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Top 20 Delivery KPIs to Elevate Your Driver Performance

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By Komal Puri | October 13, 2022

Measuring Delivery KPIs for Delivery Drivers

Drivers performance plays a vital role in successful last mile deliveries. Now, what’s more important is “How to monitor and track this performance?”. There are numerous delivery KPIs that logistics companies use to analyze and monitor this aspect.

In this blog, we will discuss them by category in detail so you can use them for performance optimization and provide your customers with a better delivery experience.

Let’s begin!

Importance of Monitoring KPIs

Logistics KPIs are used to identify different stages in the flow of goods that require improvement. By tracking these consistently, businesses can identify the aspects of the delivery process that can be improved. So, you can save on some costs as well! To set up logistics KPIs, decide your goals and work hard to improve them through the KPIs monitoring.

Vehicle Performance KPIs

Do you know what is the most important aspect of efficient deliveries? Vehicle performance! It has a direct impact on the delivery speed, cost and customer satisfaction. 

We have got you some vehicle performance KPIs that must be measured regularly. 

1. Total Vehicle Breakdown Rate 

Vehicle breakdowns can happen for several reasons, such as accidents or other malfunctions. However, these must be avoided because they reduce the fleet’s efficiency, making the vehicle more prone to breakdowns. If you want to minimize these, monitor total vehicle breakdowns and accordingly evaluate the fleet operations. 

2. Vehicle Part Inventories

Inventory levels tracking and prioritizing the requirement of parts is very important. For what? To minimize the vehicle downtime and maximize FTFR (First Time Fix Rate). Also, it helps in reducing the stock of unnecessary parts.  

3. Fuel Consumption 

Fuel consumption is one of the most important expenses of the fleet that can not be avoided in the worst-case scenario. But yes! If it is inevitable, different strategies help in lowering the costs.  

4. Vehicle TCO (Total Cost of Ownership)

This KPI measures vehicle ownership costs, such as 

  1. Initial costs, 

  2. Maintenance, 

  3. Fuel consumption, and 

  4. Licensing fees  

5. Excessive Idling

An idle engine is unproductive, but some drivers do not understand this and leave the vehicle’s engine idle for longer, especially at delivery stops. You can reduce idle time and maximize fuel efficiency by tracking this KPI. 

6. Engine On / Off

Running an engine is not required during the loading or unloading of the products. When the drivers start the engines later, they leave behind the delivery schedule and drive the vehicle in a rush, which may result in accidents. 

7. Vehicle Maintenance Downtime

Vehicle maintenance downtime is the time your vehicle is out of service for maintenance. Similar to engine idle time, this is also very unproductive. That's why proper measures must be taken to minimize maintenance downtime wherever possible. 

Route Optimization KPIs

The number of possible routes taken by a delivery vehicle is enormous. To ensure that route networks are short and efficient, track the route optimization KPIs below. 

1. On-time Delivery Rate 

The on-time delivery rate measures the number of deliveries made upon the promised date and time. This metric is used to measure the efficiency of the supply chain and reveals the effectiveness of delivery services. 

2. Route Adherence

This KPI demonstrates how effectively your delivery personnel is following the schedule. Unforeseen situations, such as traffic, weather conditions, and other factors, become a hindrance, so tracking this will help spot the inefficient areas within a delivery network.

3. Delivery Success Rate / First Attempt Delivery Rate 

The delivery success rate is the percentage of all deliveries that are successfully completed on the first attempt. A high delivery success rate indicates an efficient delivery network and improves customer satisfaction. Delayed or delivery re-attempts result in slowed supply chain processes and increased costs. 

4. Stops per Route Hour

Stops per route hour is a measure of the stops a delivery driver makes every hour. It is a function of the delivery density environment (e.g. urban vs rural)and the delivered goods. (e.g. parcels vs. sofas) The higher number of stops results in more deliveries per hour and indicates an efficient delivery route. 

Time Management KPIs

There is a saying that “Time is Money!” In the logistics industry, efficient time management is equal to efficient logistics networks, which results in reduced delivery costs. Below are the delivery KPIs related to time management and efficiency.

1. Delivery Time Variance

Delivery time variance calculates the deviation between estimated and actual delivery times.

2. Route Completion Time

This is the time the delivery personnel takes to deliver the products through assigned routes. The number should be minimized as much as possible.

3. Time at Each Stop

This delivery KPI measures the time drivers take at each delivery stop. The higher the time, the lower the efficiency. You can use route optimization software to upgrade the planning of routing schedules.

4. Out-of-Route Miles

Sometimes, drivers do not take the designated route for order delivery, which may be intentionally, or they struggle to find the location. You can track the out-of-route miles to track this aspect.

Customer Service KPIs

Customers are the real reasons behind the existence of supply chain activities. So, how can we forge them? Here are a few key delivery KPIs regarding customer service that businesses should look for to provide their users with a better shopping experience.

1. Customer Complaints Rate

Customer satisfaction should be the priority for every business, which can be tracked by this KPI, i.e., customer complaints rate. Simply put, it will be the frequency or number of customer complaints you receive regarding the delivery services.

2. On-time In Full (OTIF)

The OTIF rate measures the percentage of shipments that are delivered according to a specified quantity and schedule. Simply put, it represents how frequently customers get the product they ordered. This is a crucial metric to track as users often receive different products from what they typically ordered.

3. Delivery Accuracy

The delivery accuracy KPI measures order accuracy. For instance, if the delivered goods matched the ordered goods and were delivered timely. High delivery accuracy results in successful order completion and high customer satisfaction.

4. Customer Satisfaction Score (CSAT)

One of the most critical customer delivery KPIs, CSAT, measures customer satisfaction. You can track this number to inspect poor delivery experiences and look for ways to improve them.

Safety and Compliance KPIs

Safety comes first, so the safety and compliance KPIs below will help you track the safety of your drivers and customers.

1. Speeding

Speeding is used to track the speed at which delivery drivers drive their vehicles, which can be done by GPS tracking and speed monitoring devices. You will get notified when the drivers drive too slow or above a restricted speed.

2. Safety Violations

This KPI measures driver infractions, including traffic violations and unsafe driving practices. Tracking this KPI consistently minimizes the risk of accidents, fines and increased insurance rates.

3. Hours of Service (HOS) Compliance

“Hours of service”, as specified by the Federal Motor Carrier Safety Administration (FMCSA), refers to the time the driver can devote to their duty. Simply, it measures how long drivers have been driving. For safety reasons, there are limits on how many hours or minutes a driver can drive daily. However, some exceptions must be considered, such as emergencies, adverse driving conditions, etc.

Environmental Impact KPIs

To protect our mother earth, businesses need to measure the environmental impact of their operations on the environment through the below KPIs. 

1. Carbon Emissions

Carbon emissions are the greenhouse gases released into the atmosphere, leading to global warming and weather change. The companies must track this KPI to reduce carbon emissions that happen due to their delivery operations. 

2. Waste Reduction 

Waste reduction helps track areas of improvement to minimize waste generation, optimize resource utilization, and reduce environmental impact. It also results in cost savings and meeting regulatory compliance requirements. 

How Fareye Can Help You Elevate Delivery Driver KPIs

Our delivery logistics platform helps companies measure various last-mile delivery KPIs. Below are the ones that you can track to improve the delivery processes. 

  • On-time Delivery Rate: Fareye’s route optimization software provides drivers with the most efficient routes and real-time traffic updates. This boosts their ability to make timely deliveries and impacts the on-time delivery rate for good reasons. 

  • Fuel Efficiency: Our AI/ML-based route planning and optimization engine reduces the miles driven and idling time. As a result, fuel potency will be improved, and delivery costs will be reduced. 

  • Workload Distribution: To maximize the delivery network efficiency, FarEye’s routing and dispatch engine ensure that vehicle capacity and driver availability are distributed evenly. 

  • Route Adherence: Our platform’s real-time tracking alerts help drivers follow their pre-planned routes and notify them when deviations occur. 

  • Delivery Accuracy: Fareye’s platform ensures delivery accuracy. How? Its barcode scanning and proof of delivery reduce costly re-delivery attempts, resulting in enhanced accuracy. 

  • Performance Insights: This is one of the most powerful capabilities of our platform,i.e., the ability to generate real-time performance insights. With minimal human intervention, you can keep track of these insights and use the data to boost efficiency across the whole delivery network. 

In a nutshell, FarEye’s delivery platform can be an all-in-one tool for companies looking to measure and boost efficiency in their last-mile delivery networks. The provided information will be helpful for all the involved individuals in the process, including logistics managers, drivers, and customers.  

Conclusion

There are several delivery KPIs that you can track to elevate your driver performance and measure critical areas of success. By doing so, companies can set the stage for the supply chains of the future. And the most progressive, informed, and agile organizations will win in this.

Frequently Asked Questions (FAQ)

1. What are delivery drivers KPIs and their importance?

Key Performance Indicators (KPIs) for delivery drivers measure various aspects of their delivery performance, such as on-time delivery rates, fuel efficiency, delivery accuracy, etc. The KPIs help in several aspects, such as

  • Evaluate driver efficiency,

  • Ensure timely deliveries,

  • Enhance customer service quality.

2. How can a business track and monitor the delivery KPIs?

Various tracking systems can be used to track and monitor the delivery KPIs, including GPS tracking systems and software for route planning. Performance data collection and analysis have become much more straightforward, all credit goes to technological advances and data analytics tools.

3. What is the impact of measuring KPIs on customer satisfaction in delivery services?

Customer Service KPIs directly impact customer satisfaction, such as

  • Timely delivery,

  • Accuracy of deliveries and

  • Customer Satisfaction Scores (CSAT).

When drivers correctly adhere to these aspects, customers receive their orders promptly and in good condition, resulting in enhanced levels of customer satisfaction.

4. What are the KPIs for delivery personnel safety?

The common KPIs for delivery personnel safety and reducing the risk of accidents include

  • Speeding incidents,

  • Safety violations (e.g., traffic infractions), and

  • Hours of Service (HOS) compliance.

5. What are the benefits of tracking environmental impact KPIs?

There are several benefits associated with tracking environmental impact KPIs.

  • Reduce the carbon footprint of delivery operations

  • Lower operational costs through increased fuel efficiency

  • Aligns perfectly with the preferences of environmentally conscious customers.

Komal puri

Komal Puri is a seasoned professional in the logistics and supply chain industry. As the Senior Director of Marketing and a subject matter expert at FarEye, she has been instrumental in shaping the industry narrative for the past decade. Her expertise and insights have earned her numerous awards and recognition. Komal’s writings reflect her deep understanding of the industry, offering valuable insights and thought leadership.

Komal Puri
Sr. Director of Marketing | FarEye

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