When Will My Package Arrive? The Cost of Missed Deliveries

Online customers will very quickly vote with their clicks and choose competitors if their experience at the last-mile delivery falters in any way.

When Will My Package Arrive?

I am at my house playing with my kids.

In theory, I have taken a day off so that I can spend ‘quality time’ with my children.

In reality, I am eagerly waiting for my iPhone scheduled to arrive today.

It’s at 4 pm. I need to take my children to their soccer practice session. But no worries, I will be back soon, welcoming the brand new iPhone to my life.

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 neighbor, 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

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 Indian Motorcycle Riders Group (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. 

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

Another problem with missed deliveries is 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.

Environmental Concerns - The other factor of concern is the greenhouse 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

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 takes 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 First Attempt Delivery Rate

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, see video above) to increase their First Attempt Delivery Rate (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 First Attempt Delivery Rate, visit:

LOCUS - Add Intelligence to your Logistics

PS: 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.

Related Article: Helping Global Companies Solve Their Most Pressing Supply Chain Challenges

Helping Global Companies Solve Their Most Pressing Supply Chain Challenges

Related White Papers

Download the White Paper

Why Businesses Need Route Optimization
This white paper provides an in-depth look at how route optimization software can provide the most direct and most efficient route to all your stops and destinations, and how it allows you to save money, time, and energy every time you travel from one location to another. Download Now!

Download the White Paper

Fast-Moving Consumer Goods Sales Beat Insight Report 
In this report, we describe how Locus provides automated sales beat plans to optimize the mobile workforce for increased profitability, resource efficiency, and time savings. Download Now!

Download the White Paper

A Guide To Omnichannel Fulfillment 
According to a recent survey, only 22% of North American retailers consider “omnichannel efforts” a top priority, compare that to 2015 when 45% of retailers claimed the same. Download Now!

More Related Content from Locus

Article Topics

Locus News & Resources

How Can White Glove Service Increase Customer Loyalty?
Startup News: Locus raises $50 million in Series C funding
Building Your Business Around a Hyperlocal On-Demand Delivery Model
AI-Backed Route Planning Solutions for Ecommerce Players
U.S. and Canada Border will Temporarily Close amid Coronavirus Outbreak
Multi-Echelon Supply Chain Inventory Optimization
Slot Management: Customer-Preferred Delivery Time Windows
More Locus

Latest in Transportation

US Container Traffic Boosted by Back-to-School Rush
No Surcharge for Holiday Packages, USPS says
Port Everglades: Expansion and Sustainability Efforts for the Future
Moody’s: Carbon Offsets Open Supply Chains Up to Financial, Reputational Risks
Shippers Focus on Yield Management as Rates Continue to Rise
ASCM Releases Top 10 Supply Chain Trends for 2024
Amazon Bets on Itself with New End-to-End Supply Chain Service
More Transportation

Locus’ order-to-delivery dispatch management software helps enterprises transform their Last-Mile logistics from cost centers to revenue generators through advanced optimization algorithms and intuitive workflow automation. It has helped many global customers across industries – Unilever, Nestle, Bukalapak, BlueDart, etc. – execute 850 million deliveries across 30+ countries. Its technology has also helped save $275 million in transit costs and offset 10 million kilograms in CO2 emissions while maintaining a 99.5% SLA adherence ratio.

View Locus company profile


Featured Downloads

Rapidly Improve the Performance of Your Warehouse Logistics
Rapidly Improve the Performance of Your Warehouse Logistics
The Rapid Performance Evaluation identifies opportunities and potential improvements in every aspect of warehouse logistics operations; performance, productivity, service, quality, and systems.
Resource Management System (RMS): How to Effectively Leverage Your Assets
Resource Management System (RMS): How to Effectively Leverage Your Assets
This guide provides an in-depth analysis of the potential of various resources available in a warehouse and how they can be utilized...

Sustainable Supply Chain Insights From PITT OHIO
Sustainable Supply Chain Insights From PITT OHIO
A whitepaper on supply chain insights gleaned at the LEED-certified gold Cleveland transportation and sustainability summit.
20 Warehouse & Distribution Center Best Practices for Your Supply Chain
20 Warehouse & Distribution Center Best Practices for Your Supply Chain
In this guide, we picked the brains of our supply chain engineers to find ways to improve warehouse and distribution center efficiency...
SOLOCHAIN WMS plus a Guide to Warehouse Management Systems
SOLOCHAIN WMS plus a Guide to Warehouse Management Systems
In these 2 'papers' Solochain WMS, we detail Manufacturing Execution System capabilities and Generix's portfolio of SCM solutions to manage all distribution logistics,...