8 Key Last-Mile Delivery Metrics to Monitor in 2024

The last mile of delivery is often the most critical—and most expensive—part of the shipping process. It’s the final step that gets products to customers' doorsteps, and it’s where customer satisfaction is either won or lost. In fact, last-mile delivery costs account for 41% of total supply chain expenses​. To ensure success in this area, businesses need to track specific metrics that provide insights into efficiency, costs, and customer experience. By monitoring these key performance indicators (KPIs), companies can identify bottlenecks, reduce costs, and improve overall service.

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Table of Contents

1. On-Time Delivery Rate
2. Average Delivery Time
3. Cost Per Delivery
4. Delivery Success Rate
5. Customer Satisfaction Score
6. Fuel Efficiency and Carbon Emissions
7. Route Optimization Score
8. Driver Performance and Safety Metrics

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1. On-Time Delivery Rate

The on-time delivery rate measures the percentage of deliveries that arrive at their destination within the scheduled time window. This is one of the most critical last-mile delivery metrics because it directly impacts customer satisfaction. Customers increasingly expect same-day or next-day delivery, and delays can lead to negative reviews and lost business.

Why It’s Important: A high on-time delivery rate indicates that your logistics and route planning processes are efficient and reliable. If your on-time rate is low, it may be time to reevaluate your delivery schedules or consider implementing more advanced route optimization tools like EasyRoutes to streamline operations.

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2. Average Delivery Time

This metric tracks the average time it takes for a package to reach the customer after leaving the warehouse or fulfillment center. Average delivery time provides insight into how efficiently your business is fulfilling orders and can highlight areas where processes might be slowed down by traffic, route issues, or operational inefficiencies.

How to Improve It: Using a sophisticated route planning solution like EasyRoutes can reduce travel time by selecting the most efficient paths and avoiding congestion. Additionally, consider investing in local warehousing to reduce the distance between fulfillment centers and your customers. Companies like Sweet E's Bake Shop have successfully used such strategies to reduce their delivery times for baked goods, ensuring their products reach customers in perfect condition.

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3. Cost Per Delivery

Cost per delivery is a vital metric for measuring profitability. It encompasses all the costs associated with making a single delivery, including fuel, driver wages, vehicle maintenance, and administrative expenses. By reducing this cost, you can improve your bottom line and offer more competitive shipping rates.

Why It Matters: Lowering your cost per delivery is crucial for maintaining profitability, especially for businesses that offer free or low-cost shipping. Monitoring this metric helps identify inefficiencies and enables businesses to make data-driven decisions, such as optimizing delivery routes or using fuel-efficient vehicles. For businesses that specialize in grocery delivery or pet supply delivery, reducing this cost can lead to a significant increase in profit margins.

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4. Delivery Success Rate

The delivery success rate measures the percentage of deliveries completed on the first attempt without needing a second trip. This metric is particularly important because failed delivery attempts increase costs and can negatively impact customer satisfaction.

Tips for Improvement: Implementing order tracking and customer notification systems can improve communication and reduce missed deliveries. Businesses like Wonky Box have used these tools to streamline their delivery process and achieve higher first-attempt success rates, even when dealing with fresh produce that requires specific handling instructions.

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5. Customer Satisfaction Score

Customer satisfaction is an essential metric for evaluating how happy your customers are with your delivery service. This score is often gathered through surveys or feedback forms and can provide insights into what’s working and what needs improvement in your last-mile delivery process.

Why It’s Important: A high customer satisfaction score not only indicates successful deliveries but also drives repeat business and positive reviews. To improve this score, focus on key areas such as communication, delivery speed, and overall service quality. For example, The Real Good Life has successfully boosted customer satisfaction by offering proactive updates and a smooth delivery experience for their meal kits.

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6. Fuel Efficiency and Carbon Emissions

Fuel efficiency measures how much fuel your vehicles consume per delivery, while carbon emissions track the environmental impact of your delivery operations. As more companies look to reduce their environmental footprint, this metric has become increasingly important.

How It Helps: Monitoring fuel efficiency and emissions can help businesses optimize their routes and adopt more sustainable practices, such as using electric vehicles or implementing eco-friendly driving techniques. In fact, 86% of consumers are willing to delay e-commerce deliveries if it results in a more sustainable shipping process​. Route optimization software like EasyRoutes can contribute to reducing fuel consumption and emissions, making your operations more eco-friendly.

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7. Route Optimization Score

The route optimization score measures how effectively your routes are planned and executed. A high route optimization score indicates that your routes are designed to minimize travel time, fuel usage, and delivery costs, while also maximizing the number of deliveries made per trip.

How to Track It: Using route optimization tools like EasyRoutes, businesses can track and analyze their route efficiency. Companies such as Illuminate Food have used route optimization to balance speed and cost-efficiency, enabling them to meet customer demands while keeping expenses in check.

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8. Driver Performance and Safety Metrics

Driver performance metrics include factors such as driving speed, adherence to planned routes, and safe driving behaviours. Monitoring these metrics is essential for ensuring the safety of your drivers and other road users. It also helps reduce wear and tear on vehicles, which can lower maintenance costs over time.

Why It Matters: Good driver performance translates into better on-time delivery rates and lower operational costs. By using tools that track driver performance and safety, companies can identify areas for improvement and provide targeted training. Velasquez Family Coffee is an example of a company that has successfully leveraged driver performance metrics to enhance its coffee delivery operations and maintain high standards of service.

By tracking these eight last-mile delivery metrics, businesses can gain valuable insights into their operations, identify areas for improvement, and enhance their overall delivery efficiency. Whether you’re aiming to lower costs, reduce environmental impact, or boost customer satisfaction, these metrics serve as a roadmap for achieving your business goals in 2024.

If you’re ready to take your last-mile delivery performance to the next level, visit Roundtrip to learn how EasyRoutes can help you optimize your delivery operations.