Many, if not most, agreements between sellers of goods and logistics service providers (LSPs) contain a list of metrics that are used to evaluate various aspects of supply chain or provider performance. In theory, these metrics should provide clarity to both parties about what success in their relationship looks like. In reality, they frequently breed confusion and conflict. How does this well intentioned undertaking go so wrong so often? In our experience, it usually has something to do with the parties’ failure to address thoughtfully and prospectively the questions of purpose and priority, definitions and methodology, and consequences. In order to avoid these kinds of problems, the contracting parties may want to ask themselves and each other the following questions when developing and documenting their understandings about performance measurement.