Last-Mile Delivery Metrics (Last Mile Process Part 2)

Why Metrics Matter in Last-Mile Delivery

The last-mile delivery process is one of the most expensive and complex parts of the supply chain. Without accurate tracking and performance measurement, businesses risk inefficiencies, high costs, and customer dissatisfaction. The right metrics help companies:

• Identify bottlenecks and inefficiencies
• Optimize delivery speed and costs
• Improve customer experience and retention
• Ensure profitability and sustainability

What Are Most Popular Delivery Companies for Retailers

Key Last-Mile Delivery Metrics

1. On-Time Delivery Rate (OTD)

Definition: The percentage of deliveries completed within the promised time window. Why It Matters: Directly impacts customer satisfaction and loyalty. High OTD rates reduce refund claims and negative reviews. Helps businesses benchmark performance against industry standards.

2. First Attempt Delivery Success Rate

Definition: The percentage of orders successfully delivered on the first attempt without requiring rescheduling. Why It Matters: Reduces additional delivery costs and operational inefficiencies. Improves courier productivity by minimizing re-attempts. Enhances customer convenience and trust in the service.

3. Average Delivery Time

Definition: The time taken to complete a delivery from dispatch to customer drop-off. ​Why It Matters: Directly affects customer expectations, especially in same-day or instant delivery models. Helps optimize delivery routes and fleet performance. A lower average delivery time indicates operational efficiency.

4. Cost Per Delivery

Definition: The total expense incurred to complete a single delivery. Why It Matters: Determines profitability and cost-effectiveness of the delivery model. Helps compare in-house delivery vs. third-party logistics (3PL) costs. Businesses can use this data to optimize pricing and cost-reduction strategies.

5. Order Accuracy Rate

Definition: The percentage of deliveries that are fulfilled correctly without missing or wrong items. Why It Matters: Reduces the cost of returns and re-deliveries. Enhances customer trust and brand reputation. Improves overall operational efficiency by minimizing errors.

6. Failed Delivery Rate

Definition: The percentage of orders that were not delivered due to customer unavailability, address issues, or courier errors. Why It Matters: Helps identify and address recurring issues in logistics. Reduces wastage of resources and enhances efficiency. Businesses can use this metric to refine customer communication and delivery coordination.

7. Customer Satisfaction Score (CSAT)

Definition: A rating given by customers based on their delivery experience. Why It Matters: Provides insights into overall delivery service quality. Helps businesses address pain points in the last-mile experience. A higher CSAT score directly correlates with customer loyalty and retention.

8. Route Optimization Efficiency

Definition: A measure of how well delivery routes are optimized to minimize distance, time, and cost.
Why It Matters:
Reduces fuel costs and carbon footprint.
Enhances fleet productivity and resource allocation.
Improves delivery speed and efficiency.

9. Vehicle Utilization Rate

Definition: The percentage of time delivery vehicles are actively used versus being idle. Why It Matters: Helps maximize fleet efficiency and minimize downtime. Optimizes logistics planning and resource distribution. Reduces unnecessary fleet expansion costs.

10. Environmental Impact Metrics

Businesses focusing on sustainability must track:
CO₂ Emissions Per Delivery: Measures carbon footprint per order.
Fuel Efficiency: Tracks fuel consumption per delivery.
Green Delivery Adoption Rate: Percentage of orders fulfilled using eco-friendly vehicles or delivery modes.

How Delivery Management Software (DMS) Helps Improve These Metrics

Using a Delivery Management Software (DMS) like Yango Tech’s Last Mile Solution helps businesses optimize these key metrics through:

• Real-Time Tracking: Enhances visibility into deliveries and courier performance.
• Automated Dispatching: Ensures efficient courier assignment and reduces idle time.
• AI-Powered Route Optimization: Lowers fuel costs and delivery times.
• Data Analytics: Provides actionable insights to improve delivery operations.

  

How Order Picking Speed Affects Last-Mile Delivery Performance

Order picking—the process of retrieving items from inventory to fulfill an order—is a crucial step in the supply chain. A slow picking process delays dispatch times, leading to longer delivery windows, increased costs, and poor customer experiences.

How slow picking impacts last-mile logistics:

• Increased delivery times due to late order preparation.
• Higher labor costs as couriers wait for orders.
• Lower first-attempt delivery rates when dispatch windows are missed.

On the other hand, businesses that optimize order picking can speed up fulfillment, leading to faster deliveries, lower costs, and better customer retention.

Key Metrics to Track for Order Picking Efficiency

1. Order Picking Accuracy Rate

Measures how often items are picked correctly on the first attempt. Why It Matters: Incorrect orders result in delays, returns, and re-deliveries, increasing costs. ### 2. Average Order Picking Time Tracks the time required to pick and prepare an order for dispatch. Why It Matters: The faster an order is picked, the quicker it can be dispatched. ### 3. Warehouse-to-Dispatch Time Measures the time between picking completion and when the order leaves for delivery. Why It Matters: Delays in moving orders to couriers slow down last-mile delivery.

What Is the Best Delivery Management Software?

The best delivery management software depends on business needs.
Yango Tech Retail offers Last Mile Solution, which offers real-time tracking, automated dispatch, and AI-powered optimization.

To find out a full process for efficient delivery management, watch our 30-minute expert workshop here: Build A Winning Last-Mile Process

Tracking last-mile performance metrics, optimizing order picking, and using delivery management software can significantly reduce costs, improve efficiency, and boost customer satisfaction. By leveraging the right tools and data, businesses can enhance last-mile logistics and stay competitive in a rapidly evolving market.