Top 20 Delivery KPIs to Elevate Your Driver Performance
By Komal Puri | October 13, 2022
Measuring Delivery KPIs for Delivery Drivers
Courier drivers are critical components to last-mile deliveries, and monitoring their performance is important for optimizing delivery efficiency. But what metrics should logistics providers be measuring to gauge driver performance? And what additional components, like vehicle or route performance, affect delivery efficiency? Below we’ll explore the top twenty delivery KPIs that logistics managers should keep an eye on to boost delivery efficiency.
Vehicle Performance KPIs
Vehicle performance is one of the most important aspects of efficient deliveries. Boosting vehicle performance has a direct impact on delivery speed, cost and customer satisfaction. Here are some of the most important vehicle performance KPIs that managers should measure:
1. Fuel Efficiency
Fuel is one of the largest costs of last-mile delivery. Fuel efficiency is a function of the vehicle itself as well as the operation of the vehicle. Managers can measure fuel efficiency by calculating the amount of fuel consumed per route, per trip, per vehicle and per driver.
2. Engine Idling Time
An idle engine is an unproductive engine. Engines typically remain on and idle when delivery drivers make delivery stops. Drivers and managers should plan routes to minimize engine idle time, which consumes fuel. Measuring idle time with delivery technology is easy.
3. Vehicle Maintenance Downtime
Maintenance downtime is the time a vehicle is out of service for maintenance. Similar to engine idle time, this is unproductive time for the vehicle and managers should look to minimize maintenance downtime wherever possible. Vehicles that have frequent or long maintenance downtime are assets that may be better served elsewhere.
4. Vehicle Breakdown Rate
This is the number of times that a vehicle breaks down in a given period of time. Once again, a vehicle that has broken down is an unproductive asset. Vehicles with high breakdown rates should be inspected further to minimize the costs in both time and money that they incur.
5. Vehicle Part Inventories
Vehicle repairs are reliant on the supply of parts that are available for maintenance. A healthy supply of parts can ensure smooth turnaround times for broken down vehicles and minimize the time a vehicle is out of service. Logistics managers should keep an eye on the often overlooked metric to ensure logistics efficiency.
Route Optimization KPIs
The possible number of routes for any delivery vehicle to take while delivering only a handful of parcels is mind numbingly large. To ensure that route networks are short and efficient, managers should look to these metrics for insight:
6. On-Time Delivery Rate
The on-time delivery rate is the percentage of deliveries that are made at or before the agreed-upon delivery date and time. This is not only critical for customer satisfaction, but for measuring the health and efficiency of you delivery network.
7. Route Adherence
This measures how closely delivery drivers follow a planned route when driving. Traffic, weather, delays, and other factors may cause drivers to meander off the assigned route. Measuring route adherence is a good way to spot inefficient areas within a delivery network.
8. Stops per Route Hour
This is a measure of the stops a delivery driver makes every hour, and is a function of the density of the delivery environment (e.g. urban vs rural) as well as the goods being delivered (e.g. parcels vs. sofas). For a given route, however, managers can measure stops per route hour over time to gauge efficiency. More stops per hour typically equates to more deliveries per hour. A high number indicates a healthy, efficient delivery route.
9. Delivery Success Rate
This is the percentage of all deliveries that are made successfully on the first attempt. Delivery re-attempts are costly and a high delivery success rate can indicate an efficient delivery network and better customer satisfaction.
Customer Service KPIs
Customers are the end of the supply chain and without them, supply chains wouldn’t exist. Their satisfaction matters. Here are a few key delivery KPIs regarding customer service that logistics managers should look out for:
10. Delivery Accuracy
This measures how accurate orders are when delivered. Do the goods delivered match the goods ordered? Are they in good condition? Were they delivered within the specified delivery window? High delivery accuracy typically leads to high customer satisfaction.
11. Customer Satisfaction Score (CSAT)
Arguably the most important customer delivery KPI, CSAT is a direct measure of customer satisfaction. Keep an eye on this number and use it as a way to inspect poor delivery experiences and look for causes and patterns.
12. On-time In Full (OTIF)
The OTIF rate measures the percentage of deliveries that are completed on-time, with all itesm in the order included in the delivery. Maximizing this number will boost customer satisfaction.
13. Delivery Complaint Rate
This is simply the frequency and nature of complaints received from customers regarding delivery services. Just keep this low. ‘Nuff said.
Time Management KPIs
They say time is money. Efficient time management can equate to efficient logistics networks. This in turn can reduce delivery costs. Here are a few delivery KPIs that relate to time management and efficiency:
14. Time at Each Stop
This assesses the duration drivers spend at each delivery location. Although dependent on delivery density (e.g. urban vs rural) and order type (e.g. parcel vs. sofa), minimizing the time at each stop can boost driver productivity.
15. Delivery Time Variance
This is a measure of the deviation between estimated delivery times and actual delivery time, or expectation versus reality. Keeping actual delivery times at or better than estimated delivery times is critical. Managers should look to minimize any variance where actual delivery times are longer than expected.
16. Route Completion Time
This is a measure of the time taken by drivers to complete their assigned routes. Drivers and managers should look to minimize this number where possible.
Safety and Compliance KPIs
Safety first as they say. An efficient delivery route doesn’t mean much if it is unsafe. Here are a few delivery KPIs managers should look out for to keep drivers, customers and others safe.
This is a measure of the speed at which delivery drivers drive their vehicles. Average speeds as well as one-off measurements can let managers know if drivers are driving too fast to remain safe.
18. Safety Violations
This is a measure of driver infractions, including traffic violations and unsafe driving practices. Managers should look to reduce these to minimize the risk of accidents, fines and increased insurance rates.
19. Hours of Service (HOS) Compliance
This is simply a measure of how long drivers have been driving for. In many jurisdictions, there are limits on how many hours or minutes a driver can drive in a day. These limits are in place for safety reasons. Managers should look to measure HOS to comply with these regulations and maximize output.
Environmental Impact KPIs
As sustainability and environmentally-friendly practices continue to become priorities for businesses, it is important for businesses to measure the environmental impact of their operations.
20. Carbon Emissions
Carbon emissions are the release of greenhouse gasses into the atmosphere, which likely contribute to global warming and climate change. Logistics managers can measure carbon emissions with today’s logistics technology platforms, and can reduce emissions using the insights these platforms generate.
How FarEye Elevates Delivery Driver KPIs
FarEye helps companies measure, surpass and action on various last-mile delivery KPIs. Below are only a few of the delivery KPIs FarEye can help your business improve:
1. On-time Delivery Rate: FarEye's route optimization engine provides drivers with the most efficient routes and real-time traffic updates, significantly boosting their ability to make on-time deliveries. This directly impacts the crucial KPI of on-time delivery rate.
2. Fuel Efficiency: The AI/ML-based route planning and optimization engine from FarEye can reduce miles driven and idling time. This improves fuel efficiency, which can reduce delivery costs and carbon emissions.
3. Route Adherence: FarEye's real-time tracking and alerts help drivers follow their pre-planned routes and alert them when unintended deviations occur, or when deviations may be necessary to reduce cost, time, etc.
4. Customer Satisfaction: With FarEye, carriers and retailers can measure customer satisfaction directly from the delivery app. Delivery drivers can also communicate directly with customers, providing real-time updates and ETAs.
5. Delivery Accuracy: FarEye's barcode scanning and proof of delivery ensure delivery accuracy. This can reduce costly re-delivery attempts and customer WISMO calls.
6. Workload Distribution: FarEye’s routing and dispatch engine ensure that vehicle capacity and driver availability are distributed evenly and maximize delivery network efficiency.
7. Performance Insights: One of FarEye’s most powerful capabilities is its ability to harness data across every part of a delivery network, turn this data into insights, and automatically action on these insights to boost efficiency across a delivery network with minimal human intervention.
8. Carbon emissions: FarEye’s delivery platform enables companies to measure the carbon emissions of every delivery. This information can be communicated to customers and can help inform logistics managers on how and where to reduce carbon emissions.
FarEye’s delivery platform is a valuable tool for companies looking to measure and boost efficiency in their last-mile delivery networks. Not only is the information provided by the platform helpful for logistics managers, it is also helpful for delivery drivers and even customers themselves. You cannot change what you cannot measure. The delivery KPIs that FarEye measures are already changing organizations worldwide and revolutionizing last-mile delivery.
Frequently Asked Questions (FAQ)
What are KPIs for delivery drivers, and why are they important?
Key Performance Indicators (KPIs) for delivery drivers are measurable metrics that assess various aspects of a driver's performance, such as on-time delivery rates, fuel efficiency, and customer satisfaction. These KPIs are crucial for evaluating driver efficiency, ensuring timely deliveries, and enhancing customer service quality.
How can I track and monitor KPIs for my delivery drivers?
You can track and monitor KPIs for delivery drivers by implementing GPS tracking systems, using route planning software, and collecting customer feedback. Modern technology and data analytics tools make it easier than ever to gather and analyze performance data.
What are some common KPIs for delivery driver safety?
Safety-related KPIs include monitoring speeding incidents, safety violations (e.g., traffic infractions), and Hours of Service (HOS) compliance. These KPIs help maintain driver safety, reduce accidents, and ensure regulatory compliance.
How do KPIs impact customer satisfaction in courier services?
Key Performance Indicators (KPIs) like timely delivery, accuracy of deliveries, and Customer Satisfaction Scores (CSAT) have a direct impact on customer contentment. When delivery drivers excel in these aspects, customers receive their orders promptly and in the anticipated condition, resulting in elevated levels of satisfaction.
What are the benefits of tracking environmental impact KPIs, such as carbon emissions, for delivery drivers?
Monitoring environmental impact KPIs is essential for sustainability and corporate responsibility. It helps reduce the carbon footprint of delivery operations, lower operational costs through increased fuel efficiency, and align with environmentally conscious customer preferences.
Tying it All Together
Supply chains as a whole and last-mile deliveries specifically are set to become a whole lot more digitized in the coming years. This digitization will pave the way for automation and efficiency. In order to get there, however, logistics managers will need to identify and measure critical areas of success through selected delivery KPIs. Doing so will set the stage for the supply chains of the future.
In a logistics industry that has already seen established carriers wiped off the map this year, staying the course in 2024 may no longer work. The most progressive, informed and agile organizations will prevail. Being able to measure critical delivery KPIs is the first step in last-mle success.
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.