8 Last Mile Delivery Metrics You Should be Measuring in 2025
Success in logistics is largely determined by a business’ ability to deliver products to customers in a timely, accurate and cost-effective manner. This makes measuring success in last mile logistics crucial to help determine how businesses can optimize their delivery processes to reduce costs and improve customer satisfaction.
Tracking key performance indicators (KPIs) for logistics enables businesses to pinpoint areas for improvement and take actionable steps to streamline last mile delivery.
Here’s a look at the key metrics you should be tracking in 2025 to stay ahead.
8 Last Mile Delivery Metrics You Need to Track in 2025
1. On-time delivery
Why It Matters:
On-time delivery measures the percentage of deliveries arriving on or before the expected date and time. A high on-time rate improves customer satisfaction, reinforces trust, and supports a positive brand reputation. Whereas late deliveries can lead to dissatisfied customers and lost revenue.
How to Improve It:
Implementing GPS tracking and route optimization tools can significantly boost on-time delivery rates. These tools allow dispatchers to monitor driver locations in real time, anticipate potential delays, and reassign routes on the fly. Additionally, automating customer notifications keeps recipients informed of delays or changes, enhancing transparency and customer satisfaction.
Pro Tip: Regularly review and adjust scheduled time windows based on historical data to better match expected delivery times.
2. Delivery accuracy
Why It Matters:
Delivery accuracy tracks the percentage of orders delivered without errors, such as wrong items or damaged products. High accuracy reduces the costs associated with returns and replacements, protects customer satisfaction, and minimizes operational disruptions.
How to Improve It:
Consider implementing barcode scanning and digital proof of delivery to reduce human error and verify correct item delivery. Training drivers on handling packages properly can also help minimize damages, especially for fragile goods.
Pro Tip: Evaluate customer feedback and analyze delivery error data to identify patterns and address recurring issues at their source, such as packaging quality or driver handling.
3. Delivery cost
Why It Matters:
Delivery cost per order is a vital financial metric, encompassing expenses like fuel, labor, vehicle maintenance, and potential third-party logistics costs. High delivery costs can directly impact a company's bottom line, making cost control essential for profitability.
How to Improve It:
Optimizing delivery routes is a major step in reducing fuel costs. Grouping deliveries by geographic proximity or time frame also helps minimize labour hours and vehicle wear. For larger fleets, integrating telematics data can provide insights into driver behavior and maintenance needs, further lowering operational expenses.
Pro Tip: Regularly review delivery costs by region, route, and driver to pinpoint high-cost areas and adjust strategies accordingly.
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4. Vehicle capacity
Why It Matters:
Capacity utilization measures how effectively the delivery fleet is used. Low utilization rates indicate wasted vehicle space and can drive up costs. High utilization ensures that each vehicle carries an optimal load, reducing the total number of trips needed.
How to Improve It:
Route optimization and demand forecasting play a large role here. Use historical data to predict volume and allocate vehicles more accurately. Load planning software can help maximize capacity by calculating the best configuration of goods within each vehicle.
Pro Tip: Reevaluate capacity planning during peak seasons or promotions to ensure vehicles are fully utilized without overloading.
5. Number of deliveries
Why It Matters:
The number of deliveries per route directly impacts delivery efficiency and cost. A higher number of deliveries per route reduces the need for additional trips, saving time, fuel, and labor.
How to Improve It:
Analyze delivery routes to consolidate orders within the same geographic area, and adjust schedules to maximize the number of deliveries per trip. Customer clustering, where deliveries are grouped by neighborhood, can also reduce travel time and increase efficiency.
Pro Tip: Use a dynamic routing tool that allows dispatchers to adjust and consolidate orders in real time based on changes in demand.
6. Fuel Consumption Rate
Why It Matters:
Fuel consumption rate reflects the fuel efficiency of the fleet and is a significant component of delivery costs. High fuel consumption can indicate inefficient routes, underloaded vehicles, or high idle times.
[Fuel Consumption Rate (FCR) = Total Fuel Used / Total Distance Traveled]
How to Improve It:
Regularly analyze and adjust routes to minimize distance traveled and idle time. Fleet management systems that monitor driver behavior (e.g., excessive acceleration or idling) can also help reduce fuel consumption by promoting fuel-efficient driving.
Pro Tip: For long-term savings, consider transitioning to fuel-efficient or electric vehicles if your routes and budget allow.
7. Delivery Time
Why It Matters:
Delivery time measures the actual time taken from dispatch to delivery. Faster delivery times are preferred by customers and often translate into higher satisfaction rates, especially in time-sensitive markets like food or medical supplies.
How to Improve It:
Use real-time tracking and route planning to reduce delays and improve estimated delivery times. Additionally, setting clear, achievable delivery windows and communicating them to customers can help manage expectations.
Pro Tip: Test various time windows to find a balance between operational efficiency and customer preference, as smaller windows often improve customer satisfaction.
8. Missed Delivery Rate
Why It Matters:
Missed deliveries, often caused by incorrect addresses, recipient unavailability, or timing issues, lead to increased costs and inefficiency. High missed delivery rates can frustrate customers and burden logistics teams with additional reattempts.
How to Improve It:
Use address verification tools to confirm delivery locations in advance. Enhance customer communication by providing estimated delivery times and enabling them to update preferences, such as safe delivery locations, if they’re unavailable.
Pro Tip: Consider adding time-sensitive reminders or allowing customers to track drivers in real time to reduce missed deliveries.
Tools for Tracking and Analyzing Delivery Metrics
GPS tracking systems
GPS tracking systems allow businesses to track the location and status of deliveries in real-time. By providing accurate location data, businesses can improve on-time delivery metrics, adjust routes to avoid traffic, and quickly identify and address delays. Driver tracking systems also allow businesses to monitor driver behavior and reduce fuel costs by identifying inefficiencies.
Delivery management software
Delivery management software helps businesses manage delivery operations, including order management, dispatching, routing and tracking. This software can automate delivery processes, reducing manual labor and increasing efficiency. By providing real-time delivery updates, businesses can improve the delivery experience. Delivery management software can also provide insights into delivery performance, allowing businesses to identify areas for improvement and optimize delivery processes.
Analytics tools
Analytics tools allow businesses to analyze delivery data and identify trends and patterns. By analyzing last mile delivery metrics such as on-time delivery, delivery accuracy and delivery cost, businesses can gain insights into delivery performance and identify areas for improvement. Analytics tools can also provide predictive analytics, allowing businesses to forecast demand and optimize delivery processes accordingly.
Best Practices for Improving Last Mile Delivery Metrics
- Set realistic goals: Businesses should set realistic goals for last mile KPIs, such as on-time delivery and delivery accuracy, based on historical data and customer expectations. Setting achievable goals helps motivate employees and provides a benchmark for measuring success.
- Establish clear communication channels: Clear communication channels between drivers, dispatchers and customers are crucial for improving last mile performance metrics. Businesses should ensure that all parties are informed of delivery status, changes, and delays in real time. This helps reduce customer frustration and improve on-time delivery metrics. One such way is using driver apps. This opens up communication between the relevant parties in real time.
- Regularly review and analyze delivery data: Regularly reviewing and analyzing delivery data is essential for identifying areas for improvement and optimizing delivery processes. Businesses should track these metrics over time and analyze trends and patterns to identify inefficiencies and opportunities for improvement.
- Utilize technology: Businesses should invest in technology, such as GPS tracking systems, delivery management software, and analytics tools, to improve delivery metrics. These tools can automate delivery processes, provide real-time updates, and identify inefficiencies and opportunities for improvement.
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Frequently asked questions
1. What are the most important last mile delivery metrics to track?
Tracking key performance indicators (KPIs) in last mile delivery is essential for optimizing logistics operations. Important metrics include on-time delivery rate, delivery accuracy, fuel consumption rate, delivery cost, and vehicle capacity utilization. Monitoring these KPIs helps businesses improve delivery efficiency, control costs, and enhance customer satisfaction.
2. How can I measure delivery performance metrics for my logistics operation?
To measure delivery performance metrics, start by tracking real-time data like delivery times, fuel usage, and vehicle capacity. Using GPS tracking and analytics software allows you to gather data on each delivery, helping you calculate metrics such as on-time delivery and fuel consumption. Consistently reviewing these metrics helps identify areas for improvement.
3. Why is monitoring delivery accuracy important in last mile logistics?
Delivery accuracy, which refers to the rate of error-free deliveries, is critical in last mile logistics. High accuracy rates lead to fewer returns, lower costs, and happier customers. Inaccurate deliveries, on the other hand, can result in lost revenue, increased return rates, and negative customer reviews, affecting overall performance metrics.
4. How can vehicle capacity metrics improve delivery efficiency?
Tracking vehicle capacity utilization helps businesses maximize the number of deliveries per trip, reducing fuel costs and improving delivery speed. By understanding how much space is utilized per delivery, businesses can plan more efficient routes, cut down on unnecessary trips, and increase operational efficiency in last mile delivery.
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