What are last mile delivery analytics?
Published on: September 4, 2023
Updated: October 4, 2023
Last mile delivery analytics refers to the data that is gathered from the last mile process of a customer’s online purchase. Internally, a logistics partner may enable their teams to track the progress of a delivery using a unique order ID number. Some use status codes that enable their colleagues to infer how the journey is progressing. Others use GPS location tracking.
One of the biggest problems with last mile delivery is a lack of transparency and communication. Due to the wide range of variables at play, it is difficult to manage expectations and provide updates. In recent years, the logistics and supply chain industries have leveraged technology to increase visibility and improve their customer experience.
Customers expect to receive personalized, real-time updates on their orders. But this is often not the case. While some logistics partners provide tracking links, their quality, accuracy, and functionality often leave a lot to be desired. As a result, consumers have ‘post-purchase anxiety.’ They worry about the order not arriving on time, missing the delivery slot, etc. So, it’s clear that there is a lot to be improved in final mile tracking, and delivery analytics help retailers do so.
What are the use cases for last mile delivery analytics?
Last mile delivery analytics can be applied to various industries to improve delivery processes and customer experience. The different use cases include:
- Ecommerce: This industry uses analytics to track the delivery of goods and services from the warehouse to the customer’s doorstep.
- Logistics and transportation: To improve the delivery of packages, the logistics and transportation industry collects data on traffic patterns, weather conditions, and other variables that can affect delivery times. This way they can adjust their delivery routes and schedules to ensure proper delivery.
- Healthcare: In this industry, analytics are used to track the delivery of medical supplies and equipment. Healthcare providers ensure that critical equipment is available when it is needed by analyzing these analytics.
- Retail: Similar to the ecommerce industry, retail uses last mile analytics to track the delivery of products to stores and customers. When retailers analyze delivery times, routes, and customer feedback, they can improve their delivery processes and improve their customer experience.
What are some examples of last mile delivery analytics?
Looking at key metrics can help retailers better understand their last mile performance. Here are some key performance indicators that logistics professionals can look at:
- Perfect Order Delivery Rate: The number of orders that are delivered to the right place with a complete order that is damage free and has all the correct paperwork included. While it’s not common to reach perfection, it’s a good indicator to monitor over time to understand the effectiveness of improvements or quickly identify any troubling trends.
- Customer Order Cycle Time: The measurement of time from the moment the order is placed until the item is delivered. That includes processing, packing, and shipping. It can be further broken down to each of these phases to get a good feel for how much time each takes and where refinements can be made.
- On-Time Delivery: the number of orders that arrive at the final destination at the right time. While late deliveries typically get more bad press, early deliveries can also cause customer frustration. If a customer is not home to receive a package and then has to reschedule a delivery or pick-up it up elsewhere, it can impact satisfaction and drive up customer service contacts.
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