Last-mile delivery is one of the most challenging aspects of the supply chain, and also one of the most important. It directly impacts customer satisfaction, delivery timelines, and overall operational costs. 

With consumer expectations for faster and more efficient deliveries on the rise, businesses must continuously optimize their last-mile operations. That’s why tracking and analyzing the right Key Performance Indicators (KPIs) can be a game-changer in improving last-mile delivery performance. In this post, we discuss several KPIs that we believe are the most crucial to focus on and how they can drive improvements.

On-Time Delivery Rate

The on-time delivery rate measures the percentage of deliveries completed within the promised timeframe. This KPI is crucial for evaluating reliability and customer satisfaction.

Monitor this metric daily and identify patterns or routes where delays frequently occur. Use this data to adjust schedules, streamline routes, or allocate additional resources to problem areas.

Delivery Success Rate

The delivery success rate tracks the percentage of packages delivered without any issues, such as failed delivery attempts or damaged goods.

Analyze instances of failed deliveries to determine root causes, such as incorrect addresses or lack of customer availability. Implement solutions like better address verification tools or real-time customer notifications to improve this metric.

Cost Per Delivery

This metric calculates the average cost of completing a single delivery. It includes fuel, labor, vehicle maintenance, and other operational expenses.

Identify inefficiencies that drive up costs, such as suboptimal routing or low delivery density. Optimize delivery schedules and consider leveraging technology like route optimization software to reduce expenses.

Average Delivery Time

Average delivery time measures the total time it takes from when an order is placed to when it’s delivered to the customer. This KPI is vital for meeting customer expectations for speed.

Track this metric alongside on-time delivery rates. If delivery times are consistently high, investigate bottlenecks in your process, such as warehouse delays or inefficient routes.

Customer Satisfaction Score (CSAT)

Customer satisfaction is a direct reflection of your last-mile performance. CSAT is typically measured through post-delivery surveys or feedback forms.

Use customer feedback to pinpoint recurring complaints, such as late deliveries or damaged goods. Address these issues by refining your processes and training your delivery personnel.

First-Attempt Delivery Rate

This KPI measures the percentage of deliveries successfully completed on the first attempt. A low rate often leads to increased costs and delayed customer satisfaction.

Reduce failed first attempts by providing customers with precise delivery time windows and enabling live tracking. Consider offering flexible delivery options, such as pickup points, for greater convenience.

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