Locus Logo Locus Logo
  • Platform
    • Fulfillment Automation
      • Order Management
      • Delivery Linked Checkout
    • Dispatch Planning
      • Hub Operations
      • Capacity Management
      • Route Planning
    • Hybrid Fleet Management
      • Transporter Management
      • ShipFlex
    • Track and Trace
      • Driver Companion App
      • Control Tower
      • Tracking Page
    • Analytics and Insights
      • Business Insights
      • Location Analytics
  • Industries
    • Retail
    • 3PL & CEP
    • E-commerce
    • Other Industries
      • E-grocery
      • Industrial Services
      • Manufacturing
      • Home Services
  • Resources
    • Whitepaper
    • Case Studies
    • Infographics
    • E-books
    • Blogs
    • Events & Webinars
    • Videos
    • Glossary
  • Company
    • About Us
    • Global Presence
      • Locus in Americas
      • Locus in Asia Pacific
      • Locus in the Middle East
    • Locus at Gartner
    • Careers
    • Partners
    • News & Press
    • Locus Labs
    • Trust & Security
    • Contact Us
  • Customers
  • Guides
    • Unit Economics in Last Mile
    • Last Mile Delivery Logistics
    • Last Mile Delivery Trends
    • Time Under the Roof
    • Peak Shipping Season
    • Electronic Products
    • Fleet Management
    • Healthcare Logistics
    • Transport Management System
    • E-commerce Logistics
    • Direct Store Delivery
    • Logistics Route Planner Guide
Schedule a demo
  1. Home
  2. Blog
  3. When will my package arrive: The cost of missed deliveries

CEP and 3PL, Delivery Experience, E-Commerce, Fleet Optimization, Grocery, Healthcare / Pharmaceutical, Retail & CPG

When will my package arrive: The cost of missed deliveries

Avatar photo

Team Locus

Jul 31, 2019

5 mins read

Locus_First_Attempt_Delivery_Rate_hero

It’s 4.35 by the time I come back. I see a note on my doorstep. No! Not that. Anything but that. But alas! It is the infamous ‘Sorry; we missed you’ note. The best-case scenario for me from here is that my parcel is with my neighbour, and hopefully, they are in their house. Otherwise, I will have to book another delivery slot or might have to even drive to the depot. The worst case is if my iPhone has gone missing, and now I have to talk to the dreaded automated customer care services. 

The cost of missed deliveries: 

Locus_SupplyChainOptimization_Cost_of _Missed_Deliveries

Brand Perception

But that’s just me and my iPhone’s story. Thousands of people face similar situations every day. The whole point of quick and hassle-free shopping of e-commerce is lost when you have to waste time and energy in searching for your parcels.

Most customers can’t differentiate between a brand or retailer and the quality of the delivery experience. And online customers will very quickly vote with their clicks and choose competitors if the experience at the last mile delivery, which is the single touchpoint for e-commerce, falters.  

Lost Revenues

The missed deliveries don’t just cost customers like me, but they cost the e-commerce and 3PL players as well. According to IMRG, it costs retailers, couriers, and consumers a collective $2 billion a year. 

According to a study by Voxware, 69% of customers won’t shop with a retailer if an item they purchased is not delivered within two days of the date promised. 16% of customers will abandon shopping with a retailer altogether if they receive an incorrect delivery just one time, and 14% will do so if they receive a late delivery just one time. 

Last Mile Delivery Costs: Bringing Order to Chaos

The last mile of the supply chain itself costs 28% of the total transportation costs involved, and with an average re-delivery cost of $15/delivery, missed deliveries are emerging as the new headache for E-commerce and 3PL players. 

Another problem with missed deliveries are false reports of stolen or lost packages. According to the 2015 LexisNexis True Cost of Fraud Study, United States e-tailers on an average lose around 0.51% of their annual revenue to fraud. On average, 36% of these activities are attributed to stolen and lost merchandise. 

First Attempt Delivery Rate: The Metric for CEP & Retail Success

Environmental concerns

The other factor of concern is the green-house emissions occurring during redeliveries. 

According to the EPA, 26% of all US greenhouse emissions are attributed to the transportation industry, which includes logistics and delivery. As the article suggests,  at one billion missed deliveries annually, the total amount of carbon emitted due to redelivery is 3,742 metric tons. To put this into perspective, this is the amount of carbon 9,050 trees would have sequestered over a 58-year life span.

So how can missed deliveries be minimized 

Locus_SupplyChainOptimization_missed_deliveries

To understand how companies can reduce missed attempts of deliveries, let’s have a look at the most common causes of them:

  1. The customer is not present: Much like me and my iPhone’s case, the most common reason for missed deliveries is the absence of the customer. Locus enables time-defined deliveries on customer preferred windows. It also provides with an ETA link, which allows the customer to track his or her orders in real-time.
  2. Delay in deliveries: Unforeseen traffic conditions, roadblocks, or other real-world constraints can often lead to unavoidable delays from the delivery companies. However, autonomous route optimization software that take real-life constraints into account before generating optimized delivery routes can solve the issue and predict the correct delivery window beforehand.
  3. Failure while loading: A lot of times the delivery executives can simply miss out on carrying all the deliveries (or part of delivery) while starting the day. In these cases, functions like partial deliveries can save the day and stop the customer experience from becoming worse.
  4. Wrong address: Sometimes, the address given by the customer is fuzzy or incomplete. Geocoding solutions that can accurately depict the exact coordinates even when working with the most ambiguous addresses can be the real game-changer here.

How technology can help in improving FADR

AI-backed logistics solutions that provide dynamic route plans after considering operational constraints & environmental factors like real-time traffic can help in delivering on customer-preferred time windows to enhance the overall last mile experience. 

At Locus, we are helping enterprises such as Big Basket (an Alibaba backed $bn e-grocery firm), Myntra (largest fashion e-tailer in India), and BlueDart (a DHL subsidiary) to increase their FADR  leading to a dramatic reduction in logistics costs and increased brand loyalty. Our exclusive features ensure deliveries on customer-preferred delivery windows, accurate ETAs with live track-link for customers, resulting in time-definite deliveries (vs. day-definite deliveries). 

To know more about FADR, kindly visit: 

Schedule Demo with Locus

By the way, I had to cancel and reorder my iPhone, and this time, it was delivered on-time. Thankfully, the e-retailer was using Locus.

How to address real-time courier dispatch challenges?

This post was authored by: Sreshtha Das

Related Tags:

Previous Post Next Post
How to tackle last mile delivery challenges in North America

E-Commerce

How to tackle last-mile delivery problems in North America using technology

Avatar photo

Team Locus

Jul 22, 2019

Logistics solutions to catapult business profits Running a marathon may be about the long haul, but that last stretch is what makes all the difference. Imagine your customer stuck in the office, and they check their phone in the 53 seconds timed break that they get. And see one missed call from an unknown number. […]

Read more
red carpet of logistics

Last Mile Delivery Optimization

How Hollywood can teach us supply chain lessons: The red carpet of logistics

Avatar photo

Team Locus

Aug 23, 2019

The power of film is well masked behind the facade of Hollywood scandals and celebrity faff. If you take a closer look, some movies can leave a lasting impression on principles to adopt in real life. With increasingly complex consumer demand patterns and globalization of operations, your supply chain could use a helping hand. The […]

Read more

When will my package arrive: The cost of missed deliveries

  • Share iconShare
    • facebook iconFacebook
    • Twitter iconTwitter
    • Linkedin iconLinkedIn
    • Email iconEmail
  • Print iconPrint
  • Download iconDownload
  • Schedule a Demo

MOST POPULAR

Featured

The Rise of Hub and Spoke Distribution Model in Modern Supply Chains

Avatar photo

Shweta Sarma

Apr 24, 2020

Route Optimization

Traveling Salesman Problem (TSP) and How Tech Can Solve It

Avatar photo

Lakshmi D

Mar 2, 2020

Route Optimization

Explained: Vehicle Routing Problem (VRP) and the most effective solution to address it

Avatar photo

Lakshmi D

Jun 16, 2020

EDITOR’S PICKS

Supply Chain Optimization

The Role of Logistics Management in Optimizing Supply Chain Operations

Avatar photo

Team Locus

Apr 4, 2023

Route Optimization

Last Mile Automation: Intelligent Routing is Key to Success

Avatar photo

Prateek Shetty

Mar 28, 2023

E-Commerce

How Dispatch Management Software Helps Businesses Manage Peak Shipping Seasons like Ramadan

Avatar photo

Lakshmi D

Apr 28, 2021

SUBSCRIBE TO OUR NEWSLETTER

Stay up to date with the latest marketing, sales, and service tips and news

SUBSCRIBE TO OUR NEWSLETTER

Stay up to date with the latest marketing, sales, and service tips and news

Platform
  • Platform Overview
  • Delivery Experience
  • Real-world Routing
  • ShipFlex
Footer compliance
Industries
  • Retail
  • 3PL & CEP
  • E-commerce
  • E-grocery
  • Industrial Services
  • Manufacturing
  • Home Services
Resources
  • Whitepaper
  • Case Studies
  • Infographics
  • E-books
  • Blogs
  • Events & Webinars
  • Videos
  • Glossary
Company
  • About Us
  • Customers
  • Careers
  • Partners
  • News & Press
  • Trust & Security
  • Contact Us
Locus Logo

© 2023 Mara Labs Inc. All rights reserved. Privacy and Terms

 

Loading Comments...