5 Delivery KPIs you cannot afford to miss
In the current digitally powered era, data is a critical resource. Why? Because data directly impacts business. Delivery dashboards with statistical data insights can be a powerful tool in optimizing your delivery experience. Invaluable data on logistics performance, field agent performance, customer satisfaction can lead to an excellent business transformation.
Within your delivery operations supply chain, which is a complex area of discussion, monitoring data insights could unlock great potential value. However, which data to monitor largely depends on the delivery KPIs that need to be measured.
Let’s understand some important delivery KPIs, that if rightly tracked, can transform your delivery experience and impact:
1) Customer satisfaction metrics
Do you have an insight into your customer satisfaction score? Do you measure this important KPI that has the most significant impact on your delivery business and profits? Are your customers happy with the way you fulfill the orders?
Companies fail to track how the customer feels at every stage of their delivery order fulfillment. For every online shopper, the final delivery hands determine if he comes back to you for more orders or not. This includes the way companies fulfill the delivery to meet customer expectations.
Many factors may impact your customer response, and 3PL players usually fail to provide you the customer side story. Companies need to collect data about customers to see what is doing well and what needs to change in delivery fulfillment. May be a certain delivery partner is not able to maintain his ETA or is not communicating with the customer when required. Maybe the customer is thinking poorly about your delivery fulfillment, and without this data you as a company can never know what and how to improve your delivery management.
Hence, properly collecting and aggregating customer data is vital for any delivery business to ensure your delivery system performs well, and your final customer is happy.
2) Tracking driver performance
Drivers/Riders are the main resources who actually facilitate the entire delivery process and, in fact, impact the success of your delivery management system. A lot of your delivery efficiency depends on how your drivers and riders perform on the field. This requires deeper insight than just basic location tracking in the form of deviation reports. How and where are your drivers spending their time at every delivery level? This is a critical metric. With route optimization tools, a lot of time can be saved to ensure timely deliveries. Delays due to traffic are beyond control, but live driver tracking helps you find out how much time is the driver spending on things like loading, on-site, on break, in the warehouse, etc.
KPIs related to driver data can help teams provide more accurate delivery windows and ensure that more deliveries occur on time. This has a direct impact on your customer happiness index. If drivers arrive on time to deliver without getting late, the customer is also happy, resulting in repeat business.
3) Monitoring fleet data
With businesses growing beyond boundaries, delivery management has also become more expansive in nature. Businesses are catering to customers spread across multiple regions, which requires multiple fleet management. There is a strong consolidation happening in the fleet sector, especially in the third-party fleet space.
The fleet mix a company uses for its delivery management also has a bearing on the cost. Especially when it comes to 3PL players, their value creation differs in different areas. The same 3PL fleet provider may provide exceptional delivery in one area and a poor experience in another region. A company needs to monitor this deviation to leverage the best fleet mix beneficial to its delivery experience.
Some of the important KPIs that should be used to compare fleets include driver time, time on site, average delivery time (considering average delivery distance), operational costs, and most importantly, customer satisfaction rating.
4) Revenue metrics across the board
Another critical metric to evaluate is how your delivery performance affects revenue. Creating a visual dashboard that highlights revenue with delivery times per region and customer satisfaction will provide an interesting insight to executives. The drill-down approach enables executives to discover how a specific store or a particular type of fleet performs and its impact on business revenue.
Every component of your delivery management impacts your revenues – be it store, fleet, the rider. Comparing revenue metrics across the board helps to gauge what must be improved to make revenue stable and what needs to be tweaked or weeded out. This also helps to understand the difference in revenue attribution from in-store purchases versus online deliveries. Without tracking delivery KPIs, this important stock of data can be simply overlooked.
5) Data on POC efficacy
Measuring the efficacy of your Proof of Concepts can significantly influence the success rates of a scaled-up delivery operation. Equip your POC with data measurement capabilities that will help in evaluating its success ratio. Relevant KPIs to track are those related to operational efficiency and performance: on-time delivery, auto dispatch rates, loading time, time on site, orders per driver, and more.
Also one important KPI to track at the POC stage is to measure the actual adoption rates by the people in the field. Despite all the impeccable planning by the executive team, if your drivers and dispatchers don’t use a POC system as planned, then the data from it – and KPIs based on that data – will be inaccurate, hampering the potential success of the field solution.
How does this POC data help? If the POC has low adoption rates, then you can find out what’s wrong with your implementation and fix it in time, before going for a full scale up.
The benefits of measuring business data are several and very powerful. Analyzing your delivery KPIs will not just verify the best performing spots but also highlight the shortcomings. This helps businesses to take corrective action in time.
Valuable data insights empower the right decision making, and this is key to business. The right level of data-driven visibility has a three-pronged impact – on internal efficiency, customer satisfaction, and, most importantly, your bottom line.
Want to scale up the efficiency of your delivery operations? Define your KPIs, measure the data, and clearly visualize it on the dashboard to stay ahead on the curve.
Explore how Dista last mile delivery management can help you measure, track and improve delivery KPIs.