6 Metrics to report on in Final Mile
In a competitive and always changing field of final mile delivery, maintaining visibility across the business to ensure efficiency is cruicial. To stay ahead, companies must track and report on key metrics that provide insights into performance, customer satisfaction, and operational efficiency. Every company needs to report on different things, but here are 6 essential metrics every final mile company should start with:
1. On-Time Delivery Rate
On-time delivery is a critical indicator of a company’s reliability, client, and customer satisfaction. This metric tracks the percentage of work that is delivered within the promised time frame. Clients prioritize on-time percentages when measuring and evaluating final mile partners. This metric should be reported on company wide, and crew specific to identify potential opportunities for improvement.
2. Claims Rate
Reporting on orders where there was a property or product claim filed allows management to start to identify patterns and trends to understand how claims arise in the first place, and where there are areas of potential improvement across a fleet. Steps to decrease the claims rate can involve taking pictures once crews arrive on-site of preexisting damage to avoid claims avoid false claims, or re-evaluating the storage and loadout process to ensure steps are being taken to avoid damage.
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3. Average Delivery Time
The average delivery time is the duration it takes for an order to be delivered to the consignee from the time it is placed in the hands of a final mile company. This metric allows companies to gauge and audit the efficiency of the entire delivery process from receiving, inventory management, and the delivery day. Good practice in utilizing this metric involves identifying top performing teams or markets, and scaling their processes.
4. Delivery Cost Per Mile
Delivery cost per mile is an essential metric final mile delivery teams for understanding the financial efficiency of the delivery process. It helps companies determine how much they spend on each mile drive, including fuel, labor, and vehicle maintenance. By analyzing this metric, companies can identify opportunities to reduce costs, such as route optimization software or changing the way work is assigned based off of financial viability.
5. NPS Score
Customer Satisfaction is a key driver of final mile success. NPS provides a direct measure of how end consignees feel about their delivery experience. This metric can be gathered through surveys sent automatically post-delivery, asking customers to rate their satisfaction. Crews with high NPS scores can be rewarded with spiffs or other recognition to reinforce winning behavors, while allowing management to identify gaps in lower scoring crews.
6. Time on site
Leveraging geofencing, management teams are able to track time on site for particular crews, services offered, and line items delivered. This is an important metric to identify who the most efficient crews are, as well as ensuring time standards assigned to jobs are accurate. Cleaner and more accurate time standards allow routes to be built with reality in mind.
