Most disputes about courier performance come from a single problem: nobody agreed on what "on time" meant. A service level agreement (SLA) is the written answer, and the key performance indicators (KPIs) are how you check it. This guide shows how to define on time precisely, which measures are worth tracking, what a short SLA should contain, and what to do when a courier misses. It is written for the person who books and manages courier work, whether for a clinic, law firm, or maintenance shop.
Start by Defining "On Time"
"On time" has at least four possible meanings, and each produces a different number:
- Arrived by the deadline. The shipment reached the address before the stated time.
- Delivered inside the window. It arrived between the start and end of an agreed delivery window.
- Picked up on time. The driver reached the pickup address inside the pickup window. Late pickups cause most late deliveries.
- Handed over to the right person. A delivery to a front desk may not count if the order was to hand it to a named recipient.
Write down which one you mean, and which clock is used: the courier's system, the recipient's signature time, or a scan. For the thinking behind urgent work, see what time-critical means.
Six KPIs Worth Tracking
| KPI | What it measures | How to calculate it |
|---|---|---|
| On-time pickup rate | Whether the driver arrived within the pickup window | Pickups on time divided by total pickups |
| On-time delivery rate | Whether the shipment arrived within the agreed window | Deliveries on time divided by total deliveries |
| First-attempt success rate | How often delivery succeeded on the first try | First-attempt deliveries divided by total deliveries |
| Exception notification time | How quickly you were told about a delay or problem | Minutes between the courier learning of the problem and telling you |
| Proof-of-delivery turnaround | How quickly the delivery record reaches you | Time from delivery to POD received |
| Claims rate | How often shipments were lost or damaged | Claims divided by total shipments |
Pick three or four, not all six. A measure nobody reviews is noise.
What the Numbers Mean in Practice
Percentages hide how many late deliveries you actually live with. Suppose you send 200 deliveries a month. A 95% on-time rate means 10 are late; a 99% rate means 2 are late. The gap between those two figures is eight deliveries, and for work such as specimens, court filings, or aircraft parts, each one can matter. Track the count of late deliveries alongside the percentage, and track which ones were late: a pattern of late afternoon deliveries to one address is fixable, while random lateness is harder to address.
Eight Things a Short SLA Should Say
- The service levels offered and the exact time definitions for each.
- The pickup and delivery windows, and how they are confirmed.
- How and when the courier must report delays.
- What proof of delivery is captured, and when you receive it.
- What counts as a failed attempt, and who bears the cost of redelivery.
- Declared value, liability limits, and how claims are made. See insurance and liability.
- Which events are excluded, such as severe weather or road closures, and how they are verified.
- The review schedule and what happens if targets are repeatedly missed.
A one-page SLA that both sides read is more useful than a long contract that nobody does. Be wary of an SLA that promises a percentage without defining on time, because it cannot be measured.
Running a Monthly Review
Once a month, take ten minutes to check the three or four KPIs you chose. Look at the late deliveries individually, ask the courier to explain each, and agree on one change to make. If you have a dedicated arrangement, the review can be short because the same people are involved each time. If you use a shared route, check whether the late ones fell on busy days. Our dedicated vs shared guide explains how the models differ.
Have a Backup Before You Need One
Even a good courier will sometimes have a vehicle fail, a driver fall ill, or a storm close a road. For work where a miss is costly, set up contingency in advance: ask what the courier does if a driver is unavailable, whether a second vehicle can be dispatched, and how quickly you will be told. Consider keeping a secondary provider for the most critical routes. For winter risks, see winter delivery in Montréal, and for preparing shipments so any driver can handle them, see the pickup checklist.
Frequently Asked Questions
What is a courier SLA?
A service level agreement is a written statement of what a courier will deliver, how performance is measured, and what happens if targets are missed. A good one defines on time precisely.
What is a good on-time delivery rate for a courier?
There is no universal figure, because it depends on the work, the service level, and how on time is defined. Many shippers aim for the high nineties on routine work; ask the provider how it measures and what it reports.
How do I calculate on-time delivery rate?
Divide the number of deliveries made within the agreed window by the total number of deliveries, then multiply by 100. For example, 188 on-time deliveries out of 200 is 94%.
Which courier KPIs matter most?
On-time pickup and delivery rates, first-attempt success, how quickly problems are reported, and proof-of-delivery turnaround. Choose three or four and review them regularly.
What should happen when a courier misses a deadline?
The courier should tell you promptly, explain the cause, and propose a recovery. The SLA should state what happens next, such as a review, a corrective step, or a credit if one was agreed.
What Gets Measured Gets Fixed
A courier relationship improves when both sides can see the same numbers. Define on time, choose a few KPIs, put the terms on one page, and review them regularly. The effort is small, and it turns "they were late again" into a conversation about specific deliveries and specific fixes.
If you want to discuss service levels for your routes, describe them through the quote form or contact us through the contact page. For the vocabulary behind these terms, see our glossary of courier terms.
See also: what to do about a damaged or lost courier shipment.