How to Minimize the cost of Failed/Fraudulent Delivery Attempts

We all remember the incident wherein a group of delivery agents in Indonesia made IDR10m Rp per day by creating fake delivery tracking. To the delivery company’s system, the drivers had completed their deliveries and were eligible to receive their payments. Years later, news reports are showing that not much has changed in the country’s delivery fraud landscape.

A failed delivery could mean a lot of things: anything from a customer not being reachable at the time of delivery, to cash not being available to them at the moment. For time-sensitive deliveries, the customer may simply reject the order. After all, a person ordering Nasi Goreng want it delivered by the next hour.

Adding to these challenges, several delivery agents have started using illegal apps that try to beat delivery platforms by faking device locations. This means the delivery partners can receive an order from an app without being at the hub, dark stores, restaurants, etc.

To sum up, here are all the major challenges by e-commerce operators in their last-mile deliveries:

1. Location spoofing (including pickup locations and fake deliveries
2. Customer unavailability
3. Inefficient delivery route and order clubbing
4. Inaccurate estimate time of arrival
5. Poor management of Non-Delivery Reasons (NDRs)

Ways to address failed deliveries

For location spoofing, modern SaaS-based logistics solutions have advanced filtering algorithms that check if the driver’s device is using a mock location. The system automatically captures the supposed geographical location at a predetermined interval of, say, 10 seconds. The system also raises an alert if the delivery route does not match the suggested system route, and additionally validates the delivery status with the customers. For the other challenges:

1. To prevent customer unavailability, tech solutions can be used to ensure a transparent delivery system wherein customers are constantly updated on the delivery progress. This transparency optimizes operations significantly. As a direct result, customer experience will be improved, alongside a reduction in customer complaints and likely a boost in net promoter score.

2. For effective route management, using SaaS-based tracking platforms can help riders deliver via the most efficient path. These systems convert the location data into geocodes, leading to further optimization. Using them, riders can carry multiple orders and deliver them on time. By some statistics, this system can increase a fleet’s vehicle capacity utilization by some 30% and reduce last-mile delivery costs by around 14%.

3. Lastly, SaaS-based delivery-tracking platforms may offer the option to send a payment link to customers in case the required cash is not available. The app can also demarcate areas with a disproportionately high history of failure. This data-driven approach empowers businesses to make informed decisions as needed.

In a nutshell, all of this enhances the first-attempt delivery rate and customer experiences. The saved costs simply serve as the cherry on top!