Distribution key performance indicators (KPIs) measure whether you deliver on time, in full, at a defensible cost, with a trip file accounts payable can pay. For a Mexico–US shipper or logistics operator, five last-mile beverage metrics are not enough: you need service, cost, control, and cash on the same board.
This guide defines formulas with correct units (fixing the common kg/km mix-up), OTIF (On Time In Full) without inflation, drop size, volatility for fleet vs 3PL, and the freight-finance KPIs thin methodology posts skip. OCL Cargo is an autonomous TMS with agents: it closes status, proof of delivery (POD), and pre-pay audit without selling another vanity dashboard. When you audit 100% of the pilot flow, the typical pattern is recovering 5–7% of freight spend.
- service · cost · control · cash
- 4 groups
- delivery fill rate (National Study 2026 sample)
- ~93%
- OTIF = on time and in full (not an average)
- AND
- pattern when auditing 100% of the pilot
- 5–7%
Cluster context: distribution costs · what OTIF is · what a logistics KPI is · 7 freight money leaks.
What distribution KPIs are (short answer)
A distribution key performance indicator (KPI) is an operable metric for the stretch from the distribution center (DC) or plant to the customer: punctuality, completeness, route density, cost, and document quality. It is not “everything that fits on a logistics PowerPoint.”
On Mexico–US lanes the same trip mixes DC appointments, border or transfer, GPS, Mexico’s digital tax invoice (CFDI), Carta Porte, and POD. A service KPI without those inputs cannot release payment or renegotiate a carrier.
Competitors often list five capillary delivery indicators or generic service/cost/control buckets and close with the vendor dashboard. The axis here is the shipper/3PL decision: what to measure, with which formula, and what to do on Monday.
Four groups: service, cost, control, and cash
Group before you saturate the board. A service / cost / cash / control taxonomy works if every cell has an owner. We call out cash explicitly because in Mexican freight margin often dies after delivery.
Service
Question it answers: Did we keep the customer promise?
Example KPIs: OTIF, OTD, fill rate, % appointments hit
Cost
Question it answers: What does it cost to serve this lane?
Example KPIs: MXN/km, MXN/stop, drop size, km/stop, % empty miles
Control
Question it answers: Do we see and act in time?
Example KPIs: Useful GPS coverage, time to first action, % digital POD
Cash
Question it answers: Can we pay (or hold) with evidence?
Example KPIs: % complete trip file, % invoices audited pre-pay, detention, accessorials, chargebacks
For the peso side of the board, read distribution costs and cost-to-serve. For flow wastes: lean supply chain in freight.
Corrected formulas (units that actually add up)
This is the cut versus viral “5 indicators” lists. The ideas are right; the units often are not. Do not copy a “99% world-class” sticker onto km per stop — it has no physical meaning.
On-time effectiveness (OTD in weight or orders)
Correct formula: kg (or orders) delivered on time ÷ kg (or orders) scheduled
Typical mistake to avoid: Publishing a % without defining kg vs orders vs stops
Route efficiency (distance)
Correct formula: km driven ÷ number of deliveries (= km/stop)
Typical mistake to avoid: Putting kg in the denominator or calling drop size “efficiency”
Load density
Correct formula: kg hauled ÷ km driven (= kg/km)
Typical mistake to avoid: Confusing density with service effectiveness
Drop size
Correct formula: total kg delivered ÷ number of deliveries (stops)
Typical mistake to avoid: Optimizing drop size without watching OTIF or cost per visit
OTIF
Correct formula: orders on time AND in full ÷ total orders
Typical mistake to avoid: Averaging OTD and fill rate, or counting “almost full” as success
Volatility (CV)
Correct formula: std. dev. of daily dispatch ÷ period average
Typical mistake to avoid: Using CV without fixing the unit (kg/day vs trips/day) or horizon
OTIF, OTD, and fill rate: do not mix them
OTIF (On Time In Full) only counts the order that arrives on time and complete. It is an AND, not an average. OTD (On Time Delivery) watches the window. Fill rate watches pieces or kg shipped vs ordered.
| KPI | Measures | What you miss if you only watch this |
|---|---|---|
| OTD / on time | Punctuality vs window/appointment | Incomplete orders that “arrived on time” |
| Fill rate / completeness | Quantity shipped vs ordered | Late but complete deliveries |
| OTIF | Punctuality AND completeness | Neither half — it requires both |
Operable definition and industry benchmarks: OTIF glossary · fill rate · OTD. Evidence convention: POD guide for shippers.
Drop size, density, and km per stop
Drop size answers: how much weight (or volume) do you leave at each stop? Km per stop answers: how capillary is the route? Together they explain whether cost per delivery rises from small visits, dead kilometers, or both.
- High drop size in industrial B2B usually lowers cost per kg, but does not forgive OTIF if the DC rejects freight or POD is missing.
- High km/stop signals thin routes or bad sequencing — do not “fix” it by inflating the service KPI.
- Kg/km is load density: useful in FTL/LTL, different from drop size.
On a Mexico–Laredo lane (or your equivalent), measure by lane and customer — not only the national average. Averages hide the lane that breaks you.
Dispatch volatility and fleet vs 3PL
Coefficient of variation (CV) = standard deviation ÷ average daily dispatch (kg or trips — pick one and do not change mid-quarter). It informs owned capacity vs outsourced capacity; it is not report decoration.
Low CV + stable volume
Read: Predictable demand
Typical lever: Private fleet or dedicated contract can pay if utilization clears the threshold
High CV + peaks
Read: Rigid capacity overshoots or undershoots
Typical lever: 3PL / spot with SLA and trip file — not a WhatsApp promise
High CV + low OTIF
Read: Erratic volume + broken promise
Typical lever: Before buying tractors: appointments, lead time, tender rules
Freight-finance KPIs dashboards usually omit
This is the wedge versus last-mile posts: money leaks in the trip file and in lines that were never “base freight.” Without these KPIs, pretty service coexists with broken margin.
% trips with complete file
Operable formula: trips with rate+CFDI+Carta Porte+GPS+POD ÷ total trips
Why it matters: No file to no defensible payment
% invoices audited pre-pay
Operable formula: invoices fully matched before release ÷ period invoices
Why it matters: 5–7% pattern when you leave sampling
Cost per km / per stop
Operable formula: MXN freight (+audited accessorials) ÷ km or ÷ stops
Why it matters: Compare lanes and carriers with the same basket
Detention (hours or MXN)
Operable formula: hours over free time × rate; or detention line MXN
Why it matters: Cut real hours and stop paying invented ones
Accessorials % of freight
Operable formula: MXN accessorials ÷ MXN base freight
Why it matters: Detects lumping, FSC, redelivery inflation
DC chargebacks / deductions
Operable formula: MXN deducted by retailer ÷ sales or ÷ DC deliveries
Why it matters: “OK” OTIF with margin destroyed after delivery
Playbooks: CFDI + Carta Porte + GPS + POD audit · detention · 7 leaks · lumper / DC handling.
Worked example (MXN / kg / km)
Illustrative numbers for one regional delivery day (calibrate to your operation). Not a published client benchmark.
| Input | Value | KPI it feeds |
|---|---|---|
| Kg scheduled | 12,000 kg | OTD / effectiveness denominator |
| Kg delivered on time | 11,160 kg | Weight OTD = 11,160÷12,000 = 93% |
| Total orders | 40 | OTIF denominator |
| Orders on time and in full | 34 | OTIF = 34÷40 = 85% |
| Deliveries (stops) | 40 | Drop size and km/stop |
| Kg delivered | 11,400 kg | Drop size = 11,400÷40 = 285 kg/stop |
| Km driven | 480 km | Km/stop = 480÷40 = 12 km/stop |
| Freight + audited accessorials | $28,800 MXN | MXN/km = 60; MXN/stop = 720 |
If someone reported “93% efficiency” using km/stop, they invented a percentage where there are only 12 km per stop. Unit hygiene is not pedantry — it stops leadership self-deception.
Honest targets by lane and SLA
Do not copy a vendor-slide “99% world-class.” Set the threshold in the customer or lane service-level agreement (SLA), then compare to industry averages.
Retail / CPG into DC
Indicative range: OTIF 95–98% required in many SLAs
Note: 99% is aspirational; chargebacks punish “almost”
Industrial B2B / manufacturing
Indicative range: OTIF 90–95% typically healthy
Note: Below ~88–90% often means lost slots
Delivery fill rate (MX context)
Indicative range: ~93% average in National Study 2026 sample
Note: Market context; does not replace your SLA
% complete trip file (pilot)
Indicative range: Drive toward 100% of the pilot universe
Note: Cash goal, not vanity service
% invoices audited pre-pay
Indicative range: 100% of the pilot flow (no sampling)
Note: Typical recovery pattern: 5–7% of audited spend
Which KPI for which decision
A board without a decision map is decoration. Use this matrix on Monday with operations and accounts payable.
| Decision | Primary KPI | Support KPI |
|---|---|---|
| Owned fleet vs 3PL on this lane? | Dispatch CV + utilization | OTIF, MXN/km, % trip file |
| Raise drop size (fewer visits)? | Drop size + OTIF | Km/stop, chargebacks |
| Is the route too capillary? | Km/stop + MXN/stop | Drop size, % empty |
| Carrier A vs B? | OTIF + % POD on time | Audited MXN/km, exceptions |
| Release or hold payment? | % complete trip file | GPS vs appointment, accessorials |
| Is the DC bleeding us? | Chargebacks + detention | OTIF, % appointments, lumper |
| Is this fake digitization? | % statuses re-keyed by hand | Time to useful alert |
How to instrument: GPS + POD + TMS
The KPI does not live in eternal Excel. It lives in three evidence layers: location (GPS or mirror account), proof of delivery (POD) tied to the ID, and a transportation management system (TMS) with typed status. Agents can update status; your team enter on exceptions.
Instrumentation
From event to number
Register
Trip and SLA
Locate
GPS or mirror
Close POD
Tied to trip ID
Audit
Before paying
Monitoring depth: real-time logistics monitoring. TMS definition: what a TMS is in Mexico. Human bridge: fake digitization.
Checklist: minimum operable dashboard
Start with one lane and one customer. If you cannot check the first five boxes, you do not need twenty KPIs yet — you need data.
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Detalle del paso · 01
Freeze definitions
Step 1
What OCL runs without dashboard theater
OCL Cargo does not sell “another KPI dashboard” as the thesis. It executes the work that makes the KPI true: exception tracking, POD tied to the trip, and pre-pay match of rate, CFDI, Carta Porte, GPS, and POD. It coexists with your TMS and GPS; no day-one migration.
Work done
From trip to cash
Track
Typed exception
Tie POD
To trip ID
Audit
100% of pilot
Decide
Pay or hold
Stack comparison: traditional TMS vs OCL.
Key takeaways5 points
- A distribution KPI needs a formula, a unit, an owner, and a threshold that triggers a decision — not a “99% world-class” slide.
- Fix units: on-time effectiveness can be kg or orders; route efficiency is km/stop (or MXN/km); drop size is kg/stop. Do not mix them.
- OTIF is AND (on time and in full). Keep it separate from OTD and fill rate; the 2026 National Study cites ~93% average delivery fill rate in its sample — calibrate to your SLA.
- The Mexico–US wedge adds cash KPIs: % complete trip file, % invoices audited pre-pay, detention, accessorials, and DC chargebacks.
- Instrument with GPS + POD + TMS; agents update status, your team on exceptions. Without evidence, the KPI cannot defend payment.
Does your distribution board measure service… and forget cash?
Related reading
- What a logistics KPI is
- OTIF · OTD · fill rate · perfect order
- Drop size · km per delivery · load density
- Dispatch volatility (CV) · appointment compliance · time to first action
- Cost per delivery / km · empty miles · distribution costs
- Complete shipment file (KPI) · DC chargeback · detention · accessorials
- Freight invoice audit CFDI + Carta Porte + GPS + POD
- POD convention for shippers
- Real-time logistics monitoring
- Lead time · Fake digitization
Frequently asked questions
For a Mexico–US shipper or 3PL: OTIF (On Time In Full), on-time delivery (OTD), drop size, km per stop (not “efficiency” in kg), cost per km and per delivery, % complete trip file, % invoices audited before pay, detention, accessorials, and dispatch volatility (coefficient of variation). The minimum dashboard is the one that triggers a decision.
In distance and cost — do not mix units. Operating route efficiency ≈ kilometers driven ÷ number of deliveries (km/stop). Load density ≈ kg ÷ km. If someone publishes “kg/stop” as route efficiency and stamps a 99% target on it, they mixed drop size with mileage.
It is aspirational for retail into a DC with a strict SLA — not a universal standard. Retail/CPG often requires 95–98%; industrial B2B often runs 90–95%. The target is set by the lane SLA. The 4th National Logistics Indicators Study 2026 reports ~93% average customer delivery fill rate in its sample — useful context, not your blind target.
No. OTD measures punctuality. Fill rate measures completeness (pieces/kg shipped vs ordered). OTIF requires both: on time AND in full (logical AND). Reporting “OT or IF” as OTIF inflates the number.
The coefficient of variation (standard deviation ÷ average daily kg or trips) measures how erratic volume is. High volatility + rigid private fleet often destroys utilization; high volatility favors variable capacity (3PL) if the trip file and SLA are clear.
GPS (or mirror account) + proof of delivery (POD) tied to the trip ID + transportation management system (TMS) with typed status. Agents update status; your team handles exceptions. Without POD and a trip file, the service KPI cannot defend payment.
Not on day one. OCL is an autonomous TMS with agents that operate screens and portals: it runs tracking, POD, and pre-pay audit on top of or beside your system of record. Typical pilot: 6–8 weeks; 5–7% pattern when auditing 100% of the pilot flow.