10 Last-Mile Delivery Metrics for 2023 You Should Track

Last-mile delivery presents a number of difficulties, especially for logistics organizations.

We know logistics for the last-mile might be triggering to you, in fact, chances are most other delivery services share your suffering. But, sadly, ignoring the issue won't make it disappear.

In turn, here's another suggestion: What if you knew precisely which key performance indicators (KPIs) to monitor to enhance the procedure and spot potential improvement opportunities? Would that increase the productivity or financial results of your team? 

Furthermore, with the extensive tracking and management features provided by Kosmo, you can improve the efficiency of your last-mile deliveries. As simple as that, no more headaches.

Thus, we'll delve into the 10 most important last-mile delivery metrics and offer insights on how to choose the ones that align with your business goals so you can skip the nonsense.

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What are the Key Main Takeaways?

• Monitoring last-mile KPIs can increase team productivity and enable time and cost savings.
• It is far more efficient to select the ideal two or three KPIs to monitor rather than measuring them all.
• The top last-mile delivery KPIs to monitor are order accuracy, on-time deliveries, and customer happiness. 
• Cost per mile is a simple to monitor measure that aids in identifying costs associated with last-mile delivery operations.
• Fuel waste and costs can be decreased by using the fuel consumption rate (FTR), which quantifies the quantity of fuel used by each vehicle on each route.
• Since empty miles waste resources, fuel, and driving time, they should be avoided if possible.
• Average service time (AST) takes into account the time spent on a single order and aids in cost reduction and increased efficiency.
• The first attempt delivery rate (FADR) measures the proportion of deliveries that were successful on the first attempt, saving money and resources.
• Delivery attempts per stop (DAPS) measures how many times a driver tries to make a delivery before being successful and aids in streamlining the delivery procedure.
• Delivery completion rate (DCR) is a metric that compares the number of deliveries actually made vs those that were attempted. It can be used to pinpoint problems and enhance delivery procedures.
• Kosmo offers a comprehensive solution to optimize your last-mile delivery operations and boost customer satisfaction.

The 10 Key Last-Mile Delivery Metrics

1. On-Time Delivery Rate

How much time are your customers waiting for their orders to arrive?

The on-time delivery rate is a fundamental metric that measures the percentage of deliveries made on schedule.

Customers today expect their orders to arrive promptly, and a high on-time delivery rate indicates reliability and professionalism.

Consistently meeting delivery deadlines enhances customer satisfaction and fosters long-term loyalty.

2. Delivery Time Window Compliance

Delivery time window compliance gauges how well your delivery team adheres to specified delivery time frames.

Customers often have busy schedules and expect deliveries during specific hours.

A good tip to obtain a high delivery time window compliance can be asking your client: When do you want it delivered? This way you will make sure you are flexible and adjusting to them and not the other way around.

By tracking this metric, you can identify potential scheduling issues and improve overall efficiency.

3. First Attempt Delivery Success Rate

The first attempt delivery success rate shows the percentage of orders successfully delivered on the initial try.

Failed first attempts lead to additional costs and customer frustration due to rescheduling. This metric highlights areas for improvement in route optimization and resource allocation.

4. Delivery Cost per Order

Delivery costs significantly impact your bottom line. Calculating the average delivery cost per order helps you optimize delivery routes, reduce fuel expenses, and enhance overall cost efficiency.

5. Delivery Distance

Monitoring the average delivery distance provides insights into the overall efficiency of your last-mile delivery process. Shorter distances often translate to lower costs and quicker delivery times.

The key lies in guiding your drivers efficiently to maximize the delivery distance.

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6. Order Tracking and Visibility

In today's digital age, customers demand real-time tracking and visibility of their orders.

By offering accurate order tracking, you enhance customer satisfaction and reduce customer inquiries about delivery status.

7. Delivery Exception Rate

The delivery exception rate measures the percentage of deliveries that encounter exceptions, such as incorrect addresses or unsuccessful deliveries.

Lowering this rate minimizes disruptions and ensures smooth operations.

8. Customer Feedback and Reviews

Customer feedback and reviews are valuable indicators of your last-mile delivery performance.

Positive reviews and high satisfaction ratings can attract more customers and boost your online reputation.

Below you will find some of Kosmo’s reviews.

9. Average Waiting Time

Are you aware of how much time your customers are waiting for their orders?

The average waiting time signifies the time customers have to wait for their deliveries upon arrival. Reducing waiting times enhances the overall customer experience and leaves a positive impression.

10. Environmental Impact

The environmental impact metric focuses on evaluating the carbon footprint of your last-mile delivery operations. Implementing eco-friendly practices not only benefits the environment but also resonates positively with environmentally conscious customers.

How to Choose the Most Important Last-Mile Delivery Metrics

Selecting the most relevant last-mile delivery metrics for your business requires a careful evaluation of your objectives and challenges. Here's a step-by-step guide to help you choose the right metrics:

1. Identify Business Objectives: Determine what you aim to achieve through your last-mile delivery process. Whether it's reducing costs, enhancing customer satisfaction, or improving delivery efficiency, your objectives will guide your metric selection.
2. Analyze Current Performance: Evaluate your current delivery operations to identify areas that require improvement. Analyzing existing data can highlight which metrics are most critical for your success.
3. Align Metrics with Business Goals: Choose metrics that align directly with your business goals. For instance, if cost reduction is a priority, focus on metrics like delivery cost per order and distance optimization.
4. Set Clear Targets: Establish realistic and measurable targets for each selected metric. Setting targets will help you track progress and motivate your team to achieve specific milestones.
5. Leverage Technology: Invest in delivery management software and tracking systems to gather accurate data and streamline data analysis. Technology can significantly improve your decision-making process.

How can Kosmo Help you Streamline your Last-Mile Delivery?

To gain a competitive advantage in last-mile delivery, consider leveraging Kosmo—an innovative solution designed to optimize and automate your delivery operations.

Kosmo offers the following features:

• Advanced Route Optimization: Kosmo uses intelligent algorithms to create the most efficient delivery routes, reducing fuel costs and delivery time.
• Real-Time Tracking: With Kosmo's real-time tracking system, customers can monitor their orders throughout the delivery process, enhancing transparency and customer satisfaction.
• Analytics and Insights: Kosmo provides in-depth analytics and insights into your last-mile delivery performance, enabling data-driven decision-making and continuous improvement.
• 3rd Party Couriers Automation: Assign the best courier based on your needs.

Implementing Kosmo will revolutionize your last-mile delivery process, giving you a competitive edge in the market and elevating your brand reputation.

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