One of the obstacles in running a business is that deliveries may not be completed on time. If a product is damaged or malfunctions during transit, you will face a failed delivery. The question is: How much do companies lose due to failed deliveries?
£771 Million GBP
According to Andrew Starkey, Head of e-Logistics at IMRG, the total cost of failed deliveries amounted to approximately £771 million in 2014. This is a staggering figure and it only gets bigger as more companies encounter this issue. The problem of last-mile delivery failures is growing exponentially, driven by increasing delivery volumes. But it’s not just financial losses; failed deliveries lead to dissatisfied customers who will not return to your products and services.
Ultimately, failed deliveries can cause bigger problems. It leads to several challenges that require flexible solutions. Failed delivery can be a minor issue in one case but a major issue in another. It all depends on how you address and solve the problem.
Causes of Failed Deliveries
Each industry and business sector has its own specific issues. Sometimes, the cause of a failed delivery can be that the customer is not home at the time of delivery to receive the product. This is why you need to provide customers with a clear notice of the delivery process. When that happens, everything will improve and the entire delivery won’t fall apart at this last mile.
Additionally, there are unforeseen circumstances such as blocked roads or traffic issues. Such issues are not new, and with the reality that everything is getting worse. Certainly, all of it can bring about some unpredictable consequences. It is undeniable that finding an appropriate solution is the top priority.
Lack of interaction can also make your customers frustrated. If you do not clarify information with customers, they will not see the results they expect. This could be another cause of failed deliveries because customers lack understanding about the delivery and how to cooperate to make it successful.
Another possibility is that the distribution system is not properly organized. Sometimes orders are not executed correctly, especially in a drop-shipping model, where you have a third party delivering for you. If you integrate an inappropriate distribution system, the risks are limitless. When an error occurs, the inevitable consequence you face is a failed delivery.
How to Avoid Failed Deliveries?
How to Avoid Failed Deliveries?
You might find it hard to believe, but there are many ways you can do to avoid failed deliveries. However, you need determination, focus, and consistency, or a plan B if a failed delivery happens. Solving the problem will be easier when you have multiple solutions or a support tool.
Real-time visibility is needed
A good solution should help you control the delivery progress in real time. This way, the manager can see the position of the delivery person and know whether the order has been delivered or not. A good Transport Management System can easily bring the necessary solutions and features related to that issue. Real-time visibility can also give customers the ability to track the distribution process. It lets them know when they will receive the product, thereby reducing the rate of failed deliveries.
With real-time visibility, Abivin vRoute helps supervisors monitor delivery staff up to the customer's delivery location. The notification system will promptly inform them if the delivery fails or if the delivery person operates out of plan. As a result, the delivery supervisor will be completely proactive in controlling the entire delivery process.
Communication is Key
As mentioned above, one of the most important things is to communicate with customers. Even if there is a delay, you can somehow reschedule with the customer. Sincerity and a clear dialogue with the customer can solve most problems promptly. Communicate with customers and let them know about the distribution process! Of course, this will be more difficult if the delivery volume is large, but anyway, this is still the right way to do it.
Abivin vRoute Mobile App helps control delivery status
Accurate Planning with Time Windows
One of the reasons for failed deliveries is that the delivery schedule does not meet the specific open/close times of delivery points (time windows), or customers do not know when the delivery will occur. This may not be important for some couriers, but when customers don’t know when to expect a product, they will do other things.
By scheduling deliveries with precise time windows, customers will know when to expect a product, and couriers will know exactly which delivery point to deliver at a specific time window. Moreover, you can let customers notify their available reception times. This certainly makes logistics operations more complex because you are adding time constraints, but it can bring excellent service results if used correctly. A highly worth considering option is using route optimization software, as you can input store opening/closing times, lunch breaks, and the software will automatically provide a delivery plan within seconds.
As a Logistics Optimization Solution with Route Optimization Algorithm, Abivin vRoute calculates the optimal route, meeting 20+ constraints including specific delivery times, and studies traffic history data, delivery time data. You can ensure customers will not only receive the goods but also receive them at the exact time and place expected by the customers.
Failed deliveries can be quite troublesome, but there are great solutions that you can implement from today. Although not easy, in some aspects failed deliveries can make you realize the importance of improving the delivery process. With frequent communication with customers, improved progress monitoring, and better delivery time planning, the results will make you and your customers very impressed.
References
1.https://ciltuk.org.uk/News/News-Search-Results/ctl/NewsItem/mid/595/Id/4007?returnurl=%2FDefault.aspx%3FTabId%3D186%26Page%3D232%26language%3Den-GB
2.https://go2stream.com/blog/real-cost-failed-deliveries/
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Failed Deliveries: Causes and Solutions