7 Logistics KPIs Your Nigerian Business Must Track

Management consultant, Peter Drucker, once said, "What gets measured, gets managed."

While this is true for many businesses, when it comes to logistics in Nigeria, too many founders are flying blind. You might know how many deliveries you did last month, but do you know what each one truly cost you? You might feel like your service is fast, but do you have the hard data to prove it and improve upon it?

To build a truly efficient and profitable operation, you need to track the Key Performance Indicators (KPIs) that reveal the true health of your logistics engine. These logistics KPIs will help you improve your logistics process as the need arises, and this guide will show you which ones matter most.

Why Good Service Isn't a Metric

"Good service" is a goal, not a metric. It's a subjective feeling. In contrast, logistics KPIs are the objective, data-driven facts that tell you exactly how you are performing.

They replace assumptions with certainty and empower you to make strategic decisions that directly impact your bottom line. They are the core of any serious logistics data analytics effort.

The 7 Essential Logistics KPIs to Track

Start tracking these seven logistics metrics, and you'll gain a level of insight into your business you never thought possible.

1. On-Time In-Full (OTIF)

This is the gold standard of delivery performance. It measures the percentage of orders that arrive exactly as promised: on time, with all the correct items, and in perfect condition.

• Why it Matters: A low OTIF score is a direct indicator of problems somewhere in your supply chain—whether it’s in your warehouse, with your drivers, or from poor inventory management. Improving your OTIF score leads directly to higher customer satisfaction.

2. Cost Per Delivery

This is arguably the most important financial metric for any logistics operation. It calculates the total, all-inclusive cost to fulfill a single customer order.

• Formula: Total Monthly Logistics Costs (fuel, driver salaries, vehicle maintenance, software fees) ÷ Total Number of Successful Deliveries
• Why it Matters: In a market with fluctuating fuel prices and operating costs, knowing your Cost Per Delivery is vital for setting profitable shipping fees and understanding your true margins. It's the first number to look at when conducting a logistics audit.

3. Vehicle Utilization Rate

Your vehicles are expensive assets. This KPI measures how effectively you are using them.

• Why it Matters: A low utilization rate means your vehicles are sitting idle, costing you money without generating revenue. Improving this metric, by optimizing routes to fit more deliveries in a day or reducing maintenance downtime, has a direct impact on your ROI. Effective fleet management is all about maximizing this number.

4. Order Accuracy Rate

This measures the percentage of orders that are picked, packed, and dispatched without any errors from your end.

A low score here indicates warehousing or order processing problems. Every wrong order causes a costly return and a disappointed customer. Fixing this is a quick win for improving profitability.

5. Average Last-Mile Delivery Time

This KPI tracks the time from when an order leaves your facility to the moment it reaches the customer's doorstep.

• Why it Matters: This is the most visible part of the delivery journey for the customer. Reducing this time is a powerful competitive advantage. Tracking this metric also helps you understand how external factors, like the challenges of rainy season delivery, impact your performance.

6. Perfect Order Percentage (POP)

This is the strictest of all delivery metrics. It measures the percentage of orders that are flawless from start to finish.

• Why it Matters: While achieving 100% is nearly impossible, striving for a high POP forces you to optimize your entire process, not just one part of it. It’s the ultimate measure of your operational excellence.

7. Driver Performance Score

This isn't one metric but a collection of data points (speeding events, harsh braking, idle time) compiled into a single score.

• Why it Matters: Driver behaviour is a massive factor in fuel costs and vehicle health. A data-driven score allows you to identify your best drivers and coach those who need improvement, a core function of a modern driver management solution.

How Do You Track These KPIs?

Reading this list, you might be thinking, "This is great, but how could I possibly calculate all of this?"

Trying to track these logistics KPIs with spreadsheets and manual data entry is a full-time job in itself. It’s slow, prone to errors, and the data is always out of date.

To effectively monitor these metrics, you need a single source of truth.

Stop Guessing, Start Knowing

The businesses that win in the next decade will be the ones that know their numbers inside and out. And you can be one of them, too.

Ready to see your most important logistics KPIs on one simple dashboard?

Schedule a free demo of Dellioo and discover how our platform automatically tracks these critical metrics, giving you the business intelligence you need to grow.