Most Common Delivery Service Issues & Tips on How to Avoid Them

Parcelmagic Admin

Jul 22, 2022

People can now do things faster and more efficiently than ever before as technology continues to change the structure of various industries. With the bombarding rise in the e-commerce business during the pandemic, the dynamics of the logistics industry are rapidly growing and will continue to grow considerably in the next few years. People prefer online shopping over going to a physical store because it is more convenient. Everything is now available to the consumer with just one click. Takes only a few clicks and voila! You get exactly what you want! As people are more inclined towards online shopping now, ensuring a quick package delivery process is an essential business in this industry. It is impossible to avoid problems when running a delivery service, you may have to deal with complaints on a regular basis.

There is no magic ingredient that will make them go away, but you can do a lot to reduce them and improve customer satisfaction. Everything hinges on effective delivery management.

Let us examine all of the issues that commonly surround delivering services.

  • Cost of Daily Operations
  • Lack of visibility
  • Delayed Delivery
  • Competitive Pricing
  • Poor Customer Service
  • Delayed Customs Clearance
  • Incorrect Delivery Address
  • Lost, Damaged, or Returned Orders

Cost of Daily Operations

The cost of delivery is a significant issue in the retail industry. Fuel, vehicle maintenance, payroll, return deliveries, free shipping, customer service, and other operational costs can all eat into your profit margin. Worse, if you don't figure out a way to keep those costs down, you may have to pass them on to your customers. According to one source, last-mile delivery costs account for 53% of total costs. As a result, one of the most important initiatives among retailers today is lowering the cost of last-mile delivery.

If you want to reduce delivery costs, you should look for ways to improve efficiency. You can do so by reducing resource waste so that you can get the most out of them. Optimization is a key solution to this problem. This claim is supported by statistics. Organizations that focus on supply chain optimization save 15% on costs compared to those that don't. 

A big part of the solution is how you utilize technology. You must look for tools that will automate the process and allow you to complete tasks automatically and with minimal effort. Once you've started using technology, you can use it to identify opportunities to improve supply chain performance. After that, it's just a matter of identifying wasteful processes so you can eliminate them, resulting in lower costs for your company.

Lack of Visibility

The most important requirement for ensuring customer loyalty is visibility into the delivery processes. Buyers want to know exactly where their package is and when it will be delivered. Without it, a business can become a victim of countless inefficiencies, and such inefficiencies can potentially lead to a delivery delay or losing shipments. Some businesses have begun to provide tracking codes so that customers can see the status of their orders. However, in an age when technology pervades every aspect of our lives, tracking codes are insufficient. Customers expect real-time tracking information on their packages. They must be present at every stage of the final mile.

A recipient can track their package from start to finish using simple dashboards on desktop and mobile applications. This gives the entire process a sense of transparency. Furthermore, if the customer has any plans involving the delivery, they can plan them precisely now that they have the exact delivery timings. Sign up for delivery management software that provides real-time status to increase transparency in last-mile delivery. This enables customers to track packages all the way to their front door. 

Delayed Delivery

Trying to keep delivery services on schedule is one of the most serious and major concerns for all delivery service providers. Late deliveries can be a problem for both the recipient and the sender. The recipient does not want to wait any longer than necessary for their delivery, and you do not want your company to be known for failing to deliver on time. Customers will make plans around the time your courier has specified for delivery, so if that deadline is missed, they will be frustrated and affected negatively. Some common causes for late delivery include incorrect documentation technical failure, logistics Issues, and poor weather.

Taking a few steps to organize a well-structured delivery system can significantly reduce late deliveries. Setting a minimum delivery time will allow you to be more focused on your orders. The delivery time should be realistic so that you do not put yourself under any unnecessary pressure to deliver. Your shipping time, on the other hand, should not be a hindrance to the customer. Customers place orders in the hopes of receiving their products in a timely manner.

It is clear that some of your products are more popular than others. As a result, you should try to update your inventory to replace products that have already been delivered. Always keep a warehouse ready to ship your products to their final destinations. Arrange the most popular products first, followed by the least ones.

Automation plays a significant role in reducing delivery times. Investing in automated logistics software can be costly, but it can help you avoid delivery delays. Based on order time, automated software determines which products to ship. During the holidays, businesses often see an increase in orders and sales. Most courier companies, unfortunately, do not operate on holidays. As a result, you'll need to make another plan to deliver the orders on time during these times. To avoid delivery delays, send your order before the holiday season begins.

The most practical way to avoid delivery delays is to hire a fulfillment business service. A fulfillment service is a third-party company that stores, packages, and ships orders on behalf of an e-commerce company. Hiring a fulfillment service has numerous advantages. Reduce operational costs, increase business focus, increase scalability, and avoid delivery delays, among other things. With the fulfillment service, you won't have to buy automation software or worry about delivering goods on holidays.

Competitive Pricing

Nobody wants to pay high prices for a service they aren't getting. You must strike the right balance between reasonably priced and outrageously charged. On the other hand, maintaining quality service will be difficult if the package is too low in pricing.  Customers' purchasing behavior is an important factor to consider when developing a competitive pricing strategy. When your product is in a mature market with a large number of substitutes and competitors, the pricing decisions of your competitors could be a key factor in determining your profit. This is where competitive pricing, also known as setting prices based on competitors, becomes one of the most popular pricing strategies. 

The key is to provide customers with specialized services that are more personal and down-to-earth. This is one way to increase the potential for constructing one's own market niche. Trying to be the biggest is not the best way to succeed. Instead, strive to be unique and differentiate your services from those of your competitors. Customers are drawn in by new features such as advanced order tracking, custom packaging, and the incorporation of other innovations.
To meet these standards, they will need to use the most up-to-date courier delivery solutions. Another way to get a buzz going is to have operations in place that will turn these challenges into opportunities.

Poor Customer Service

Any interaction between a customer and an organization that results in a negative opinion or dissatisfaction is considered bad customer service. Particularly troubling incidents can damage a company's reputation, increase customer service failures, and reduce revenue. While some examples of poor customer service are subjective, others are universally recognized, and customer service representatives should be prepared to handle them appropriately. 

The following are some of the most common examples of poor customer service:

  • Transferring customers from agent to agent
  • Lack of empathy
  • Slow response time or keeping the customers on hold for too long
  • Excessive use of automation

Some of the key points to remember while facing such issues are as follows:

Transferring customers from agent to agent: Problems like this are usually structural. By combining knowledge-sharing and the right tools, customer service teams can provide first-contact resolution. For example, an interactive voice response system like Zendesk or Five9 can collect customer information and automatically route their call to the appropriate agent.

Lack of empathy: The most effective way to address this issue is to properly train customer service representatives in empathy. It may not seem like much, but making these interactions more humanly can go a long way toward de-escalating a tense situation, creating a welcoming environment, and boosting productivity.

Slow response time or keeping the customers on hold for too long: Having enough support staff to handle typical request volumes could be the answer. Alternatively, businesses can invest in an omnichannel contact center, which integrates all customer communications into a single platform regardless of how they contacted the support team.

Even the most upbeat caller will experience a sense of despair at the prospect of being placed on hold for several minutes. It's critical to reduce your queue times as much as possible. You can upload your customer service variables and create dashboards with your most relevant KPIs, such as response time and identify the average length of a customer's wait, using a contact center solution. Custom quality assurance scorecards allow you to create your own contact center metrics to evaluate your team's performance, and you'll know if callers are waiting too long on hold.

Excessive use of automation: To solve this problem, support executives must rethink IT automation as primarily a tool for improving customer experience rather than cutting support costs.

Delayed Customs Clearance

Customs issues can cause significant delays. As previously stated, late deliveries/responses result in dissatisfied customers. To pass through customs without difficulty, your shipment must have all of the necessary documentation. Late deliveries can harm your business's reputation. To get around this, we recommend using a courier company that is well-known for having extensive customs knowledge and experience. This means they'll be more likely to notice any potential issues with shipments lacking the proper documentation. Before shipments are sent, the right courier will work with you to find a solution, which will prevent any problems with shipments before they are sent.

Incorrect Delivery Address 

It is human to make mistakes. Packages are sometimes delivered to the wrong address, where they are not supposed to be. It could be a case of human error, or the customer may have entered the wrong address. 

In this case, the business usually settles for client compensation, as it should. If this happens because of the sender's error, it can harm the brand's image and lead to customer loss. When the package management system is inefficient and the business does not use package management software, all of these issues arise. These issues can be virtually eliminated by using current package management software and a shipping workflow.

Lost, Damaged, or Returned Orders

Probably the most distressing experience a customer can have begun with the question, "Where is my package?" What causes a package to be misplaced? There are several possibilities, including a simple misplacement, a damaged shipping label, or unintentional removal. Can technology save the day? Proof of Delivery can help to protect everyone involved, from the organization to the intended recipient. The courier and the customer will always know where the package is during the delivery process thanks to real-time tracking and tracing capabilities.

Another worst-case scenario, receiving a damaged package. The packages should be handled with care and come with a label that says "handle with care" or “fragile”. This is not the only label you'll need. Every package should have its own unique label. Take care of these details before delivering the package. You can avoid the customer's resentment and save money by taking care of the package before it goes out for delivery. Airbags, cushioned packaging, Styrofoam balls, and paper balls are other options for preventing package damage.

Wrap Up

Advanced courier businesses can only succeed if they can keep up with the pace of time. Though eCommerce merchants are looking for low-cost delivery options, implementing the latest courier delivery systems will give your company a distinct identity. Customers are willing to pay a little more for trackable delivery, which most vendors charge a premium for. Customers can be charged a premium for faster delivery, along with other extra services such as package guarantee, tracking, and post-delivery pickup if the package needs to be sent again. Whatever precautions are taken, technical or human error is unavoidable. Implementing the discussed tips and terms with greater focus, on the other hand, can help the company's reputation to sustain and grow.