If on-time delivery isn't the right metric, what should companies measure instead?

Maersk advocates for a shift toward metrics that capture reliability more holistically, including delivery consistency, predictability, and variance reduction. Rather than binary on-time/late measures, companies should evaluate how reliably carriers maintain service windows and how much variation exists in actual delivery times—metrics that better reflect operational value and customer satisfaction.

How does this metric redefinition affect carrier selection and vendor management?

By expanding the definition of reliability beyond on-time performance, shippers can better differentiate carriers based on operational consistency and predictability. This allows for more nuanced vendor scorecards that reward carriers for reducing variance and maintaining stable service levels rather than simply optimizing for a single time window, potentially reducing overall supply chain risk.

What operational changes should ground freight teams implement based on this perspective?

Supply chain teams should audit current KPI frameworks and service level agreements (SLAs) to identify over-reliance on on-time metrics. Consider implementing tracking systems that measure delivery window consistency, lead time variance, and predictability alongside traditional on-time percentages. This may require renegotiating contracts with carriers to align incentives with broader reliability goals.

Does this apply to all industries or just certain sectors?

The principle of moving beyond on-time metrics has broad applicability, but its urgency varies by industry. Time-sensitive sectors (pharma, perishables, automotive) may prioritize consistency over strict windows, while others may benefit from predictability-focused metrics that reduce inventory safety stock and improve demand planning accuracy.

How can companies measure 'reliability' if not by on-time delivery?

Maersk's framework suggests tracking metrics such as on-time percentage within a specific window, delivery window variance (standard deviation of actual vs. promised times), and delivery reliability indices that penalize both lateness and inconsistency. Advanced analytics can also incorporate customer impact assessments that weight late deliveries by their operational consequence rather than treating all delays equally.

Shipping & Freight

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Beyond On-Time: Redefining Ground Freight Reliability Metrics

Apr 30, 2026

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Maersk challenges the industry's reliance on 'on-time' as the primary metric for measuring ground freight reliability, arguing that this narrow focus may not capture the full picture of service quality and operational performance. The company suggests that a more comprehensive approach to measuring reliability is needed—one that accounts for consistency, predictability, and actual business impact rather than simply meeting promised delivery windows.

This shift in perspective matters significantly for supply chain professionals because it highlights a fundamental tension in logistics optimization: hitting arbitrary time windows may not align with customer needs or operational efficiency. By broadening the definition of reliability, shippers can make more informed decisions about service level tradeoffs, capacity planning, and carrier selection.

For operations teams, this represents an opportunity to recalibrate performance scorecards and key performance indicators (KPIs) to focus on metrics that drive real business value—such as delivery consistency, variance reduction, and predictability—rather than chasing a single point-in-time target that may not reflect true service quality.

#on-time-delivery

#ground-freight

#supply-chain-metrics

#logistics-performance

#reliability

#service-levels

#freight-management

#operational-excellence

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What This Means for Your Supply Chain

Simulation Suggestion

this month

What if we shift vendor KPIs from on-time % to delivery consistency metrics?

Model the impact of redefining ground freight carrier performance scorecards to prioritize delivery consistency (low variance) and predictability over binary on-time achievement. Compare current cost structures and service levels under a new KPI regime that rewards carriers for maintaining tight delivery windows with minimal variance, versus the existing on-time bonus structure.

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What if we segment carriers by reliability profile rather than on-time percentage?

Model a carrier segmentation strategy that groups ground freight providers by their delivery consistency and predictability profiles, rather than aggregate on-time achievement rates. Simulate freight allocation to carriers based on new reliability segments and measure cost, service level, and risk implications across different shipment types.

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Simulation Suggestion

this month

What if reduced delivery variance allows lower safety stock in downstream warehouses?

Simulate the inventory optimization impact of improved delivery predictability across the ground freight network. If carrier variance decreases (tighter, more consistent delivery windows), model the reduction in safety stock required at distribution centers and retail locations, accounting for improved demand planning accuracy.

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