Top 10 Last Mile Delivery Metrics to Monitor in 2023
In the fast-moving world of last mile delivery operations, last mile delivery metrics to monitor in 2023 has emerged as a defining factor for operational success. Fulfillment managers across industries are rethinking how they approach this challenge, driven by rising costs, evolving customer expectations, and the growing availability of purpose-built technology.
Industry leaders are recognizing that last mile delivery operations is no longer a back-office concern. It directly impacts customer satisfaction, brand reputation, and profitability. Businesses looking to address this challenge are increasingly turning to last mile delivery software to streamline operations and reduce costs.
In this article, we break down the key aspects of last mile delivery metrics to monitor in 2023, explore what the latest industry data reveals, and provide actionable strategies that e-commerce businesses can implement immediately. Whether you are scaling an existing operation or building from the ground up, the insights here are designed to guide practical decision-making in 2026 and beyond.
Setting the Foundation
The conversation around last mile delivery metrics to monitor in 2023 has evolved substantially as businesses confront the realities of operating in 2026. Rising fuel costs, labor shortages, and increasingly demanding customers mean that the approaches that were considered adequate just a few years ago are no longer sufficient. E-commerce businesses are under pressure to find scalable, data-driven solutions that deliver measurable results.
The global last mile delivery market is projected to reach $288 billion by 2028 (Allied Market Research, 2025).
This shift is not limited to large enterprises. Small and mid-sized delivery businesses are finding that investing in last mile delivery operations technology pays for itself quickly through reduced costs and improved average delivery time. The barrier to entry has dropped, but the competitive advantage of getting it right has only increased.
For retailers and their teams, this translates into a clear imperative: the businesses that invest in understanding and optimizing last mile delivery metrics to monitor in 2023 today will be better equipped to handle the operational pressures that lie ahead. The cost of maintaining the status quo, in terms of both direct expenses and missed opportunities, increases with each passing quarter.
Proven Strategies That Work
In a market where customer expectations continue to rise, operational efficiency is not just a cost consideration. It is a competitive differentiator. Businesses that can consistently deliver on their promises -- on time, in full, with clear communication -- earn the repeat business and referrals that drive sustainable growth.
- Reduced costs -- By optimizing last mile delivery operations processes, businesses typically see meaningful reductions in fuel, labor, and redelivery costs within the first quarter.
- Improved reliability -- Consistent processes and automated workflows reduce the variability that leads to rising customer expectations and other common operational issues.
- Faster response times -- When disruptions occur, real-time visibility and real-time ETA updates enable faster adjustments that minimize impact on service levels.
- Better team coordination -- Centralized platforms keep e-commerce businesses, drivers, and customer-facing teams aligned on priorities and status throughout the day.
- Competitive differentiation -- In a market where service quality often determines customer loyalty, operational capability becomes a genuine competitive advantage.
Digging deeper into the mechanics, the most successful implementations share several common characteristics. They start with clean, reliable data. They involve frontline teams in the design process. They measure what matters and iterate based on real performance, not assumptions. And they use technology as an enabler rather than a replacement for good operational thinking.
A Deloitte 2025 study found that real-time tracking reduces "where is my order" (WISMO) calls by up to 60%.
For a deeper look at related strategies, see our guide on last mile delivery your ultimate guide, which covers complementary approaches to the concepts discussed here.
Advanced Techniques for Growth
One of the most underestimated challenges is the gap between strategy and execution. Many businesses have a clear vision for how they want their last mile delivery operations to work, but struggle with the practical steps needed to get there. This is where technology plays a crucial role -- not by replacing human judgment, but by removing the friction that prevents good decisions from being executed consistently.
According to Pitney Bowes, global parcel volumes exceeded 200 billion in 2025, up from 159 billion in 2022.
Tools like retail delivery solutions complement these strategies by providing the operational visibility and control needed to execute consistently at scale.
Modern last mile delivery operations platforms address these challenges by providing a unified view of operations, automating routine decisions, and surfacing the insights that matter most. Rather than adding complexity, well-implemented technology simplifies day-to-day operations while improving consistency and accountability.
It is worth noting that the challenges associated with last mile delivery metrics to monitor in 2023 are not static. As customer expectations continue to rise and competitive pressures intensify, the bar for what constitutes adequate performance keeps moving upward. Organizations that treat operational improvement as an ongoing discipline, rather than a one-time project, are the ones that sustain their gains over time.
Related reading: Zigzag 48 of All Returns Over Christmas Were Paid Returns explores how these principles apply across different areas of logistics operations.
Putting It All Together
Putting these concepts into practice requires a structured approach. The following steps have proven effective for organizations at various stages of last mile delivery operations maturity, from those just starting their digital transformation to those refining already-capable operations.
- Build your data foundation -- Ensure your customer, address, and order data is clean and standardized. Poor data quality is the number one reason last mile delivery operations technology implementations underperform.
- Engage your frontline team -- Involve drivers, dispatchers, and e-commerce businesses in the planning process. Their practical knowledge is invaluable for designing workflows that work in the real world.
- Configure and customize -- Set up the platform to match your specific operational rules, service areas, and business constraints. The best tools are flexible enough to adapt to your processes, not the other way around.
- Train thoroughly -- Invest in comprehensive training for all users. Understanding not just the how, but the why behind each feature drives adoption and ensures consistent use.
- Monitor and optimize -- Use dashboards and reports to track cost per delivery and other key indicators from day one. Early visibility into performance allows you to make adjustments before small issues become big problems.
Keep in mind that the goal is not perfection on day one. It is building a system that gets better over time. Every delivery provides data. Every day of operation generates insights. The organizations that capture and act on this information systematically are the ones that pull ahead.
You may also find value in our article on what does white glove delivery mean, which provides additional context for implementing these strategies effectively.
Measuring What Matters
Scaling last mile delivery operations operations is one of the most common challenges businesses face as they grow. What works at low volume often breaks down under increased load, not because the approach was wrong, but because it was never designed for scale. Investing in systems and processes that are built to handle growth -- with the flexibility to adapt as requirements change -- pays dividends well beyond the initial investment.
One common pitfall is measuring too many things without acting on any of them. Focus on a small set of metrics that directly tie to your business objectives and that your team can influence through their daily actions. Dashboards and automated alerts make it practical to maintain this focus without adding administrative burden. Over time, as your last mile delivery operations operations mature, you can expand the scope of what you measure.
For additional perspectives, our article on the benefits of using technology for local deliveries covers related operational strategies that many businesses find valuable.
See also: 10 Reasons Use Delivery Planning Software for a broader view of how these themes connect across logistics functions.
Looking Forward
As we look at the trajectory of last mile delivery operations in 2026 and beyond, the direction is clear. Technology-enabled operations are not a luxury. They are a baseline requirement for businesses that want to compete effectively. The good news is that getting started has never been more accessible, and the returns have never been more compelling.
The next step is yours. Evaluate your current last mile delivery operations processes against the benchmarks and strategies outlined here. Identify the gaps with the highest cost, then take action. The technology exists, the data supports the investment, and your customers are waiting for the experience they deserve.
The operational landscape will continue to change, but the organizations that build strong foundations in last mile delivery operations today are the ones best positioned to adapt. By combining clear processes, the right technology, and a commitment to data-driven improvement, you can turn last mile delivery metrics to monitor in 2023 from a challenge into a genuine competitive advantage.
Ready to see how these strategies can work for your business? Start your free trial or book a demo to see Locate2u in action.