# Key Performance Indicator

*Last updated: 2026-06-26*

> Freight forwarders, logistics providers, and procurement teams use Key Performance Indicators (KPIs) to measure whether their operations meet defined targets.

Freight forwarders, logistics providers, and procurement teams use Key Performance Indicators (KPIs) to measure whether their operations meet defined targets. A KPI is a quantifiable metric tied to a specific objective – such as on-time delivery rate, average transit time, cost per shipment, or inventory turnover. In supply chain management, KPIs serve as the factual basis for identifying inefficiencies and steering process improvement. By nature they are retrospective, documenting achieved performance rather than forecasting future outcomes. This distinguishes them from Key Risk Indicators (KRIs), which flag emerging threats before they materialise.

**Source:** [https://www.investopedia.com/terms/k/key-performance-indicator.asp](https://www.investopedia.com/terms/k/key-performance-indicator.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | Key Performance Indicator |
| Language | EN |
| Word count | 91 |
| Last updated | 2026-06-26 |
| Source | https://www.investopedia.com/terms/k/key-performance-indicator.asp |

---

*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/key-performance-indicator](https://www.freight-academy.com/en/glossary/key-performance-indicator)*

*Markdown mirror: [https://www.freight-academy.com/api/md/glossary/en/key-performance-indicator](https://www.freight-academy.com/api/md/glossary/en/key-performance-indicator)*

*JSON summary: [https://www.freight-academy.com/api/v1/glossary/key-performance-indicator/llm-summary?lang=en](https://www.freight-academy.com/api/v1/glossary/key-performance-indicator/llm-summary?lang=en)*