Final mile contains a treasure trove of information in the form of untapped, unanalyzed data. While traditional final mile only defined a shipment as “out for delivery,” modern final mile logistics management offers significantly more information and insight into what creates a successful customer experience. Additionally, tracking the right key performance indicators (KPIs) will make a world of difference in shipment planning, workflow management, and scheduling, says Abivin. The KPIs of the final mile and white-glove services specifically provide immense insight into what needs work and what customers want.
Percent of On-Time Orders
While the percent of on-time orders remains a key final mile metric leading up to the threshold where delivery takes on white-glove characteristics, a similar metric exists for white-glove services. Since white-glove delivery may require numerous technicians and specialized movers, the percent of on-time orders for all defined white-glove shipments helps shippers understand delivery after the product reaches the customer’s doorstep. Failure to meet the KPIs of final mile standards, such as 95% on-time delivery, indicates the need for change in current operations, such as hiring more white-glove servicers, expanding your carrier selection and working with customers.
A Guide to Optimize Final Mile
The Ratio of Available White-Glove Service to Self-Service Delivery
Recognizing how often customers opt for white-glove service in contrast to self-service also provides additional insight. Shippers that see low use of white-glove services may retract their contracts, or they may need to increase the marketability of white-glove service. For instance, notifying customers of available custom delivery at the time of checkout may increase use, opening the door to more revenue and engagement with customers.
Average Shipment Weight Requiring White-glove, Alluding to Small Product, Install-Like Shipments Versus Furniture
Not all white-glove shipments possess identical requirements. Some items, such as furniture, may be grouped together, but what about furniture that requires assembly or appliances that need both moving into the home and set up, especially as more smart products become available? The answer to that question means tracking the average shipment weight of all white-glove shipments, as well as the percent of white-glove service tiers compared to total white-glove logistics. As a result, shippers learn what products require more time, and therefore, which will require a higher surcharge. This KPI is comparable to the actual-versus-planned service time for final mile metrics. Other white-glove service tiers, such as the hiring of professional contractors to install new light fixtures, also deserve their own service tier KPIs, helping to prevent risk and ensure an installation that meets warranty standards.
Dunnage and Old Item Removal
White-glove service requires the handling of all customer needs, including dunnage removal. Dunnage removal refers to the debris left behind that was used to ship an item. For example, furniture and appliances may require many disposable cartons, wrapping, and other material to secure the shipment and prevent damage. The white-glove servicer must remove such debris and account for it as a cost of white-glove logistics. In addition, customers also expect the servicer to remove old items, such as a non-working refrigerator or environmentally harmful batteries.
Percent Freight Claims Filled Due to Damage of Product or Delivery Locations
Speaking of the environment and risk management, tracking the percent of white-glove deliveries that result in damage to either customer property or a freight claim is necessary. Spikes in damage warrant investigation and if necessary, the termination or coaching of final mile servicers.
Value-Added Through White-Glove Service
Since white-glove service is an opportunity to increase revenue, it is essential to track the value-added. This value reveals the customer’s intent and willingness to pay extra for more than just simple delivery. This is one of the core KPIs of the final mile that can be an excellent way to judge the value of offering white-glove service in new areas. Also, track the number of customers using white-glove service for the first time, which will require a way to obtain customer feedback after the interaction ends.
Track the KPIs of Final Mile to Improve Customer Experiences and Logistics Management Now
Tracking these KPIs of final mile white-glove service use expands a shipper’s knowledge and enables better load planning and supply chain management. In a sense, it all goes back to using data to make decisions and understand what tomorrow’s customers want and expect.