Freight Performance Metrics: Tracking Freight Success

March 3 2025
Customised Freight Solutions

Measuring performance is crucial to improving your freight operations. Freight performance metrics provide valuable insights into the efficiency, reliability, and overall success of your logistics strategy.

From DIFOT (Delivery In Full, On Time) to advanced analytics, these metrics go beyond basic tracking to highlight areas for optimisation and help businesses meet customer expectations.

DIFOT: The Cornerstone of Freight Metrics

What It Is: DIFOT (Delivery In Full, On Time) measures whether shipments are delivered completely and on schedule.

Why It Matters: This metric reflects carrier reliability and service quality, helping businesses gauge whether they’re meeting customer expectations.

Example Insight: A DIFOT score of 95% indicates that 95 out of 100 deliveries were made in full and on time, a critical indicator of operational efficiency.

Transit Time

What It Is: The time it takes for freight to move from pickup to delivery.

Why It Matters: Monitoring transit time helps businesses identify inefficiencies, optimise routes, and compare carrier performance.

Pro Tip: Regularly review transit times to ensure you’re not overpaying for slower services.

Freight Costs per Unit

What It Is: The cost of shipping per unit of freight (e.g., per kilogram, pallet, or container).

Why It Matters: This metric allows businesses to track spending trends, identify cost-saving opportunities, and allocate budgets effectively.

Pro Tip: Benchmark costs across different carriers and freight modes to find the most economical options.

On-Time Pickup Rate

What It Is: The percentage of shipments picked up on time by carriers.

Why It Matters: Delays at the pickup stage can cascade into the delivery process, affecting customer satisfaction and operational timelines.

Example Insight: A consistent on-time pickup rate ensures smoother workflows and reliable scheduling.

Damaged Goods Rate

What It Is: The percentage of shipments arriving with damage.

Why It Matters: A high damaged goods rate signals issues in handling, packaging, or transport conditions, potentially leading to customer dissatisfaction and increased costs.

Pro Tip: Partner with a track record of careful handling and invest in secure packaging solutions.

Freight Utilisation Rate

What It Is: The percentage of vehicle or container space utilised per shipment.

Why It Matters: Maximising space reduces wasted resources and improves cost-efficiency.

Pro Tip: Consolidate shipments and optimise load planning to improve utilisation rates.

Carbon Emissions per Shipment

What It Is: The environmental impact of freight measured in CO₂ emissions per shipment.

Why It Matters: Tracking this metric supports sustainability goals and can reduce costs by promoting eco-friendly practices like route optimisation.

Example Insight: Businesses with lower emissions can appeal to eco-conscious customers and gain a competitive edge.

Proof of Delivery (POD) Success Rate

What It Is: The percentage of shipments successfully delivered with a confirmed Proof of Delivery.

Why It Matters: This metric validates delivery accuracy and ensures transparency with customers.

Pro Tip: Use digital POD systems to streamline tracking and reporting.

Return Rates

What It Is: The percentage of shipments returned due to issues such as incorrect addresses or failed deliveries.

Why It Matters: High return rates can highlight inefficiencies in address verification or customer communication, leading to wasted resources.

Pro Tip: Implement address validation tools and improve customer communication to reduce returns.

Freight performance metrics like DIFOT, transit time, and freight costs per unit provide essential insights into your logistics operations. By regularly tracking and analysing these metrics, businesses can optimise their freight strategies, reduce costs, and improve customer satisfaction.

Ready to future-proof your freight supply chain? Contact our team to explore strategies tailored to your business needs.