Last Mile Tracking: The Five Key Performance Indicators

by | May 16, 2022 | Blog, Industry Insights

last mile tracking

The rapid spread of countless e-commerce channels has caused a significant shift in the global logistics industry. Logistics service providers no longer rely on antiquated systems such as manual data inputs, paper-based documentation, or teleconference cargo tracking. Instead, they use digital technologies to design adaptable workflows, optimize productivity, set up competitiveness, and improve productivity- especially in the last mile.

What are Key Performance Indicators?

A key performance indicator is a measurable metric that a company uses to assess how well it is achieving its strategic and operational objectives.

Stakeholders have different KPIs, depending on individual performance criteria or priorities. The following are the KPIs you can record with last mile tracking.

Cost Per Mileage

The cost of successfully implementing orders for every mile per vehicle is a KPI that should be calculated daily. To accomplish this, last mile tracking averages the overall number of consignments sent via a specific path at a specific time and price. The said average demonstrates the exact cost incurred by a logistics company to meet its obligations.

Utilization of Capacity

Capacity utilization is computed by dividing a vehicle’s available capacity by its total load capacity. If available capacity exceeds carrying capacity, the institution’s routing processes are deficient. However, if the carrying capacity is higher than the supply capacity, the company’s loading and stocking processes should be revised.

Order Precision

Prior to shipping your orders, last mile tracking always ensures that the packed order satisfies the requirements of the customer order. Thus, completely removing the risk of exposing ourselves to a slew of unnecessary complaints and disputes. Order accuracy is determined by dividing the total amount of shipped orders by the number of complaints-free deliveries.

Rate of Fuel Consumption (FTR)

Calculating total fuel consumption in intermodal transportation can be difficult. This is due to the fact that there’s no precise way of determining how much fuel is wasted or saved on any given day. On the other hand, the FTR formula instantly deciphers interval-based usage costs, and average the fuel costs per route and vehicle.

Average Service time (AST)

The average service time (AST) is the total time spent fulfilling a single request. It consists primarily of the time it takes to pick up a product from a warehouse, complete all pre-shipping paperwork, and deliver the product to the customer’s door. It is calculated by dividing the amount of time spent in the store by the number of orders made.

Key Takeaway

Key performance indicators (KPIs) are a significant part of the data required to explain and determine how a business will advance toward meeting its marketing and business objectives. They help organizations identify if they are on the right track and, if not, where they ought to focus their efforts. Regardless of what it measures, a KPI’s goal is to promote organizational health.

Elite EXTRA offers faster logistics made possible by advanced route optimization and real-time tracking; it seeks to impress your customers with a simplified customer portal and a streamlined logistics operation, rate-charge generation and driver settlement. Visit our website for more information.


Mallorie Barabas

Mallorie Barabas


Mallorie is the Marketing Strategist at Elite EXTRA; if you ask her about her job, she will immediately tell you to follow @EliteEXTRA on LinkedIn (that is your cue;) When she isn't at the office, you can catch her teaching aerial yoga, swimming, or just generally enjoying the outdoors.

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