The Huge Cost of Failed Delivery and How to Avoid It

May 24, 2024 by
The Huge Cost of Failed Delivery and How to Avoid It
ABI-VNM - Abivin Vietnam, Phạm Nam Long
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One of the toughest things about running a business is that sometimes delivery may not be fulfilled at the right moment. Or the product breaks/malfunctions during transport, in which case you will face with a failed delivery. That raises the question: How much do companies lose due to failed delivery?

failed delivery parcel

£771 Million

According to Andrew Starkey, the head of e-logistics for IMRG, the total cost of failed deliveries is around £771 Million in 2014. That is a huge number, and it only gets bigger as more and more companies have to deal with this problem. This last mile problem is increasing exponentially, and it’s all due to the increased volume of delivery. But it’s more than just the financial losses here, as failed delivery will lead to unhappy customers that won’t ever come back.

In the end failed delivery can be even a bigger problem. It leads to some nifty challenges. While failed delivery can be a small issue in some cases, they can also be a major one depending on the situation. It all comes down to how you tackle the issue and how you choose to manage it.

Why does failed delivery happen?

Each industry comes with a different set of problems. Sometimes it can be the customer that is not home to accept the delivery. This is why you need to offer customers a much better notice about the delivery process. As long as you do that, things will be better, and the entire delivery will not be a bust.

In addition, there are things like unforeseen circumstances, road closures and traffic problems. It’s not uncommon to deal with such a problem, and the fact that things are just getting worse can certainly bring in some huge issues. Certainly, finding the right means to deal with a situation like that is a priority.

FedEx truck deliver in traffic jam

A lack of communication can also result in letting down your customers. If you don’t communicate with customers clearly, they will not be able to see the results they expect. That can be a reason for a failed delivery too, as the customer will not know about the failed delivery itself.

There is another possibility that you have an improper delivery system. Sometimes orders are placed, but they are not fulfilled properly. It can happen especially in the case of drop shipping, where someone else does the shipping for you. The possibilities are limitless as long as you integrate the improper delivery system. If there are any errors, you must indeed deal with failed delivery. Though it’s not going to be easy, the results can be memorable as long as you can come up with a solution.

How can you avoid failed delivery?

Believe it or not, there are tons of things you can do to avoid failed delivery. However, you need to bring in the right commitment for something like this. You need to have a focus on consistency, or a plan B if a failed delivery happens. It’s a lot easier to deal with a problem when you have multiple solutions, a tool to assist you.

map showing delivery men location

Real-time visibility

A good solution in many ways should be having Real-time visibility. This way the delivery manager can see where the delivery man is and if the package was delivered or not. A good Transportation Management System can easily bring in solutions and features that you will need in that regard. Real-time visibility can also allow you to keep customers engaged in the delivery process. If a customer knows when they will receive the product, it’s a lot better for them, and there won’t be as many failed delivery.

With Real-time visibility enabled, Abivin vRoute helps delivery supervisors follow the deliverymen’s routes to the customer’s places. Prompt notification will tell them if a failed delivery happens, or if the delivery man is not working in the right plan.

Enable Real-time Visibility with Abivin vRoute now

Communication is key

As we mentioned above, it’s always important to talk with the customer. Even if there’s a delay, you can somehow reschedule. The idea is to be honest and to have a conversation with them, which helps solve most issues in due time. Communicate with the customers and let them know about the delivery process! Sure, it can be difficult if you have lots of deliveries, but in the end, it is the right thing to do.

abivin vroute logistics optimization software

Abivin vRoute Mobile App helps control delivery status

Accurate time windows planning

One of the reasons why deliveries fail is because customers don’t know a specific delivery window. That may not matter a lot for some delivery men, but when a customer doesn’t know when to wait for a product, they will just go ahead and do something else.

By enabling a time window delivery, customers will know when to expect a product. Better yet, you can let customers choose time windows for themselves. It certainly makes the logistics operation more difficult, since you are placing a deadline but it can do wonders if you use it correctly. A good option would be to use route optimization software, as you can place specific time windows and let the software comes up with the delivery plan in seconds.

As a Logistics Optimization Solution with Route Optimization Algorithm, Abivin vRoute takes into account special constraints like specific time windows, and the study of historical traffic, service time data. You can ensure customers will not only receive the delivery, but also receive it at the right time, in right place.

Deliver at the right time with Abivin vRoute today

Yes, failed delivery can be a troublesome problem, but there are great solutions that you can implement from today. It all comes down to using a simpler approach and to handling everything in a meaningful way. While it’s not going to be a walk in the park, resolving failed delivery can indeed help you improve your delivery process. With the right communication, improved visibility, and better time windows, results can be really impressive.

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