For distributors in the building materials industry, multi-modal freight has become an essential strategy for reaching diverse markets efficiently. Combining trucking, rail, sea, and even air transport can reduce costs and improve reach—but it also increases complexity.
With more hand-offs, partners, and transit points, multi-modal shipping presents unique challenges: delays, miscommunication, damage risks, and visibility gaps. To manage these challenges effectively, you need the right Key Performance Indicators (KPIs) to track performance across every mode and stage of delivery.
Here’s a breakdown of the most important KPIs to monitor for effective multi-modal freight management, and how they help you control cost, minimize risk, and maintain contractor satisfaction.
- On-Time Delivery Rate (OTD)
Why it matters:
This is the cornerstone KPI. Multi-modal freight often involves tight coordination between transport legs. Delays at any point can disrupt your promise to customers.
What to track:
Percentage of deliveries that arrive on or before the scheduled time
Breakdown by mode (truck, rail, ocean) and region
Variance from expected vs. actual ETA
How to use it:
Identify consistent delays tied to specific legs or partners and implement route or carrier changes as needed.
- In-Transit Visibility Rate
Why it matters:
Multi-modal freight can create visibility “blackouts” between legs. Without real-time data, your team can’t proactively manage exceptions.
What to track:
% of shipments with live tracking across all modes
Time intervals with no location updates
Frequency of missed or delayed status reports
How to use it:
Work with 3PLs and carriers to close tracking gaps and integrate systems for seamless real-time updates.
- Transfer Point Dwell Time
Why it matters:
Every handoff between modes—such as from port to rail or rail to truck—introduces potential delays.
What to track:
Average time shipments spend at transfer points
Dwell time by location or terminal
Causes of delay (customs, scheduling, documentation)
How to use it:
Optimize hand-off coordination and documentation workflows to reduce idle time and speed up transitions.
- Damage or Loss Rate
Why it matters:
Construction materials are often heavy, irregular, and sensitive. Multiple handoffs increase the risk of damage or loss.
What to track:
% of shipments reported damaged or missing upon delivery
Damage by mode or specific carrier
Cost of claims filed and resolved
How to use it:
Improve packaging, staging, and handling protocols—especially at vulnerable points like depots or ports.
- Mode-Specific Cost per Mile or per Shipment
Why it matters:
One of the main benefits of multi-modal freight is cost efficiency—but only if you’re actively monitoring it.
What to track:
Cost per mile by mode (truck, rail, ocean, air)
Cost per delivery from origin to final site
Cost overruns due to re-routing or delays
How to use it:
Evaluate the ROI of each freight mode and rebalance your network to reduce high-cost routes.
- Exception Rate
Why it matters:
Exceptions—anything outside of normal delivery parameters—create the bulk of disruptions and labor costs.
What to track:
% of shipments flagged for issues (delays, re-routes, damage, etc.)
Root cause analysis (e.g., carrier issue, customs delay, weather event)
Response time to resolve each exception
How to use it:
Spot patterns and build contingency plans. Improve SOPs for common exceptions across freight legs.
- Carrier or Partner Performance Score
Why it matters:
Multi-modal freight success depends heavily on 3PLs and carrier partners. Monitoring their performance is essential.
What to include in the scorecard:
On-time pickup/delivery
Accuracy of documentation
Communication responsiveness
Claims ratio
Compliance with routing instructions
How to use it:
Use performance data to renegotiate contracts, adjust volume allocation, or replace underperforming partners.
- Order Cycle Time (End-to-End)
Why it matters:
This KPI captures the full picture—how long it takes from order placement to job site delivery.
What to track:
Average cycle time by lane or route
Time spent in each freight mode
Variability in order fulfillment timelines
How to use it:
Set realistic expectations for contractors and identify where process changes can compress delivery timeframes.
Final Thoughts
Multi-modal freight is the future of efficient distribution in the construction materials sector—but it requires more than just logistics partnerships. It demands precision tracking, cross-mode visibility, and performance accountability.
By consistently monitoring the right KPIs, distributors can gain control over a complex supply chain, reduce risk, and deliver with confidence—even across multiple transport modes.
