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Logistics Strategy: What Are On-Time Delivery Metrics?

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On-time delivery metrics are crucial if you want to measure how efficient your company’s supply chain is. These metrics determine whether your business is meeting your delivery targets.

You need to track these metrics to stay on top of carrier performance and customer satisfaction. Otherwise, poor customer experience can negatively impact your brand’s reputation. If you fail to make deliveries on the promised dates, you risk customers losing trust in your business.

Here are the most essential metrics to track to enhance the online shopping experience. Then, you will have an easier time retaining customers.

On-Time Delivery Metrics

There’s an easy way to calculate your on-time delivery metrics.

All you need to do is compare the total number of deliveries made by the company to the number of delayed deliveries. Then, you can get a formula to measure this KPI.

Your delivery metrics will be the percentage of success and failure.

Average On-Time Delivery KPI

This metric will effectively provide a long-term average for your on-time delivery rate.

So, to calculate the year’s average rate, you must add the monthly metrics. Then, this needs to be divided by the total number of months.

Order Preparing KPI

This KPI will provide valuable insight into the delivery rate dispatched on time. So, you can break this metric down to analyze crucial info regarding labeling, loading, and packaging time to speed up deliveries.

Delivery Time KPI

This KPI will measure how long your packages take to deliver to customers.

With this metric, you can significantly enhance customer experience by understanding the kinks in your delivery process. Then, you can correct mistakes that obstruct deliveries to exceed customer expectations.

Time to Base KPI

This essential metric will determine how long your drivers take to complete deliveries before returning to the fulfillment center. You can gain valuable insights into drivers and their availability to plan your deliveries timely.

Time to Destination KPI

This KPI metric will help you track the time your drivers take to find the correct delivery addresses. This way, you will have a better understanding of drivers’ needs.

It is beneficial if they need more time to deal with customers and understand how that affects their route and schedule.

Driver Performance KPI

Every logistics business must track delivery efficiency and the performance of its drivers. You can also use route optimization software to track traffic and route problems during deliveries.

Then, you can always find the shortest distance possible to maximize efficiency.

Inefficient employees can be retrained early on to bump up their performance KPI. Then, your business can rectify the problems sooner instead of losing money on late orders.

Check out transport management systems for more information on software integration to simplify logistics.

Customer Satisfaction KPI

When you measure this KPI, you can track how happy your customers are with your order fulfillment methods.

Your responsibility as a business is to collect consumer data while responding to poor metrics. Then, you can significantly improve operations for order fulfillment to make customers more loyal to your brand.

Track the Right Metrics

Now that you know some of the most essential on-time delivery metrics, it is time to become more efficient.

Understanding these figures helps to set real-time updates on the performance of drivers. Then, you can maintain these metrics on a scorecard to offer bonuses and incentives to those who exceed their targets.

If you enjoyed reading this customer experience guide, check out our other posts.

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