USEFUL TIPS TO DEAL WITH SHIPPING DELAYS
Accurate, damage-free, and on-time deliveries are crucial for business success. An efficient delivery service is vital to the success of your business. In this age of ecommerce, customers have higher expectations when it comes to the delivery of their goods. If you are unable to meet your delivery schedule, it can leave your customers dissatisfied with the quality of your service. Despite seeming relatively harmless, shipping delays can hinder supply chain efficiency, decrease customer loyalty and hamper sales significantly and can wreak havoc on your brand reputation. Sometimes delays by shipping freight forwarding companies are inevitable, like in COVID-19 when entire manufacturing and distribution units came to a standstill. In this article, we’ll discuss what causes shipping delays, the negative impact of delayed deliveries on your business, how to deal with late deliveries, and how avoiding delayed deliveries can boost your customer lifetime value.
What causes Shipping delays?
To best
avoid any shipping delays, it’s best for businesses to understand what causes
them. It will also help improve customer satisfaction and the entire
customer experience. Part of this includes mastering and truly
understanding last mile delivery and how it can affect customer
retention
1.
Current Events
Global current events can
have a big effect on shipping if they prevent supply chains from operating
normally. We’ve seen this in the current global pandemic or it may also occur
during war situations or any government regulations or other emergencies. Coronavirus shipping delays have
been felt across the world, from China and Singapore to Italy, India, the UK,
and the US. FedEx shipping delays (and those of other couriers) have increased
due to lockdowns, curfews, and other measures put in place by governments to
help combat the disease.
2. International vs. Domestic Shipping
Congestion in airports and bad weather
are some of the leading causes of international shipping delays. Customs issues
can also hold up packages, which is why it’s important to ensure your customs
paperwork for international shipments is properly and correctly filled in.
However, domestic shipping is more
affected by traffic, construction, major roadblocks and detours, and accidents.
All shipments can also be delayed by failed delivery attempts, high volumes
(especially around holiday and peak periods), and vehicle trouble.
3.Logistical Oversights And
Labour Shortages
A lack of proper logistical
infrastructure can cause order sorting and processing delays. Smaller
businesses, which handle everything in-house, can have orders pile up as they
make time to ship them. Inefficient warehouse and inventory management are
major logistical challenges to be overcome.
Labor shortages or insufficient
delivery vehicles at hubs or distribution centers can cause significant order
delays.
Using old
software during shipping isn’t efficient. It may cause problems due to the
inability to integrate new features and technologies that may help avoid or
mitigate shipping delays.
By investing in
updated shipping technology, such as using cloud-based software, businesses can
provide a more streamlined approach to the shipping process. This
includes 3PL which allows transportation companies to stay connected
using real-time data.
4. Peak Season
During peak season,
your freight may be delayed due to high shipment volumes. Festivals, Holidays,
weekends are something many of us usually look forward to . These are prime time for eCommerce, and the industry
often experiences huge spikes in orders
during this period. To avoid shipment
delays during these times due to the
large volume of orders, businesses must plan ahead to establish efficient
logistics systems.
5. Incorrect
Documentation
Not having the
right documents for your shipments can cause shipping delays. This is possible
during different parts of the shipping process including when the package
leaves the port of origin, clears customs, or arrives at the final
destination. Common documentation errors include:Missing paperwork,
Inaccurate content description and Improper labelling.
6. Inaccurate shipping information
When customers give a misspelled or
incorrect address, or when the retailer doesn’t document the customer’s order
properly, the courier company may not have enough information to correctly
deliver the package. This can cause shipping delays, increased last mile delivery costs, or worse, the package never arrives.
7. Customs
When
it comes to international shipments, customs are a huge factor in shipping
delays. It’s crucial to have all required documents handy to avoid issues and
delays as much as possible.
Delays
are inevitable without the necessary documentation and this can jumpstart additional
complications with cargo inspections. If items are held up by customs,
businesses should have a backup plan ready. This includes having relationships
with courier services that keep up with accurate documentation.
The
Impact of Shipping Delays
Shipping is a crucial part of any
trade. That’s why every top
freight forwarding companies in India keep in consideration the fact that carts abandoned due
to shipping delays are lost sales and revenue for retailers. If that
weren't bad enough, shipping delays can also prompt dissatisfied customers to
leave bad reviews that dissuade other potential buyers from going through with
their purchases, further reducing sales and revenue. Here are 4 ways that late
freight shipments can negatively impact your business.
1.
Chargeback penalties
If you miss a delivery appointment or
deadline, a retailer or customer may assess a chargeback, a penalty for
not being in compliance with their requirements. In other words, make a late
delivery, make less money.
2.
Higher costs
Late or missed freight deliveries mean
having to make another delivery, which incurs additional costs for fuel, driver
time, and additional charges from your freight carrier.
3.
Customer loss
If you incur enough late deliveries,
your vendor scorecard grades could place you in serious jeopardy of losing the
business.
4.
Increased Customer Acquisition Cost
Losing a customer is bad, but
replacing a lost customer is extremely expensive. As everyone knows, it’s much
less costly to keep an existing customer than find a new one.
5.
Impacts to your planning and production
Late inbound freight shipments can
delay production, which impacts inventory levels, which can impact sales; all
of which negatively impacts cash flow.
6
TIPS FOR DEALING WITH SHIPPING DELAYS
Online retailers work
very hard to ensure customers have a seamless shopping and shipping experience.
While eliminating shipping delays entirely may not yet be possible, there are
ways to minimize and manage them. Here’s what you CAN do to prevent and manage shipping
delays:
1. Choose reliable providers
- Work
with vetted providers you can trust
- Pay
close attention to your providers’ experience and performance reviews
- Plan
any extra services you need for delivery of your goods to avoid surprises
down the line
2.
Ensure alignment between
your providers
- Give
your supplier accurate contact information for your freight forwarder –
and vice versa – to ensure smooth communication
- Make
sure all your providers have the correct reference number for your goods
- Clearly
differentiate shipments from the same supplier to ensure timely delivery
of each shipment
3.
Make sure all paperwork is
in order
- Spend
extra time reviewing all the documents related to your shipment
- Make
sure your goods are classified with the correct HS code
- Work
with your providers to file paperwork on time
4.
Work with your forwarder to
arrange a smooth warehouse drop off
- Get
the estimated time of arrival at the port from your freight forwarder
- Ensure
in advance that any special equipment required for handling is available
- Arrange
for quick freight pickup right after unloading
- Book
warehouse space ahead of time
5.
Plan ahead for peak season
- Avoid
shipping goods during peak season as much as possible
- Keep
in mind any promotional campaigns or expected spikes in demand
- Prioritize
shipments of fast-selling goods
6.
Plan ahead so you’re not
caught short on inventory
- Keep
buffer inventory for markets likely to be impacted by delays
- Store
inventory across several warehouses to optimize transit time and costs
- Account
for avoidable causes of shipping delays – but remember that some delays
are not avoidable
Ultimately, managing delays in the
delivery process comes down to good communication and demonstrating to your
customer that you want to remedy the situation as quickly as possible. If you
can do this effectively, your brand will gain a competitive advantage and a
base of long-term, loyal customers who trust that you can deliver. AFM
Logistics is the best shipping company in India that can help you
streamline your delivery operations and ensure that you stand out from other
delivery businesses.



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