Essential Last-Mile Delivery Metrics Guide: Top KPIs for 2024

If you own a delivery company, you know the after-effects of Covid, right?

Globally, over 75% of companies admitted that the pandemic disrupted their supply chain. 

This depicts how easy it is to disrupt the entire supply chain process.

The situation created during the pandemic was indeed problematic, but not all companies vanished during this phase of struggle.

Some last-mile logistics survived this situation pretty well.

They worked on the core of their business and paid undivided attention to the important metrics, considering the KPIs.

What is the important last mile delivery metrics?

What purpose does the KPIs serve?

Let’s explore more about the last-mile delivery industry.

Understanding Last-Mile Delivery Analytics

Fundamentals of last-mile metrics

Last-mile delivery refers to delivering products from the nearest distribution hub to the required address, avoiding any time delays.

The term last-mile delivery is usually used for businesses that require instant delivery. Businesses such as food delivery businesses, enterprise supply chains, and those that promise one-day delivery need to be very particular about last-mile. 

Last-mile has recently gained popularity. It is predicted that by 2027, the global last-mile delivery market will grow to more than 200 billion US dollars from 108.1 billion US dollars in 2020. 

This indicates that the future of last-mile delivery logistics is very bright. 

But this also brings in the final mile challenges because proper workflow management is a must to maintain such a vast business. 

That’s the reason why a proper understanding of last-mile delivery metrics is important.

What are Last-Mile Delivery Metrics?

The parameters used to measure the progress and performance of a last-mile delivery logistics are known as last-mile delivery metrics. 

The collected data can plan strategies that contribute to business growth. 

These are the quantifiable data collected concerning the delivery operations to determine the KPIs or key performance indicators.

Impact on business performance

KPIs stand for key performance indicators.

The delivery performance KPI is a metric used to determine the performance of the delivery business both qualitatively and quantitatively. 

The data collected can be implemented to make better decisions and determine how to achieve the business goal.

Core Last-Mile Delivery KPIs

1. Customer experience metrics

Delivery success rate

Delivery success rate refers to the percentage of deliveries completed successfully without any delays, damage, or customer complaints. 

This metric is important as it reflects the effectiveness of the logistics operations and the reliability of the delivery process. Tracking this rate helps businesses identify bottlenecks in the delivery chain and make necessary improvements.

Customer satisfaction scores

Customer satisfaction stands on top of almost every business list. A buyer’s satisfaction levels define the efficiency of a logistics business.

A customer who is satisfied with how the package is received at the customer’s doorstep can be the reason for getting more leads.

Hence, this metric is very important to work on.

The metrics to consider under customer satisfaction are:

1. Customers’ convenience tools

The tools used to enhance customer experience while taking your delivery services are known as the customers’ convenience tools.

Most delivery companies believe in upgrading the traditional ways of treating customers and try to replace them with the latest and most convenient methods.

Considering the demands of modern-day customers, a user-friendly interface is set between the customer and the logistics.

This is done to make sure that there is clear communication between the customer and the delivery personnel.

Real-time tracking of the parcel makes it easier for the customer to plan their schedule accordingly.

This will lead to successful delivery operations.

Neither the customer will have to wait for a whole day, nor will the business face failed delivery penalties.

This will increase brand loyalty.

2. Feedback consideration

Taking a customer’s feedback is the most valuable step that any logistics can consider.

Customers’ feedback serve not only as a parameter to measure the success of the delivery service but also as a business enhancer.

Feedback can be a word of appreciation for the service or a complaint regarding the same.

The appreciation can be taken as motivation, and the complaint details can be studied to improve the service.

Both serve as valuable insights for the business.

2. Operational efficiency metrics

Time-based performance

Time-based performance focuses on how efficiently deliveries are completed within the expected time frame.

An important metric under this category is:

1. Time to respond and schedule

Time to respond and schedule is directly linked with the management.

The time taken to respond to any query raised by the customer and the ability to re-schedule according to the situation are considered important metrics.

Delivering faster services, responding actively, and providing instant solutions are the key factors that can be worked upon under this metric.

Measuring your operational efficiency is yet another parameter to calculate your average delivery time, delivery efficiency, the ability to cater to last-mile deliveries, and much more.

Hence, a lot can be done under this metric to find out more about the service provided by your last-mile delivery logistics.

2. Cost management indicators

This involves how much you spend and how much you gain. If you lose track of your company’s expenditure and profit, you will face issues.

3. Cost per mile

The costs involved in traveling a certain distance to close delivery are cost per mile. Shipping and delivery businesses can be expensive, especially during last-mile deliveries.

These costs cannot be eliminated, but one can take certain measures to reduce them.

Measuring cost per mile provides you with valuable insights to calculate the operating costs of your business.

While calculating cost per mile, it is important to consider both variable and fixed expenses.

• Fixed expenses include vehicle maintenance costs, driver’s salary, insurance, renewal charges, and tolls.
• Variable expenses include fuel costs, vehicle breakdown repair costs, extra mile costs, and wages of employees working on an hourly basis.

Cost per mile metric can provide you with a near-to-accurate expenditure summary, which can help you calculate:

• Average service time and cost
• Average delivery distance
• Expected last-mile mileage
• Fuel consumption
• Vehicle cost
• Profit margins

All these data can be collected during and after the calculation of cost per mile.

3. Quality control metrics

Accuracy measurements

Accuracy measurements focus on the correctness of delivery operations, such as order accuracy and on-time delivery rates.

A delivery dashboard plays a crucial role in ensuring accuracy by providing key data points such as:

• Delivery schedules
• Supply chain data
• Pre-shipping documentation
• Order accuracy

Most of the last-mile obligations are met if data for the dashboard are analyzed and changes are implemented correctly.

Service level compliance

Service level compliance measures whether the agreed-upon service levels are being met. Automation makes managing the key metrics easier, as you get every required data on one screen with real-time updates.

Key benefits of using automation for compliance include:

• Easy task scheduling and management
• Real-time data optimization
• Record of damage claims
• Record of the total number of deliveries
• Route optimization and planning
• Planned mileage tracking
• Capacity utilization
• Average service time

By considering these metrics, a last-mile logistics company can ensure smooth workflows, track performance, and implement upgrades effectively.

Implementation Guide

Selecting relevant metrics

Many metrics can be measured, but only a few need to be measured. 

Your last-mile services can be enhanced by limited research as well. But the research must be focused and objectified. 

Consider a few pointers while selecting the required metrics to track the performance of your last-mile deliveries:

• The metric must be focused on team performance rather than an individual.
• It must track trends.
• It must drive improvement rather than drawbacks.
• The metric must point out questions rather than assumptions.
• Keep simple and effective metrics as the target; too many metrics don’t always serve the purpose.

Considering the parameters mentioned above, one can choose the right metrics to measure the performance of the business.

Setting benchmarks

To achieve meaningful insights, benchmarks are essential. Setting clear goals for each metric ensures the business has a reference point for performance. 

Benchmarks should align with:

• Industry standards and expectations
• Customer expectations for delivery speed and accuracy
• Company goals, such as cost reduction or enhanced customer satisfaction

When benchmarks are realistic, they help track whether the business is on course or requires adjustments in strategy.

Monitoring and analysis

Once the relevant metrics are selected and benchmarks are set, continuous monitoring and analysis ensure performance stays on track. 

This step involves:

• Using tools like dashboards to track metrics in real-time
• Conducting periodic reviews to identify trends and areas for improvement
• Analyzing deviations from benchmarks to uncover root causes and take corrective actions

Automation can simplify this process by providing instant insights, enabling businesses to adjust strategies promptly and maintain efficient last-mile delivery operations.

Role of Upper in Regulating Last-Mile Delivery Metrics

Upper Route Planner is the leading route distribution software. It is an all-in-one delivery management software that can meet business requirements regarding route planning, quick dispatch, and much more. 

Upper Route Planner is not just a cost-effective investment that a business can make to manage the logistics business effectively and simplify the delivery process. It is also known to boost operational efficiency and productivity. 

Calculating metrics shall be an easy task with Upper Route Planner as it comes with a user-friendly interface that makes the required data accessible.

To learn more about the software, its features, and benefits, start a 7 days FREE trial to take your business to the next level.