The Metrics That Matter: How to Track Delivery Performance

Why Delivery Metrics Are Essential

In last-mile delivery, speed and efficiency aren't enough—what gets measured gets improved. Businesses that track the right delivery performance metrics gain a competitive edge, optimizing their operations, reducing costs, and improving customer satisfaction. But with so much data available, which metrics really matter?

1. On-Time Delivery Rate (OTD)

Definition

Number of deliveries completed on or before the estimated delivery time.

Why It’s Important

Late deliveries don’t just frustrate customers—they increase refund requests, hurt brand loyalty, and raise operational costs.

How to Use This Metric

• Benchmark your OTD: The industry standard is typically 90-95% for last-mile delivery. If your rate is lower, analyze where delays occur.
• Break it down by time of day, route, or driver: Are morning deliveries more on time than evening ones? Are some areas experiencing frequent delays?
• Use route optimization tools: If your drivers regularly miss delivery windows, adjust scheduling to avoid peak traffic or batch deliveries better.

Pro Tip: OTD isn’t just about speed—it’s about accuracy. If customers expect a 2-hour window, meeting that is more important than shaving minutes off total delivery time.

2. First-Attempt Delivery Rate

Definition

The percentage of deliveries successfully completed on the first attempt.

Why It’s Important

A failed first attempt means redelivery costs, wasted fuel, and unhappy customers. Studies show that a missed first delivery attempt costs businesses an average of $17 per failed delivery.

How to Use This Metric

• Track reasons for failed deliveries: Was it an incorrect address, customer unavailability, or a delivery window mismatch?
• Use pre-delivery notifications: Many businesses reduce failed attempts by sending SMS or email alerts before a driver arrives.
• Offer flexible rescheduling options: Letting customers pick time slots increases first-attempt success.

Pro Tip: If your first-attempt success rate is below 85%, consider adding a preferred time slot feature at checkout or enabling real-time address verification.

3. Average Delivery Time

Definition

The average time from order dispatch to final delivery.

Why It’s Important

Customers expect fast but predictable delivery. A shorter average delivery time means:

• Lower fuel costs
• Faster order turnover
• Higher customer satisfaction

How to Use This Metric

• Compare against industry benchmarks: For meal deliveries, a sub-30-minute window is standard. For general eCommerce, same-day or next-day fulfillment is key.
• Track delays by location: Urban vs. rural routes may have significantly different delivery times.
• Analyze seasonal trends: Delivery times often spike during holidays or peak demand periods—plan accordingly.
• Analyze delivery performance by provider: Compare Avg. Delivery Time by Provider to identify which partners perform best.

Pro Tip: Instead of focusing only on reducing average time, balance speed with reliability. Fast deliveries mean nothing if they result in errors or poor customer experiences.

4. Cost Per Delivery

Definition

The total cost of fulfilling one order, including driver wages, fuel, and overhead.

Why It’s Important

Without tracking cost per delivery, businesses risk hidden inefficiencies that eat into profit margins.

How to Use This Metric

• Break down costs by category: Fuel, labor, vehicle maintenance, and software fees all contribute.
• Compare costs across providers: Analyze which delivery partners are most cost-effective.
• Identify waste: If per-order costs are rising, is it due to inefficient routing, unnecessary empty return trips, or poor driver utilization?
• Optimize for volume: Higher delivery volumes may reduce per-order costs through economies of scale.

Pro Tip: A target cost per delivery of $8-$12 is considered optimal for many industries, but this varies. The key is understanding where the money is going and eliminating inefficiencies.

5. Delivery Success Rate

Definition

The percentage of initiated orders that are successfully delivered without cancellations, reroutes, or failures.

Why It’s Important

A low success rate means something is broken—whether it’s incorrect addresses, reroutes, or customer dissatisfaction.

How to Use This Metric

• Monitor success rates by region: Some areas may have higher cancellation rates due to address accuracy issues or unreliable providers.
• Track failure reasons: Analyze why deliveries fail (e.g., provider cancellations, customer refusals, or incorrect addresses).
• Improve address accuracy: If address-related failures are common, consider address verification at checkout.
• Enhance communication: Proactive customer notifications help prevent missed deliveries.

Pro Tip: Success rate should be above 95%. If yours is lower, identify failure patterns and address them systematically.

6. Customer Satisfaction Score (CSAT)

Definition

A post-delivery rating measuring customer satisfaction.

Why It’s Important

Even if internal delivery metrics are strong, a low CSAT score signals underlying customer pain points.

How to Use This Metric

• Look beyond just star ratings: Read customer feedback for trends.
• Correlate with operational data: Are low CSAT scores tied to late deliveries or frequent reroutes?
• Act on feedback: If multiple customers complain about the same issue, it’s time to fix it.

Pro Tip: CSAT above 4.5/5 is considered strong. If your score is dropping, review your last-mile experience and improve where possible.

7. Reroute Rate

Definition

The percentage of deliveries that require last-minute changes due to unexpected issues such as address errors, provider delays, or traffic disruptions.

Why It’s Important

A high reroute rate signals inefficiencies—whether it’s drivers being reassigned mid-route, traffic delays, or incomplete customer information.

How to Use This Metric

• Pinpoint high-reroute areas: Certain regions may consistently require more reroutes, signaling issues like inaccurate addresses or unreliable provider coverage.
• Analyze provider performance: Assess whether specific delivery partners struggle with meeting original routing plans.
• Enhance order accuracy: Strengthen address validation at checkout and offer real-time customer confirmation options to minimize rerouting.
• Optimize driver assignments: Frequent mid-route changes may indicate inefficient driver dispatching or poor scheduling.

Pro Tip: If your Reroute Rate exceeds 10%, it's a sign that adjustments are needed in routing logic, customer input validation, or provider selection to ensure smoother deliveries.

Final Takeaways: How to Use These Metrics Effectively

Tracking delivery performance metrics isn’t just about gathering data—it’s about using insights to refine operations, reduce costs, and create a better customer experience.

• Benchmark your numbers against industry standards
• Identify weak spots and take targeted action
• Refine processes over time using real-time data

Mastering last-mile delivery is about consistency, efficiency, and adaptability—and it all starts with measuring what matters.