8 Practical Ways To Improve Delivery Efficiency

Operational efficiency is critical to the success of any last-mile delivery business. In this article we offer eight practical strategies for improving delivery performance. Whether you're just starting out or trying to manage growth, these tips will help you improve your delivery processes, your customer satisfaction and your profitability! 

1. Identify and track your key metrics

As the old saying goes, you can’t manage what you don’t measure. So identify the performance metrics that are most important to your business, and track them monthly, weekly or even daily. That way, you’ll know when you’re getting better  — or when you need to try something different to increase delivery efficiency. 

Here are some of the most common delivery performance indicators you might want to track: 

a. Total number of deliveries

How many deliveries do you make per day, week or month? This is the base metric on which everything else is based. 

b. On-time deliveries

On-time deliveries make for happy customers. Late deliveries, on the hand, lead to complaints, inconvenience and possibly extra costs for you. They’re also a warning sign that your delivery process is inefficient — so this is a really important metric to track. 

c. Average time per delivery

How long does it take for your drivers to make each delivery, from starting each leg of their route to finishing the next drop-off? This number is a combination of travel time + time at each stop. Cutting time per delivery, for example by more efficient route planning, is an obvious way to cut inefficiencies.

d. Average deliveries per hour

An alternative to average time per delivery is average deliveries per hour (also called route density), which is easier to calculate. This is a key determinant of overall delivery cost: If you're only making one or two deliveries per hour while your drivers are on the road, that's going to be expensive. Some useful route density benchmarks to know:

• Less than three deliveries per hour is poor performance. 
• Three to six deliveries per hour is average. 
• Seven or more deliveries per hour is excellent. 

Large couriers like Fedex or UPS can achieve 10~20 deliveries per hour, but this is only possible because they’re dealing with very large volumes. 

Obviously a lot depends on your delivery area: You can make a lot more deliveries per hour in a dense urban area than a rural area, where there might be miles between deliveries. But route optimization can improve your route density wherever you are. 

e. Average time at stop

How long does it take your drivers to park, unload, drop off the order, get proof of delivery and return to their vehicle ready to start the next leg? If you’re tracking this metric, you can identify ways to reduce the time, and thus get more stops per route. 

f. Average cost per delivery

This is your total number of deliveries divided by your total cost of making those deliveries. Include driver wages, fuel, vehicle maintenance, insurance, back office and other costs to make this as accurate as possible. Decreasing cost per delivery is your sign that your delivery system is getting more efficient. 

g. Driver performance

Are your delivery drivers choosing the most efficient routes, using their stop time effectively and keeping on time? Using delivery management software to track driver performance can help you identify opportunities for training and improvement. 

2. Invest in the right delivery vehicles and equipment

The right vehicles and equipment can make a huge difference in your delivery efficiency. Choose vehicles that are well-suited to your needs: For example, small cars or even cargo bikes can have surprisingly large load capacity and might be a better choice than trucks in a dense urban area. Choose small vehicles for small numbers of local deliveries or larger vans for bigger items or larger volumes. Consider factors such as fuel efficiency, vehicle capacity, and durability when selecting your delivery vehicles.

Investing in equipment and tools to help deliver drivers efficiently load and unload packages, improving your “average time at stop” metric. Equipment might include dollies, hand trucks, or other specialized equipment that can make the job easier and safer.

3. Load vehicles in order of delivery

If it’s going to be delivered first, load it last. This is another way to make your delivery drivers more efficient (and less frustrated!) and reduce your time per stop. 

The easiest way to load in order of delivery is have your route planned and printed out, or sent to a driver’s mobile phone using a driver app, well before loading starts.  

4. Plan efficient delivery routes

One of the best ways to ensure you’re offering an efficient delivery service is to use a delivery management system with an excellent route optimization algorithm.  The shorter your routes are, the lower your average time per delivery. Shorter distances also mean lower fuel consumption and less wear and tear on vehicles, so your cost per delivery will come down as well. 

If you’re ready to try specialized route optimization software, make sure you pick a system that meets the specific needs of your business. Choose an app that can handle the number and type of deliveries you make, enable you to offer delivery time windows to your customers, and takes the size of your vehicles into account.

💡Routific  is one of the easiest ways to improve your delivery performance. Try it free for 7 days.

5. Improve dispatch and delivery management

Last mile delivery is the most expensive part of the supply chain because there are so many variables, and so much can go wrong. Traffic congestion, a sick driver, a last-minute order or pickup — any of these can cause havoc with your delivery schedule. 

Use dispatch and delivery management software to remove bottlenecks in the process, and give your drivers the resources and information they need to complete their deliveries on time and efficiently. Look for software that:

• Dispatches delivery routes directly to a driver app or their mobile phone
• Allows you to easily add stops or change routes
• Tracks delivery progress in real time
• Makes it easy to communicate with customers

6. Create an excellent customer experience

A stressed customer is an unhappy customer! Uncertainty and lack of information are the biggest causes of stress, so the key to meeting customer expectations when it comes to the delivery experience is accurate, timely information. 

The most important information you need to provide to ensure a great customer delivery experience is:

• Accurate ETAs
• Convenient time windows
• Real-time notifications and updates
• Proof of delivery
• Accurate contact details

If you do it right, you should spend hardly any time answering WISMO (short for “where is my order?”) questions. 

7. Hire good drivers, train them and treat them well

The quality of your delivery drivers can make or break your business. An experienced driver knows traffic patterns, convenient parking spots and repeat customer preferences. That’s all knowledge that can help improve your delivery efficiency and your customer experience. 

But delivery driving can be a dangerous and lonely job and turnover is high, so focus on driver retention by:

• Planning routes in advance
• Using route optimization to cut driving distances and time
• Create driver territories to keep drivers in the areas where they have most knowledge and feel most comfortable
• Dispatching routes via an easy-to-use app
• Providing training in efficient packing, app use and advanced driving techniques
• Scheduling reasonable breaks
• Setting clear expectations and performance goals – for example, on-time delivery KPIs
• Rewarding excellent performance
• Setting up customer notifications so drivers don’t have to deal with customer calls on the road

8. Vehicle maintenance

It’s boring, but essential! Regularly check and service your vehicles to avoid breakdowns and delays, maximize fuel efficiency, cut gas costs and keep your delivery drivers happy and safe.

It’s also important to keep your vehicles clean and well-organized, especially if they are branded. They are your driving billboards, reflecting the quality of your brand and product.

More efficient delivery systems can boost your profitability

The delivery experience can make or break an online retail business. Investing in the knowledge and tools you need to make your delivery operations more efficient is well worth it. Good systems get more important as you scale, so don’t wait until things are breaking before devoting time and attention to delivery efficiency. 

💡Boost your delivery efficiency with easy-to-use software. Try Routific free for 7 days.