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Fundamentals
November 28, 2022

The Last Mile: What Metrics to Track for Optimal Delivery 

Fundamentals
November 28, 2022

The Last Mile: What Metrics to Track for Optimal Delivery 

Contributors
Ajay Mohan
UX Designer
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Last mile delivery has become a critical component of the e-commerce industry. While it's important to ensure that orders are delivered quickly and efficiently, it's even more important to track the key metrics associated with last mile delivery. By tracking these metrics, companies can gain insights into performance and make meaningful changes that will lead to better customer experiences. Let’s take a look at what metrics should be monitored for optimal last mile delivery. 

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Measuring Time-in-Transit  

A key metric that businesses should be tracking when it comes to last mile delivery is time-in-transit (TNT). This refers to the average amount of time it takes from when an order leaves a warehouse until it is delivered at its destination. TNT is a critical component of customer satisfaction; customers want their orders delivered quickly, so measuring TNT can help you ensure that you are meeting customer expectations.  

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On-Time Delivery Rate 

This metric measures the percentage of deliveries that arrive on time. It is one of the most important metrics for last mile delivery and should be tracked closely in order to ensure that customers receive their orders when expected. OTDR can help you identify problem areas in your supply chain or areas where there may be delays due to weather or traffic conditions. Knowing this information can allow you to make necessary adjustments or take proactive steps to improve operations and ensure timely deliveries. 

    

Delivery Cost Per Order 

The cost per order is an important metric for last mile delivery because it measures how much money is being spent in order to deliver each package. The goal here is to minimise costs while still ensuring that packages are delivered quickly and safely. Companies can reduce costs by optimising routes, using cheaper shipping options, or negotiating discounts with carriers. 

    

Customer Satisfaction Rate 

Customer satisfaction rate is a measure of how satisfied customers are with their overall experience with your company’s last mile delivery service. This metric provides insight into how well your company is doing at providing the best possible customer experience, which is critical in today’s competitive market. Companies should strive to improve customer satisfaction rates by offering better communication options and faster transit times. 

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Package Damage Rates

Finally, you should also track package damage rates (PDR). PDR measures the number of packages that are damaged during transit relative to all shipments sent out over a given period of time. Having insight into PDR can help you identify potential weak points in your shipping process so you can make improvements as needed and reduce package damage.  

 

Last mile delivery plays an essential role in the success of any e-commerce business, so it’s important to track key metrics related to this area of operations. On-time delivery rate, cost per order, and customer satisfaction rate etc are all important metrics that should be monitored closely in order to ensure that customers have the best possible experience when ordering from your business. Monitoring these metrics allows businesses to understand how they are performing relative to customer expectations and helps them identify opportunities for improvement so they can optimise their operations and increase customer satisfaction.

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Last Mile Delivery Calculator

Use this calculator to calculate the cost of your delivery business using this delivery calculator.

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