When it comes to omnichannel, there’s the idea that customers can order from wherever they want, whenever they want, and also have it delivered wherever and whenever they want. In an omnichannel journey, the entire supply chain is called upon to improve the customer experience. It is therefore essential to have visibility over the various links in order to optimize deliveries. A complex omnichannel environment creates situations conducive to delivery problems: management of delays and problems linked to delivery: packages lost, damaged, delivered to a third party… Added to this is the need to manage multiple service providers, various stocks and returns. What’s more, customers want to be kept informed of the status of their order in near real time. That’s why, as an e-tailer,delivery KPIs are crucial for measuring the efficiency of your delivery processes. Tracking these KPIs ensures that products or services reach customers on time and in good condition.
Here are the important delivery KPIs to track
Preparation time :
Order preparation time is the time required between placing an order and dispatching the parcel. This indicator gives a good idea of warehouse production. It is interesting to analyze this indicator from the point of view of order picking delays. In this case, we need to measure the difference between the forecast shipping date and the actual shipping date. The forecasted dispatch date takes into account cut-off times, and can be adapted to specific constraints: product type, peak activity, delivery service, etc. If there is a delay, the e-merchant can inform the customer and/or make up for the delay by using a faster delivery service.
Delivery time :
The time it takes to deliver a product or service from the point of order to customer reception. Shorter delivery times are generally preferred.
Service quality :
This is one of the key indicators when it comes to transport. Quality of service (QS) represents the ability to meet delivery performance targets.
The most common method of calculating this KPI is: Number of shipments delivered on time / Number of shipments delivered. A good SQ rate is at least 95%.
As far as carriers are concerned, the date that starts the countdown to delivery is often the pick-up date. This action usually takes place in the carrier’s collection agency. This is known as carrier vision QS.
The delivery time countdown stops at a “clock stop”, the event that marks the end of the carrier’s responsibility for delivery. This clock stop can take several forms:
– The actual handover (possession) of the parcel to the recipient.
– A presentation: the delivery driver arrived at the recipient’s home, but the recipient was absent.
– The arrival of the parcel at a collection point when this mode of transport has been chosen.
– An event beyond the carrier’s control: strike, weather, traffic ban, unknown address, etc.
In the case of e-commerce QS, the date on which the delivery time is counted most often corresponds to dispatch, the date on which the packages are physically handed over to the carrier.
WISMO rate:
Visit contact rate, i.e. the number of incoming contacts (mail, chat, phone) per order is a very important indicator. The aim is to obtain the lowest rate, because these contacts “WISMO” (Where IS My Order) are expensive (between €1 and €3 per contact).
To reduce “WISMO”, we need to know as precisely as possible the causes of contact. For each cause, it will then be possible to set up appropriate pro-active communication by e-mail, SMS or via a follow-up page. Once these actions have been deployed, it’s time to measure their effect on the contact rate and adapt communication to reduce it.
Time limit for resolving a return and/or exchange :
This is a crucial KPI that measures the average time taken for a customer’s return or exchange request to be processed and resolved. This KPI is usually measured in hours or days, and includes the entire process from customer initiation of the return or exchange request to final resolution, which may include receipt of the returned item, processing of the refund or replacement, and communication of the resolution to the consumer.
The shorter the lead time, the more efficient a company is operationally, and the greater the contribution this makes to customer satisfaction. Other KPIs concerning returns are also relevant.
There are a multitude of other performance indicators for tracking omnichannel e-commerce deliveries. It is therefore essential to have visibility over all these KPIs, and wise to equip yourself with a platform that enables you to optimize the consumer experience.