How Does Last Mile Logistics Software Help Retailers Ensure Cost-Efficient & Successful Deliveries

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How Does Last Mile Logistics Software Help Retailers Ensure Cost-Efficient & Successful Deliveries

Ensuring successful delivery of a parcel on the first attempt means a lot to a retailer. First attempt delivery improves customer experience, avoids extra costs involved with each re-attempt, and is a key to keeping profit margins up. Making each delivery successful on the first attempt is challenging with manual management of last mile delivery operations. However, retailers can increase the first attempt delivery rate by implementing smart last mile logistics software. Before we delve deeper into how the last mile software helps to improve FADR, let’s read more about the first attempt delivery, its significance, and its challenges.

What is first attempt delivery?

A first-attempt delivery is when a driver picks up the package from the last distribution hub and brings it to the intended customer location for the first time. The delivery attempt is successful when the recipient receives the package or the driver leaves at a secure location or with a neighbor, as asked by the recipient.

On the contrary, if the driver couldn’t deliver the package/parcel because the customer was not available, the driver couldn’t locate the address, or due to any other reason, the delivery is considered as failed or unsuccessful. Retailers consider FADR (First Attempt Delivery Rate) to monitor and improve their delivery performance. It is the core KPI to measure how successful a retailer is at getting its deliveries right the first time.

Why is first attempt delivery important?

A failed or unsuccessful delivery attempt impacts customer experience, increases miles traveled and fuel costs, and reduces profit margins. It also incurs an extra cost of rescheduling delivery. Therefore, it is crucial for retailers to ensure first-attempt delivery. First attempt delivery is important:

1. To Minimize Additional Shipping Costs

A first attempt delivery or successful delivery reduces the costs of further delivery attempts (executed to deliver the same order), which is equivalent to delivering three parcels. It also minimizes the hassle of storing the package until the next attempt.

2. To Enhance Customer Experience

Customer experience is a key differentiating factor for most retailers. First attempt delivery within the promised delivery time ensures a delightful customer experience and can turn regular shoppers into brand ambassadors. 

3. To Improve the Customer Retention Rate

First attempt delivery delights customers and increases the chance that those customers will shop again. It is a win-win for everyone, the customer, the delivery driver, and the retailer. 

3 Major Challenges Associated With First Attempt Delivery

1. Customer Unavailability

The unavailability of the customer at the given delivery location leads to delivery failure. It could happen if the customer doesn’t have any idea that a driver will make a delivery attempt. Delivery failure makes the driver re-attempt delivery.

2. Incorrect/Incomplete Delivery Address

A vague delivery address is one among many reasons that are a roadblock to the first attempt delivery. In other words, if the delivery address is incomplete or incorrect, and the driver couldn’t reach a customer on the provided contact number, then it may result in delivery failure.

3. Customer Didn’t Have Enough Cash To Make Payment

To understand this challenge, let’s take an example. A driver makes a delivery attempt, but the customer says that he doesn’t have enough money to pay for his/her COD order. It also results in the first attempt delivery failure.

How does last mile logistics software overcome first attempt delivery challenges?

Here are the four ways how the last mile delivery management software overcomes first attempt delivery challenges:

Minimizes The Chances Of Customer Unavailability With Real-Time Customer Communication

After the customer places an order, the last mile logistics software or last mile delivery solution automatically triggers a tracking link to end customers through Whatsapp, Email, or SMS. Using the link, they can check the real-time status of the parcel along with delivery ETAs.

They also get notifications on each milestone; for example, “the parcel has reached your nearest hub” or “the parcel is out for delivery”. In case the order is delayed for any reason, they receive a message informing the same along with the reason for the delay. Knowing when the order will be delivered increases the chances for customer availability and hence, the first attempt delivery.

Apart from this, the last mile delivery management software also establishes clear communication between the customer and the driver by sharing their contact details (masked for privacy) with each other. Drivers can confirm the availability of the customer before attempting delivery. Similarly, customers can contact drivers in case of delivery rescheduling or help with locating the address.

Helps Locating Delivery Addresses Easily With Advanced Geocoding

Incomplete or incorrect addresses can make it difficult to locate the delivery location. But the last mile logistics solution includes an advanced geocoding feature to convert text-based delivery addresses in the form of latitude and longitude.

This way, the address becomes easily locatable. Advanced geocoding also reduces the chances of delivery delays and misrouting, which are among the common reasons for customers refusing to accept the order.

Last mile delivery management solution leverages technologies such as machine learning to pinpoint address inconsistencies and complete incomplete addresses based on the delivery history. The last mile software also highlights delivery locations with a history of failure.

Offers an Online Payment Feature to Receive Payment for COD orders

It is quite common for a customer to not have cash available at the time of delivery. An advanced last mile delivery management solution includes a feature to send an online payment link to customers. Using the link, they can simply pay online, which results in avoiding delivery failure and increasing the chances for the first attempt delivery.

Helps Providing Multiple Delivery Choices To Improve FADR

Giving customers multiple delivery options not only delights customers but also improves the first attempt delivery rate (FADR). Imagine a customer wants to order a mobile phone, and after adding the address, it shows that it will be delivered on the same day. However, the customer is not available at his/her delivery address as he/she is going outstation for a day or two.

Two things can happen in this scenario. Either the customer will not order the phone, or if he/she orders then it will be a failed delivery attempt. The problem can be solved by providing the customer with multiple delivery options, such as curbside pickup or choosing a preferred delivery time/slot, and more.

A last mile delivery management solution offers unified management of all types of deliveries from a single dashboard. Therefore, retailers can offer multiple delivery choices to their customers and manage their deliveries effortlessly by implementing a last mile delivery management solution.

Shipsy: AI-powered Last Mile Logistics Software To Improve First Attempt Delivery Rate

Shipsy’s smart last mile delivery management software includes top-notch features such as real-time tracking, real-time customer communication, intelligent route planning with advanced geocoding, and more to ensure the success of deliveries on the first attempt. It empowers retailers to have granular level visibility over all consignments to ensure their timely delivery at the right location.

Using the last mile software, retailers can unlock benefits like:

  • 14% reduction in the last mile delivery costs
  • 24% reduction in customer complaints 
  • 26% increase in delivery NPS
  • 31% increase in vehicle capacity utilization
  • 28% increase in customer experience 

To know more about the other features of our advanced last mile software, book a demo today.

Frequently Asked Questions About First Attempt Delivery

What are the common reasons for delivery failures?

Some of the reasons for delivery failures include customer unavailability, customer refusing to accept the order, vague delivery address, and more.

How to measure first attempt deliveries?

Measuring the success/failure of delivery is an important key metric for any retailer. It can be done by implementing last mile logistics software that leverages top technologies to offer such insights and the first attempt delivery rate (FADR).

How does first attempt delivery impact profit margins?

More the number of delivery attempts means higher is the cost of delivery. Moreover, it also leads to the hassle of storing the parcel until the next attempt and rescheduling the delivery on a date and time suitable for both the customer and driver.

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