Mercado Libre: Brazil’s Last Mile Logistics & Shopee Competition
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So I would like to go into more detail on how the operation works in São Paulo. Maybe we can look at a package or a van—whichever is the better unit—and understand what a “day in the life” looks like for that package or van, so that we can discuss KPIs and efficiency.
Sure. Let’s use the average for a small truck or van. The average number of packages routed per vehicle was around one hundred and sixty. One KPI was SPR—Shipments Per Route—and the average number of packages per route was around one hundred and twenty.
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Good. I want to get into routing and the delivery day itself, but still on outbound: what were the main KPIs and how did they evolve from the beginning until you left?
For outbound, the main KPI was average loading time. Then, tied to routing, there were SPR and CPS—Cost Per Shipment. CPS appeared in the routing interface: the more packages placed in a vehicle, the lower the cost per shipment. Those were the key KPIs before outbound. Then we tracked DS—Deliver Success. And there were others like ORH—On Road Hours—which measured the total time of a route.
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And when a van delivers two hundred packages in twelve hours, what runs out first—the number of packages or the hours? What is the bottleneck?
There was a movement to remove vans from central São Paulo and the densest areas. We still needed vans for bulky items, but routing was adjusted so they could run outside peak hours. A van delivered around nineteen to twenty packages per hour, with a driver and a helper. That is another point—sometimes vans had helpers, sometimes not. With helpers, vans would easily carry three hundred packages in a twelve-hour shift.
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