What KPIs Should I Track to Measure Logistics Performance?

When evaluating a third-party logistics (3PL) partner, e-commerce business owners often focus on pricing, speed, and scalability. And, for good reason. Customers expect orders to be shipped quickly, and sellers need pricing that maintains profit margins and a logistics partner that can grow with their business.

As a 3PL, we know that pricing and speed alone don’t tell the full story. To truly understand whether an outsourced logistics partner is performing as promised, sellers need visibility into the right e-commerce 3PL data. That’s why we’ve identified five key performance indicators (KPIs) that e-commerce brands should track/request performance reporting on when evaluating a 3PL.

Top 5 KPIs to Track for Logistics Performance

Here are the top five performance metrics that merchants should look for when assessing a third-party logistics provider:

1. Order Accuracy

Every order that is shipped incorrectly can create problems, including returns, reships, customer service calls, negative reviews, and eroded trust in a brand. Even a small dip in accuracy can quietly eat into margins and customer loyalty. This is why it’s so important to choose a 3PL that is committed to packing accurate orders. Often, logistics companies will boast about providing 99.9% order accuracy, but it’s important to understand the metrics they’re using to calculate this percentage.

The best partners track order accuracy at both the order level and the line-item level, breaking errors down by type and using data from barcode scans, audits, and returns to continuously improve performance. This level of transparency reflects a well-run operation and a clear focus on delivering a consistent customer experience.

An “accurate” order means that the right SKU, quantity, lot/bath, packaging, and documentation were shipped to the correct destination. If any of these things is missed, the order should be considered “inaccurate.” Order accuracy is typically measured by:

3PLs typically capture order accuracy errors through:

• WMS scans (pick, pack, ship verification)
• Customer claims/RMAs
• Returns inspections
• Audit checks (random or targeted)
• Carrier exceptions (wrong address, mis-ship

Typical Benchmarks:

• Industry acceptable: 99.5%+
• Strong 3PL: 99.8%+
• Best-in-class: 99.9%+

Best-in-class 3PLs use barcode scanning at every touchpoint to prevent errors before orders ship. At G10, orders are scanned at every touchpoint, which is how we consistently achieve and maintain 99.9% order accuracy.

2. Expected Ship Date/On-Time Shipping

Meeting promised ship dates is critical for customer satisfaction. Late shipments lead to canceled or returned orders, unhappy customers, and negative reviews. But, claims like “we offer on-time shipping 99% of the time” are only meaningful if the 3PL can clearly explain how they track ship date. Some common methods include scheduled ship date, carrier pickup date, or customer delivery date.

Look for a partner that is transparent about how they track ship date and monitors tracking delays by cause, including inventory issues, staffing shortages, carrier problems, or process inefficiencies and then uses this data to proactively prevent future late shipments.

An “on-time” shipment should mean the entire order left the fulfillment center warehouse and reached the customer within the promised timeframe. The on-time shipping percentage formula is typically calculated by:

The ship date is often tracked using:

• Warehouse Management System (WMS) timestamps when orders are picked, packed, and staged
• Carrier pickup confirmations
• Audit checks to identify late shipments
• Exception reports for orders delayed due to inventory, staffing, or system issues

This metric can give e-commerce businesses reassurance that their 3PL is meeting its commitment to ship orders as promised, which is critical for customer satisfaction and trust.

Typical Benchmarks:

• Industry acceptable: 95%+
• Strong 3PL: 97%+
• Best-in-class: 99%+

At G10, we pride ourselves on maintaining 99.9% on-time shipping throughout the year because we know how important this is for customer satisfaction – especially for our Seller Fulfilled Prime (SFP) clients. We achieve this goal by hiring seasonal workers as needed, investing in robotic technology to speed up and improve order picking.

3. Cost Per Order

Controlling fulfillment costs without sacrificing service quality is essential. “Cost per order” measures the average cost to pick, pack, and ship a single order. When a 3PL promises low costs, it is essential to ask for a breakdown of what is included in their fees, how costs scale with volume, and which activities may trigger surcharges so there are no surprises as your business grows or needs change.

Top partners are able to track cost per order at a granular level, which provides opportunities to reduce waste, optimize labor, and negotiate carrier rates without sacrificing order accuracy and speed. Cost per order is calculated as:

Fulfillment costs include:

• Warehouse labor costs associated with receiving new inventory
• Cost to store and manage inventory over the course of a month (pallets, shelves, and bins being used to store items, and any technology fees for inventory management software)
• Warehouse labor costs for picking and packing orders
• The cost of the packaging being used (standard or custom/branded)
• The cost of kitting (if applicable)
• Costs associated with restocking or disposing of returned items
• Carrier rates for shipping packages to end customers

Typical Benchmarks:

• Industry acceptable: varies by order size/product type
• Strong 3PL: consistent and predictable within the Service Level Agreement (SLA)
• Best-in-class: identifies cost-saving opportunities without impacting service

At G10, we are committed to fair and transparent costs so sellers can scale confidently while maintaining their profit margins.

4. Inventory Accuracy

Maintaining accurate inventory helps prevent stockouts that delay shipments and excess stock of slow-moving products. Even small discrepancies between recorded and actual stock can disrupt the customer experience and erode trust. Many logistics companies make claims that they offer “99% inventory accuracy”, but what does that actually mean?

When choosing a 3PL, sellers should look for a company that tracks inventory at the SKU level in real time using barcode scanning and cycle counts. The 3PL should be performing regular cycle counts and annual or semi-annual inventory audits to count actual inventory on hand. They should also have a record of reconciling inventory errors immediately. Audits are the only true way to ensure that stock levels are reliable for both operational planning and shipping. Inventory accuracy is measured by:

Sources for capturing inventory accuracy include:

• Barcode scanning during receiving and picking
• Regular cycle counts
• Audits and exception reports
• Returns and reconciliations

Typical Benchmarks:

• Industry acceptable: 97%+
• Strong 3PL: 98.5%+
• Best-in-class: 99.5%+

At G10, we maintain accurate inventory by using a warehouse management system that tracks every inventory movement and scan-based workflows that support high pick accuracy. Our reporting and reconciliation tools also help verify physical inventory against system records so our team can quickly identify and resolve discrepancies.

5. Order Cycle Time

Order cycle time measures how long it takes from when an order is placed to when it is delivered. Shorter, consistent cycle times improve customer satisfaction and reduce cancellations. Do not settle for broad statements about “fast shipping” as it doesn’t mean anything without actual cycle time data.

Reliable logistics partners track order cycle time at both the order and line-item level, identifying delays from picking through carrier handoff to improve retail order fulfillment speed. Order cycle time is calculated by:

Order Cycle Time = (Delivery Date – Order Date) / Total Orders Shipped

Cycle time data is captured through:

• WMS timestamps
• Carrier pickup and delivery scans
• Order processing logs
• Exception and delay reports

Typical Benchmarks:

• Industry acceptable: depends on service level (2–5 days typical for e-commerce)
• Strong 3PL: consistent with SLA commitments
• Best-in-class: faster than promised while maintaining accuracy

At G10, we actively monitor order cycle time at both the order and line-item level, using real-time WMS data and carrier scans to identify and fix delays for overall orders and individual SKUS at each stage.

In summary, for e-commerce brands, these five KPIs are far more than a warehouse metric. Without them, it’s hard to know whether your 3PL provider is meeting its promises to you. Do not hesitate to ask your existing or potential 3PL partner for this data.

Veria Travel Case Study

Veria Travel’s CEO, Carolina Lozano, came to G10 looking for cost effective e-commerce fulfillment with proximity to their customer base. But more importantly, she was looking for a true logistics partner that offered transparent pricing, faster shipping, and local order tracking.

After a poor customer experience with Chinese 3PLs, she decided to move to a large U.S. based 3PL company for proximity to her customer base. But she quickly became frustrated by a lack of connection and rising costs. “You don’t feel any connection to your provider,” Carolina said, adding that the 3PL was “eating our profits.” Invoices included unexpected charges and “literally hidden fees,” leaving her confused and frustrated. What stood out most was the lack of transparency.

As Veria grew, those problems compounded. Volume requirements locked the company into rigid pricing structures. “Many 3PLs have different volume requirements at the beginning, which is a problem if you are a dynamic, growing company,” she shared. These poor experiences led her to look for a 3PL that was the right fit, not necessarily the largest or most well-known.

The Transition to G10

“When you have a good 3PL, a real team, you can focus on growth, on marketing, on optimizing the products,” she said. “That’s one of the reasons we decided to go with G10. We were looking for a combination of technology, human resources, and pricing. Pricing is number one, because if the cost doesn’t allow you to scale, something is broken.”

Carolina discovered G10 through an ad, but she made the decision to move her business after helpful discovery meetings centered on data, transparency, flexibility, and fair prices.

How G10 Delivered on the KPIs That Matter Most to Veria Travel

Veria Travel’s experience with G10 reflects strong performance across the five core logistics KPIs. From day one, G10 has provided 99.9% order accuracy, which protects Veria’s brand reputation. G10’s 99.9% expected ship date performance means Veria’s customers receive their orders promptly, meeting their expectations for fast shipping.

G10’s transparent and fair cost per order has addressed one of Veria’s biggest pain points – unexpected fees – which has allowed the brand to scale without eating into its margins. With real-time inventory tracking and regular reconciliation, Veria gained confidence in inventory accuracy as it prevented stockouts and fulfillment delays. Finally, by actively monitoring order cycle time using WMS timestamps and carrier scans, G10 has helped Veria maintain fast, consistent delivery as volume grows.

The way that G10 meets these KPIs for all our clients demonstrates how we operate not just as a fulfillment provider, but as a true logistics partner.

G10 Meets Customer Expectations Through Transparency and Accountability

G10 is dedicated to helping our partners deliver on their promise to customers for fast, accurate deliveries at a reasonable cost. In addition, G10 is committed to transparency on every level and providing exceptional customer service through our dedicated account managers and customer service team.

We provide real-time order tracking so customers can track their orders and real-time inventory levels to prevent stockouts and overstocking. We are upfront about all our fees, which means our sellers are never shocked by surprise charges on their monthly statements. When we say that we provide 99.9% order accuracy and expected ship date, we mean it. We promise to meet our standard for same-day shipping and are happy to share our methods with prospective and current clients.

Request a quote today.