How Last Mile Delivery Helps your Business
The worldwide logistics business has undergone a tremendous change because of the creation and expansion of different e-commerce platforms.
Logistics service providers like us are not dependent on the old techniques of paper-based documentation, manual data inputs, or telephonic cargo tracking. Instead, we’ve begun to use digital technology to develop flexible processes, boost supply chain productivity, differentiate themselves from the competition, and increase operational efficiency.
Thus, the global value of the logistics sector has already surpassed $5.5 trillion. It is predicted to expand by about 7% in 2022.
Logistics firms have begun to assess their performance in terms of cost, accuracy, utilization, and timeliness to consolidate such critical upswings. Not only has this allowed them to have a more objective perspective of their entire logistics operations, but it has also allowed them to save costs, eliminate mistakes, improve accountability, and improve last-mile services & deliveries.On-Time Delivery:
In last-mile logistics, the number of on-time felt or late deliveries is more significant than any other indicator. These Metrics enable a rapid yes or no assessment of your last-mile logistics strategy’s performance.
The delivery time is regarded as one of the most important KPIs in last-mile logistics. It is because the ultimate delivery time provides a more comprehensive picture of your complete delivery strategy’s operational efficiency and efficacy. As a metric, the delivery time can be worked out by averaging the total time taken to complete every order within a single day.
Rates of Fuel Consumption:
Last-mile measures regarding fuel consumption rates vary and are dependent on the company’s preferences, but how fuel consumption rates are computed has a significant impact on whether a driver is saving or squandering gasoline.
For example, overall fuel consumption costs may be lower, but interval-based fuel consumption rates could show consistent stopping and starting patterns that do not coincide with existing routes and drive up fuel costs. As a result, fuel consumption rates should be estimated by averaging total fuel expenses across all drivers, delivery vehicles, and routes.
Vehicle Capacity Used vs. Available in the Last Mile:
Last-mile logistics should compare the capacity used to the available capacity in all last-mile delivery vehicles. The available capacity is divided by the total capacity to arrive at this measure. Excessive available capacity rates indicate inefficient loading operations or the need to consolidate routes. The capacity utilized is calculated by dividing the capacity used by the overall capacity.
Actual vs. Planned Mileage:
Last-mile metrics based on planned versus actual mileage are produced by dividing the actual distance per vehicle, driver, or route by the route’s scheduled mileage. Higher actual mileage rates indicate route planning issues or unexpected deviations from route schedules.
In-Motion and Stationary Driver Hours:
Last-mile logistics costs include in-motion and stationary driving hours, and unless your organization uses a fully autonomous and drone-assisted delivery network, pauses are required. The number of stops and hours spent in both moving and stationary positions, on the other hand, can be used to assess a driver’s performance. Excessive time spent stationary or in motion. The total time drivers spend on a route is divided by the number of hours in motion and the number of hours stationery to arrive at these figures.
Per-item, per-mile, and per-vehicle costs:
Last-mile metrics should measure the cost per item, per mile, and per vehicle for a given route and the entire firm. As a result, shippers should average overall expenses per item for a specific path and for the whole company’s shipments over time. Both mileage and per vehicle metrics should be averaged using the same method.
No. of Stops:
There should be tracking for the number of stops per vehicle in last-mile logistics and analytics. It is helpful to track gasoline expenses, but it can also indicate poor route planning. To put it another way, vehicles that make a lot of stops should be reevaluated to see if there are any methods to optimize route scheduling.
Service Time on Average:
Because it needs various data to compute based on the source of an order, the average Service time measure can be complicated. The most typical method is to divide the entire store service time by the total number of deliveries.
Complaints by Customers:
The need to manage customer service and address customer complaints leads to another metric in last-mile logistics, reports Talking Points With Adrian Gonzalez. How does the overall number of customer complaints compare to the total number of deliveries? The complete number of deliveries is divided by the number of complaints received to arrive at this figure.
Accuracy of Order:
Order accuracy is determined by comparing known order errors to all delivered orders. It’s tough to measure a precise order inaccuracy metric since some customers may never report incorrect orders. Shippers should instead calculate order accuracy rates by dividing the total number of shipped orders by the number of orders that were not subject to customer service disputes, calls, or complaints.
You must ensure that the packed order fulfills the parameters of the client’s need before your purchases are dispatched. If it doesn’t, you’ll find yourself embroiled in a slew of unwarranted complaints and disputes. Order accuracy is calculated by dividing the number of sent orders by the number of complaints-free deliveries.
Claims for Damage:
Last-mile indicators to watch include issues with orders and damage claims. Shippers should keep track of the number of damage claims received versus the overall number of shipments. It is derived by dividing the complete number of shipments by the number of damaged claims. The resultant number is a numerical representation of the proportion of damage claims.
Shippers may improve last-mile logistics by using metrics:
Shippers may use metrics to understand last-mile logistics and can use metrics to compare the performance of last-mile logistics plans to actual procedures and costs. As a result, shippers can make changes to their operations to improve last-mile services through last-mile metrics, and learning more about last-mile needs is key to supplying more than just the standard last-mile delivery options.