitment to safe and on-time delivery to customers with fast turnaround times lies at the heart of e-commerce transportation and shipping services. According to a study by Accenture, "The pandemic greatly accelerated online commerce growth. During the lockdown, the percentage of all brands' sales that were made online nearly doubled from 34% in 2019 to 65% in 2020. Of those online sales, a higher percentage came through marketplaces (38%) than brands' online stores (27%). But, that 27% is quadruple what brands sold through their sites in 2019." Almost every importer will have to deal with shipment delays at some point. Knowing how to mitigate delays and monitor shipping KPIs can help shippers improve on-time delivery. 

1. Start by Focusing on Quality in Manufacturing

On-time delivery starts with product manufacturing and creation. Delays in production and shipping of the products to warehouses and distribution centers will cause delays throughout the supply chain. Keeping in touch with production teams and monitoring inventory levels and distribution schedules can help ensure orders placed by customers can get shipped out promptly with minimal instances of delayed shipping

2. Ensure Proper Inspection and Packaging Before Container Loading

Inspections and detailed records of shipments are often required for border crossing and shipments of certain products. It saves time when these inspections and documents can be populated before trucks and containers get loaded. For instance, showing customs officers the required documentation, rather than stopping for a full inspection on the spot, can save a great deal of time during the shipping process for the supply chain.

3. Set Clear Expectations for Carrier Performance and How You'll Hold Them Accountable

When creating carrier contracts, shippers must specifically indicate the expectations and goals they have for the partnership, as well as the consequences if the carrier fails to uphold their end of the agreement. Holding carriers accountable and monitoring their progress toward delivery completion will continue as a vital metric for shippers to manage.

4. Use Data to Manage Lead Times for Reordering

On-time delivery relies heavily on the ability of managers and supply chain directors to manage lead times and processing time for inventory orders, shipment packaging, and the preparation work needed for shipping.  Embracing technology and using automated tracking, data analysis, real-time communication, and 3PL service provider platforms can make shipping faster and easier across the entire supply chain. 

5. Consider Letting Amazon FBA Handle the Domestic Side of Freight Management

For companies that deal with international and domestic shipments, delegating specific loads to a third-party partner or other carriers/providers can help simplify the process. Letting local shipping companies manage domestic freight management and shipping can free up in-house personnel to focus on the more complicated international shipments. This can speed up processes throughout the network and improve delivery results. 

6. Eliminate Customs Delays With Quality Labeling and Proper Documentation

One major obstacle to on-time delivery comes from delays and problems at border crossings. Rushing to get shipments out the door as soon as possible matters, but not at the expense of good labeling and documentation. Redoing paperwork, on-site inspections, and other issues can lead to extensive delays as well as fees and penalties at the border. Balancing speed and accuracy during shipment preparation has a significant impact on deliveries.

7. Leverage Local Warehousing to Reduce Delays Upon Arrival

The final step that shippers can take to improve delivery success rates and delivery timelines is to streamline local warehousing operations and collaborations. The loading and unloading of inventory and the movement of products within the warehouse can significantly impact delivery times. Simplifying processes to shave even a few minutes off routine procedures can add up quickly and make on-time delivery a more straightforward goal to attain.

Work With an Expert in Drayage Like Port City Logistics to Do All the Above and More

The essential and expected services associated with e-commerce shipping and high-demand order management are critical when trying to make on-time deliveries. However, this can only happen when delivery KPIs remain adequately monitored and maintained. Issues related to lead times, production status, delivery ETAs, and customer communications can impact shipping times and, by association, customer satisfaction. The need to improve this key metric has only increased in light of the sudden surge in e-commerce. Contact Port City Logistics today to learn more.

Topics: Ocean Freight Shipping