Carriers and Services

Carrier Performance Scorecards: Comparing On-Time Rates

How to build carrier scorecards with consistent measures such as on-time rate, damage, claims and exceptions, so you can compare carriers fairly over time.

On this page
  1. Why a scorecard helps
  2. Choose a small set of measures
  3. Define on-time carefully
  4. Where the data comes from
  5. Make comparisons fair
  6. Layout and thresholds
  7. Turning results into action

Why a scorecard helps

Impressions of a carrier tend to be shaped by the last bad week. A scorecard replaces that with a regular, consistent record of how each carrier performed against the same measures. It does not need to be elaborate: a spreadsheet updated monthly is enough to start. What matters is that every carrier is measured the same way, over the same period, on the same kinds of shipments.

A scorecard is useful in three situations: when deciding whether to keep a carrier, when preparing for a contract discussion, and when working out how to divide volume between providers.

Choose a small set of measures

Resist the urge to track everything. A handful of well-defined measures is more useful than twenty that nobody reads. Common choices are:

  • On-time delivery rate. The share of parcels delivered by the promised date.
  • First-attempt delivery rate. The share delivered on the first try, which links closely to customer satisfaction and to the cost of repeat attempts.
  • Damage rate. Parcels reported damaged as a share of parcels shipped.
  • Loss rate. Parcels that never arrive, again as a share of those shipped.
  • Tracking quality. Whether scans arrive in a sensible order and without long silent gaps.
  • Claims handling. How long a claim takes to resolve and how often it is accepted.
  • Billing accuracy. How often invoices contain corrections or disputed charges.

You may also want to record customer contacts about delivery, since “where is my parcel” messages are a real cost even when the parcel eventually arrives.

Define on-time carefully

On-time rate looks simple but hides several decisions, and different definitions can give quite different numbers for the same carrier.

First, decide what the clock measures. Counting from the date the parcel was handed to the carrier is different from counting from the date your customer ordered. The first isolates the carrier’s performance, while the second includes your own handling time.

Second, decide which promise you compare against. A parcel sent on a slower service should be measured against that service’s stated transit time, not against next-day delivery. Comparing a ground service with an express service on one scale will make the slower one look worse for no useful reason. Each carrier’s own service levels set the promise you should hold it to.

Third, decide how to treat days when delivery is impossible, such as weekends, public holidays, or severe weather delays. Whatever rule you choose, apply it to every carrier. Likewise, decide whether a customer-caused delay, such as a wrong address, counts against the carrier. Many businesses exclude cases traced to address errors and track them separately.

Write the definitions down at the top of the scorecard. A comparison between two carriers is only meaningful if the definitions are identical.

Where the data comes from

You have three main sources:

  1. Carrier reports. Many carriers supply performance summaries. They are convenient, but they use the carrier’s own definitions and may exclude certain exceptions.
  2. Tracking data. Scan events, pulled through carrier tracking feeds or your shipping software, let you calculate delivery dates yourself from the same rules for every carrier.
  3. Your own records. Customer complaints, claims and returns show what the tracking data misses, such as a parcel marked delivered that the customer never received.

Calculating the numbers yourself from tracking data is usually the fairest approach, as it removes the question of whose definition is in use. If your volume is small, even a sample of shipments each month can reveal patterns.

Make comparisons fair

Raw averages can mislead. A carrier that mostly delivers short-distance urban parcels will usually look better than one handling remote rural routes, even if the second is doing a good job. To compare like with like:

  • Break results down by zone, region or service type, not just a single total.
  • Compare the same time periods, because performance often dips in peak season when seasonal demand strains every network.
  • Pay attention to sample size. A rate based on forty parcels moves a lot with a single late delivery, so look at trends over several months rather than one figure.
  • Look at the spread as well as the average. A carrier that is usually on time but occasionally very late may cause more trouble than one that is steadily one day slower.

Layout and thresholds

A readable scorecard has one row per carrier and service, one column per measure, and a column for the period. Add a target for each measure, agreed in advance, so that a result is clearly above or below expectations. Targets should be realistic for your own routes, not copied from a general figure you found elsewhere.

Some teams combine the measures into a single weighted score. That can help with ranking, but it can also hide the cause of a problem, so keep the underlying measures visible alongside any overall score.

Turning results into action

A scorecard is only worth the effort if it leads to decisions. If a carrier falls below target, raise it with your account contact using specific shipments as examples. If the pattern continues, you might shift some volume elsewhere, which is where multi-carrier shipping comes in, or use the results during contract renegotiation. Equally, good results are worth acknowledging and can support a case for better terms.

Review the scorecard on a regular schedule, such as monthly for the numbers and quarterly for the bigger conversations. Over time, you build a history that makes the next carrier decision far less dependent on guesswork.

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