Benchmarking Key Performance Indicators (KPIs) for Last Mile Distributors (LMDs)

Running a company without business data is like driving a car without a dashboard - and not knowing your monthly expenses is like not knowing how much gas you use per mile. However, it is not always easy for an entrepreneur to determine which data is important to track, and how to use it to evaluate their business’ performance.

At Hystra, in collaboration with the Global Distributors Collective (GDC) and with support from FCDO, we have leveraged data — collected from 70+ LMDs (including 63 we have worked with since 2013), 10 leading LMDs recently interviewed for this work​, 109 LMD respondents to GDC's 2021 member survey and from PayGo Labs for credit-related indicators​ — to create a benchmark of 23 critical KPIs to assess business performance. These KPIs cover three broad areas: (1) Value proposition (2) Sales and marketing and (3) Backend infrastructure and overheads aiming to:

• Help LMDs determine the key performance indicators (KPIs) to track, assess their business performance and compare themselves with a benchmark of their peers

• Help funders get a better sense of key operational parameters that can make or break the success of an LMD, as well as identify areas of focus for technical assistance for current or future investees

• Improve transparency of the sector

Publication
Practical Excel tool to track performance

*The Global Distributors Collective (GDC) is a network of over 200 last mile distribution organisations operating in more than 60 countries. GDC members sell beneficial products like solar lights, clean cookstoves and water filters. The GDC supports distributors to reach underserved customers, and represent and develop the wider last mile distribution sector.