11 Last-Mile Delivery Metrics & KPIs to Track in 2024
For logistics last mile delivery metrics is an essential data as it impacts customer satisfaction, shipping costs, and delivery efficiency. It refers to the final step of the delivery process: cargo transportation from a distribution center or local facility to the final destination. Last mile delivery KPIs help to maintain customer satisfaction and competitive advantage. We’ll review the key last mile metrics, the measurement methods, and strategies to improve the results.
- 11 key last mile delivery metrics
- How to Measure Last mile Delivery Metrics
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Strategies to improve last mile delivery KPIs
- Delivery route optimization
- Real-time tracking optimization
- Investment in technology and automation
- Improve inventory and warehouse management
- Continuous improvement
- Conclusion
11 key last mile delivery metrics
To improve last mile delivery KPIs, you should focus on tracking and optimization of the operations. The metrics provide a comprehensive view of the delivery process and highlight areas for improvement.
- On-time delivery rate measures the share of deliveries made within the set timeframe. Such a metric is crucial for customer satisfaction and service improvement. A high on-time delivery rate means efficient operations and reliability, while a low rate indicates the need for improvement.
- Delivery time. This metric tracks the average duration of a delivery. Shorter terms can improve customer experience and competitive positioning. Delivery time also helps to identify delays and optimize routes.
- Order accuracy. It measures the percentage of deliveries completed without errors, such as incorrect items or quantities. High accuracy indicates a reduced need for returns and additional costs.
- Cost per delivery. It calculates the average expense for each delivery, including fuel, workforce, vehicle maintenance, and other costs. Monitoring these data helps to implement cost-saving opportunities.
- Customer satisfaction. Client feedback provides direct insight into the experience with the delivery service, helps to understand customer perceptions and implement changes to enhance customer experience.
- Fuel consumption measures the amount of fuel used per delivery that impacts shipping costs. Monitoring fuel consumption can help to implement strategies to reduce fuel usage through route planning and vehicle maintenance.
- The return rate measures the percentage of returned items. High rates may indicate issues with quality of products, order accuracy, or customer satisfaction. Monitoring this can help you address the root causes of returns.
- Empty miles. It refers to the distance traveled by a vehicle without any goods. High empty miles increase fuel costs and reduce efficiency.
- Damage claims measure the number of claims for goods damaged during delivery. This metric is essential to maintain customer satisfaction and reduce costs associated with refunds or replacements.
- Capacity utilization indicates the effectiveness of the truck space usage. High rates mean the efficient use, while low utilization requires better load-planning.
- Planned and actual mileage. The comparison of these metrics indicates inefficiency in route planning. It helps to improve route accuracy and reduce unnecessary miles.
With these metrics, companies can easily identify the weak point of the supply chain and implement optimization strategies.
How to Measure Last mile Delivery Metrics
As we now see, accurate measurement of the metrics is essential for better delivery performance. Let’s review methods and tools for their measurement.
- GPS tracking. Such systems provide data on locations, delivery routes, and times. With GPS, you can measure such last mile metrics as delivery time, on-time delivery rate, and average distance.
- Delivery management software. The platforms provide route optimization, order tracking, and performance reporting options. With this software, you can measure cost per delivery, delivery success rate, and vehicle utilization. Delivery management systems can provide you with detailed reports and analytics.
- Customer feedback tools. You can use surveys, feedback forms, and review platforms—order management systems to measure customer satisfaction. The platforms track the entire order placement and delivery cycle. Their integration monitors order accuracy, return rates, and damage claims.
- Transportation management systems (TMS). Such solutions are designed to plan, execute, and optimize cargo shipping. Their main metrics include transit times, fuel usage, and planned vs actual mileage. With these data, you also can optimize routes and reduce fuel costs.
- Data analytics can help in processing large volumes of data and provide insights into delivery performance. Such tools analyze trends and generate predictive analytics. It provides transit time measurement, delivery success rates, and other essential metrics.
- Internet of things (IoT) devices, such as intelligent sensors or RFID tags provide real-time tracking. Its integration with other delivery management systems ensures tracking of order accuracy, damage claims, and delivery time.
- Regular measurements and analysis of last-time delivery metrics help to ensure accuracy and identify areas for improvement. These instruments can enhance operations efficiency and reduce costs.
Strategies to improve last mile delivery KPIs
Improving last mile delivery metrics is crucial for efficient delivery processes, lower costs, and customer satisfaction. To achieve this, you may use one of the following steps.
Delivery route optimization
Systems for route optimization can improve delivery efficiency. It can analyze traffic patterns, locations of the delivery, and truck capacities to find the most suitable and efficient route. Route optimization helps to reduce travel time, empty miles, and fuel consumption.
Real-time tracking optimization
Systems with real-time tracking allow monitoring of the cargo during the whole delivery process. In addition, it ensures quick responses to any possible issues. Real-time updates on supply status and locations can help in improving customer experience and missed deliveries reduction.
Investment in technology and automation
The use of advanced technologies can streamline the delivery process. Automated systems, robotics, and AI technologies can increase efficiency and reduce errors.
Improve inventory and warehouse management
Efficient management practices may reduce order processing times and enhance delivery speed. Such strategies include just-in-time inventory, automated picking, and cross-docking. They can also minimize delays and improve order accuracy.
Continuous improvement
With continuous improvement initiatives, you’ll be able to maintain high performance. Regular metrics review and customer feedback can lead to ongoing enhancements—data analytics. The use of data analytics instruments helps to identify patterns in delivery performance. Such data as delivery times, order accuracy, and fuel consumption can highlight areas for improvement.
Conclusion
If you want to enhance customer satisfaction and remain competitive, last mile delivery KPIs will be important data for that. Focus on key elements may provide insights into delivery processes and identify areas for improvement.
Numerous strategies can enhance last mile delivery operations. In addition, continuous improvement and effective communication with customers ensure a pleasant delivery experience. Logity Dispatch can help you improve your last mile delivery. Contact us to take proactive steps today and start optimizing your delivery process.
