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5 Key Metrics to Measure in

Last-Mile Delivery
By Rakesh Patel
7 Min Read

Published on: June 13, 2022

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.

Table of Content [Hide]

1. What Is Last-Mile Delivery?

2. What Are Last-Mile Delivery Metrics?
3. What Are KPIs in Last-Mile Delivery
4. How to Choose the Right Metrics?
5. Which Last-Mile Delivery Metrics Must be
Tracked?
6. FAQ
7. Conclusion

What is Last-Mile
Delivery?
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.

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What are KPIs in Last-Mile

Delivery?
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.

How to Choose the Right

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 pinters while

selecting the required metrics to track the

performance of your last-mile deliveries:

The metric must be focused on the 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 the simple and effective metrics as the

target; too many metrics wouldn’t always
serve the purpose.

Considering the parameters mentioned above,

one can choose the right metrics to measure

the performance of the business.

Which Last-Mile Delivery

Metrics Must be Tracked?
Here are five main metrics that a logistics

business can track to get accurate data to

measure the performance of the business:

Customer satisfaction measurement

metrics

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

upon.

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.

Service measurement metric

Service measurement metrics deal with

analyzing the service quality of the business. 

It can be about the on-field experience or the

online experience. 

It is an important metric because it is linked

with customer experience.  

An important metric under service

management is:

3. 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.

Cost measurement metrics

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. 

Cost measurement metrics make sure that you

make the right decisions in the financial

management of your company. 

Making on-time deliveries is a challenge in

itself. 

Fuel prices, the time drivers spend on the road,

vehicle costs, interval-based consumption

costs, and final-mile delivery costs – these

might seem like small expenditures to meet

delivery demands. 

But they sum up to create a significant number.

Last-mile logistics barely pay attention to

tackling the costs involved in the delivery

process. 

This ignorance is what troubles them further in

surviving the rough phase. 

Hence, cost measurement metrics will help you

track your money flow and provide accurate

data to take further initiatives.

4. 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.

5. Delivery dashboard regulation

You can consider it the final and most effective

metric to measure. A clear understanding and

calculation of the pointers on a delivery

dashboard can provide you with the most

valuable insights. These insights cover all the

major aspects of delivery on the dashboard.

Most of the last-mile obligations are met if data

for the dashboard are analyzed and changes

are implemented correctly.

A delivery dashboard includes:

Delivery schedules

Supply chain data

Pre-shipping documentation

Order accuracy

A delivery dashboard normally occurs as the

first interface of the delivery management

software. 

Last-mile logistics that use delivery

management software to meet order fulfillment

tend to have an advantage over the other

logistics.   

Automation makes managing the key metrics

easier as you get every required data on one

screen with real-time updates. 

Here are some key benefits of using automation

to find the key metrics:

Easy task scheduling and management

Real-time data optimization

Record of damage claims

Record of a total number of deliveries

Route optimization and planning

Planned mileage tracking

Capacity utilization

Average service time

Hence, considering the metrics mentioned

above, a last-mile logistics can track the

service performance and implement changes

according to the need.

Automating the delivery process is an add-on

to make tracking easier so that the key metrics

can be traced easily. 

The advantage of getting real-time updates

can ensure smooth workflow and initiate

upgrades.

FAQs

1. What is KPI in last-mile delivery?

KPIs, or key performance indicators, are the

delivery metrics considered to calculate the

performance of the last-mile logistics. Last-

mile delivery KPIs are the key areas where

tracking and improvement must be focused.

2. What is last-mile delivery?

Last-mile delivery means delivering products

from the nearest distribution hub to the

required address, avoiding any time delay.

The term last-mile delivery is usually used for

businesses that require instant delivery, such

as food delivery businesses, enterprise supply

chains, and businesses that promise one-day

delivery.

3. How do you optimize delivery

operations?

Delivery operations can be effectively

optimized by setting up goals for effective

delivery and then finding methods to achieve

them one by one. This could be through

planning deliveries or optimizing routes.

4. List down the key metrics of

last-mile delivery?

Some important final-mile delivery metrics

are:

Customer’s convenience tools

Feedback consideration

Service quality and scheduling

Cost per mile

Delivery dashboard regulation

5. How can one manage last-mile

logistics?

Managing last-mile logistics through

traditional methods may turn out to be non-

profitable.

So it is important to switch to a good route

planner app that performs all the basic

functions for delivery companies.

Role of Upper Route Planner in Regulating

Last-Mile Delivery Metrics

Upper Route Planner is the leading route

planning and optimizing 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-day FREE trial to take

your business to the next level.

Author Bio

Rakesh Patel

Rakesh Patel is the founder and CEO of Upper

Route Planner. A subject matter expert in building
simple solutions for day-to-day problems, Rakesh
has been involved in technology for 30+ years.
 Looking to help delivery businesses eliminate on-
field delivery challenges, Rakesh started Upper
Route Planner with the ultimate goal of simplistic
operations in mind.

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