All delivery companies need to assemble a list of key performance indicators (KPIs) to help them analyze the performance of their drivers, vehicles, and routes. Here are twenty-five of the most important KPIs for courier driver companies.
Table of Contents
10 Driver KPIs
These ten key performance indicators for truck drivers or courier drivers help you track how well they accomplish their package delivery tasks and affect fleet performance, delivery times, and delivery windows.
It’s important not to run an engine when loading or unloading. Running the engine on your cargo van only when necessary improves efficiency and safety – although starting too late can cause courier drivers to fall behind on the delivery schedule.
Acceleration and Hard Braking
Delivery drivers need to learn how to accelerate and brake properly. Too-rapid acceleration and braking decrease fuel efficiency, contribute to wear and tear on the vehicle and be dangerous.
Leaving the engine idling for too long decreases fuel efficiency. Reducing excessive idling is good for the environment and for your bottom line.
It’s good to compare the driving route designated with the actual route driven. You want to minimize wasteful out-of-route driving – whether done intentionally or because the driver got lost.
Number of Stops
By tracking the number of stops per vehicle (daily pick ups and drop offs), you can measure the efficiency of your route optimization. Identify those vehicles with a large number of stops to improve your routing schedules.
Time at Each Stop
How much time is your courier driver spending at each stop? Too much time indicates inefficiency; too little time might negatively affect adherence to schedule and customer satisfaction.
Are your courier drivers sticking to their schedules? Drivers spending too much time at or driving to each stop can cause them to fall behind the schedule. Poor adherence to the schedule could also indicate drivers going off-route or taking too many breaks.
You can use GPS tracking and speed monitoring devices to tell when your courier drivers are adhering to posted speed limits. You also want to know when drivers are lagging by driving too slow. You may want to be alerted when a driver consistently goes a certain amount over a set speed.
Tracking each drivers’ record of traffic violations is important to weed out reckless drivers. When a courier driver is pulled over for a violation, that affects the driving time and schedule integrity. Too many safety incidents can result in fines on both the driver and the vehicle – meaning your company. A driver with a history of safety incidents is also more likely to be involved in a costly crash and result in higher insurance rates. Make sure they have a clean driving record.
Drivers are required by law not to exceed driving a set amount of hours each day. Any drivers exceeding these hours of service (HOS) limits are breaking the law and endangering themselves and their vehicles. However, some exceptions are worth noting, including the exception of the adverse driving conditions exception and the emergency conditions exception. This is one of the most critical KPIs for driver safety and performance.
10 Fleet Performance KPIs
It’s important to track not just delivery driver performance metrics but also the performance of your fleet. By tracking key metrics associated with on-road performance, maintenance, and repairs, you will get a better handle on your overall costs.
Fuel is one of the top three fleet expenses. Analyzing fuel economy by tracking miles-per-gallon helps keep expenses in check and improves your courier service’s bottom line.
Tracking the number of deadhead trips or miles that carry no freight helps to identify opportunities to improve fleet efficiency. You want more filled trucks and fewer empty ones.
How efficiently are you using your own vehicles? Vehicle utilization compares vehicle demand versus capacity; the higher the ratio, the more efficient the utilization.
Total Vehicle Breakdowns
You want to minimize the number of vehicle breakdowns in your fleet. If you identify a high rate of vehicle breakdowns, it’s a possible indicator that your fleet maintenance operation needs to be evaluated.
First-Time Fix Rate
The first-time fix rate (FTFR) is the percentage of time a mechanic is able to fix a vehicle issue on the first visit without the need for a follow-up. A low FTFR could indicate an unworkably low parts inventory or a less-than-competent maintenance staff – and affects the number of vehicles available for operations.
Vehicle Diagnostic Codes Generated
Most newer vehicles contain onboard diagnostic systems that generate diagnostic codes when issues arise. Tracking the number of codes generated and which are most common can help identify specific maintenance issues with the fleet – and alert staff to increase inventory on parts needed for those repairs.
Average Maintenance Downtime
It’s crucial to know how much time your vehicles spend out of action for maintenance and repairs. You want to minimize your fleets’ downtime to maximize the number of vehicles available – and the total number of vehicles needed. A vehicle not on the road is producing zero value for your company.
Vehicle Part Inventories
To minimize vehicle downtime and maximize FTFR, your maintenance staff needs the right parts on hand. You also want to keep inventory costs low by reducing the number of unnecessary parts on hand. Tracking your part inventory levels – and prioritizing high in-demand parts – is crucial.
All of these KPIs – and others feed into the total cost of ownership (TCO) for each vehicle. This metric is calculated using the initial vehicle cost, fuel consumption, maintenance costs, taxes and licenses, and other related operating costs over time. It’s important to track TCO not just for individual vehicles but for the entire fleet – and then compare TCO to revenue generated.
Vehicle Replacement Costs
Even the best-maintained vehicles eventually have to be replaced. This decision can be facilitated by comparing ongoing maintenance costs with the replacement cost for a similar vehicle.
5 Customer Satisfaction KPIs
How well do you satisfy your customers’ needs? Use these five KPIs for last-mile delivery to evaluate how well you are performing in regards to quality customer service. These points will help whether you run a business offering courier services or just an independent contractor working as a courier driver.
Delivery in Full
One of the key delivery performance KPIs is delivery in full (DIF). This measures the number and percentage of deliveries that are completed in full. It does not track whether the package delivery was on time. This metric is a key factor in customer satisfaction and operational efficiency while delivering packages.
Delivery on Time
The second key measurement of delivery performance is delivered on time (DOT). This measures the number and percentage of deliveries that are made on time, either as promised to the customer or as scheduled internally. It does not track whether those deliveries were completed in full. Like DIF, DOT factors into both customer satisfaction and operational efficiency.
Delivery in Full on Time
Delivery in full on time (DIFOT) combines the two previous indicators to track those deliveries that were completed in full and on time as promised or scheduled. It is the ultimate metric for tracking delivery performance.
Customer satisfaction is also impacted by the order accuracy – how closely what was delivered compared to what was ordered. The higher the order accuracy rate, the less money you lose on returns or late deliveries for those orders delivered inaccurately.
Finally, you can measure customer satisfaction by tracking the number and type of customer complaints. At the very least, compare the total number of complaints to the total number of deliveries.
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As the job title suggests, a courier driver, whether working for courier businesses or as an independent contractor, is responsible for delivering packages and documents in a timely manner.
You can become an independent courier driver if you have a reliable vehicle, a valid driver’s license, and a clean driving record. You can offer same-day deliveries and local deliveries to companies and individuals in your city. You don’t need a formal education to become a courier driver, just be over 21 years, have your own vehicle, and you are ready to be your own boss.
The average salary of a courier driver is anywhere between $20-28 per hour. The actual amount depends on the courier service company you work with or the clients you service on a regular basis.
How to Track Performance
One way to track these essential metrics is by using a transport KPI template in Excel. You can also use an app that helps with route planning and performance tracking, such as Upper Route Planner. The important thing is to keep track of all these KPIs and analyze them regularly – so you can have a better handle on your fleet’s performance.