The 7 KPIs that determine the success of last mile deliveries

Knowing which KPIs to consider clarifies how you are managing your last mile delivery process, how you could make it more effective, and how to cut unproductive expenses.

With the increase of online commerce, the logistics sector has undergone a profound transformation: the “analog” fleet management and paper registers have given way to software and digital data reading.

The logistics market is currently worth more than $ 5.5 trillion globally and estimates are up for years to come. By virtue of this leap forward, data reading has assumed an increasingly central role within delivery companies.

The KPIs (Key Performance Indicators) show precisely the most relevant data in terms of costs, timeliness and delivery management. In this guide we want to talk to you about the 7 most important KPIs you should monitor and why it is essential to set up a data analysis strategy. Let’s get started right away.

Why is it so important to monitor last mile delivery KPIs?

Technological innovation has provided delivery companies with new interesting tools to track their performance. Unlike in the past, today there is a simple and reliable way to learn in detail metrics such as fuel consumption, average service time and hours in motion.

Knowing the KPIs related to the performance of your fleet allows you to:

• Obtain information on the entire logistical flow, from goods arrival to delivery
• Analyse the performance of your fleet and find new ways to make service more efficient, with greater customer satisfaction
• Know the costs with absolute precision, to be able to control and optimize them
• Know how to best plan your fleet’s route, delivering at the lowest possible cost for you and with the shortest waiting time for the customer

Which are the KPIs to monitor?

When we talk about KPIs, we refer to all those key performance indicators for a business. If you deal with last mile delivery, we can say that among the most interesting KPIs to monitor are:

• Fuel consumption
• Average service time
• Mileage travelled
• Hours in motion
• Number of interruptions
• Cost per stop
• Number of complaints

Let’s explore each point in detail.

# 1 – Fuel consumption

One of the most interesting metrics to monitor is fuel consumption. It is often difficult to determine the exact fuel consumption for each vehicle, especially if you do not know the route. Knowing how much fuel you consume is useful both for optimizing the costs of fuel’s per vehicle and for better planning routes and being more productive.

Average daily fuel consumption can be easily calculated using fleet management software such as GoTraxx. On GoTraxx, in fact, you can keep track of the route of each vehicle, the fuel costs and the amount of litres used for each kilometre travelled.

# 2 – Average service time

The average service time refers to the total time span that is used to fulfil a single order. The reference time frame goes from the moment the goods are collected until their delivery to the customer’s address.

Knowing this metric can be useful to understand if there are “dead” times to be optimized and if there is a margin to increase the couriers’ productivity, speeding up deliveries. The average service time can be calculated by comparing the time spent at the collection point with the number of deliveries to be completed.

# 3 – Mileage covered

One of the most interesting KPIs is the mileage covered by your fleet. Mileage is determined by the places where orders are delivered, but it can often change based on several factors, such as a closed road or busy traffic.

Focusing on planning an efficient route can help you reduce the kilometres travelled, resulting in savings in fuel and CO2 emissions into the atmosphere. Using GoTraxx you can rely on Artificial Intelligence that will help you optimize planning and reduce time by 90%. In addition, thanks to route tracking, you will know exactly which deviations are foreseen for your vehicles, and also evaluate the driving statistics relating to the individual drivers.

# 4 – Number of deliveries made

The number of deliveries made represents the productivity of your fleet. The goal is to achieve as many deliveries as possible, faster and at the lowest cost.

Keeping track of the number of daily deliveries and the progress of this data will allow you to understand which are the critical points of your organization, and how to intervene to increase productivity.

In the GoTraxx Dashboard you will have at your disposal all tools for monitoring your deliveries, with the ability to know in real time when a delivery is completed and to quickly carry out all post-delivery checks.

# 5 – Number of interruptions

Knowing if there are lots of driver interruptions means understanding and tracking the total number of stops a vehicle makes while delivering a certain number of orders.

A high rate of interruptions can negatively affect fuel consumption and delivery times, resulting in increased costs and customer dissatisfaction. The ideal is to reduce the number of interruptions as much as possible, to optimize and speed up delivery.

To achieve this, it is important to monitor the performance of your drivers. On the GoTraxx Dashboard you will be able to obtain a clear picture of the driving behaviour of your drivers, collecting data on the hours spent on board of each vehicle, the number of stops, the kilometres travelled and the punctuality in deliveries.

# 6 – Cost per stop

When we talk about KPIs, it is certainly important to talk about costs and, in particular, about cost per stop. In other words, this is the cost your business incurs for a single delivery. The cost is determined by several factors, from fuel to the working hours of your drivers.

Having an estimate of this will help you define your margins correctly and apply strategies to reduce expenses where possible.

# 7 – Number of complaints

Finally, one of the most interesting KPIs to know is the number of complaints received, an index of customer satisfaction. With respect to the “customer satisfaction” macro-theme, it is useful to know:

• The percentage of damage claims received. In fact, it may happen that some goods suffer damage during delivery. To find out the extent of this data, you can compare the total number of complaints received with the number of total deliveries
• The percentage of complaints due, for example, to a delay in delivery times. In this case, to know the data, you can compare the number of complaints received with the number of total deliveries

To increase customer satisfaction, it is useful to invest in effective tracking tools, which allow you to follow the delivery of the package in real time and leave feedback at the end of the process. With GoTraxx you can generate a tracking code for the customer, so that they can keep the entire process under control, avoiding the risk of non-delivery.

If you want to start monitoring the KPIs that matter to the management of your fleet and optimizing last mile delivery, GoTraxx is the ideal choice for you.

With our software you have all the tools you need to optimize your fleet, simplify the work of your employees and reduce delivery costs.

If you want to access all the benefits of GoTraxx, fill out the form below to activate your free 30-day trial now.

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