![]() If there is a delay in the ship date due to problems in the fulfillment center, the delivery will be late. ![]() SHIP DATE – The ship date is the date that the order is shipped from the warehouse or distribution center to the recipient. If this process gets delayed, on time delivery is essentially impossible to achieve. This process includes picking the specific items, preparing them for shipping by packaging them, and getting shipments out the door to the delivery or courier service. With the number of eCommerce orders skyrocketing, companies must focus on efficiency in the eCommerce fulfillment process. This creates long lead times and unavoidable delays which will most likely cause customer complaints and in other circumstances, cancelations. If your teams do not have inventory management under control, customers can place orders for products that simply aren’t in stock. ![]() If these issues are prioritized and addressed, the OTD rates will rise. There are a few primary reasons for late delivery (aka delivering after the specific date specified). What causes a business to deliver after the promised delivery date or time? The bottom line: on time delivery service is a key factor in maintaining high customer retention rates and keeping customers satisfied. ![]() Delivery providers, too, risk giving their shippers a bad reputation and losing their clients. In today’s digital era, those customer complaints may quickly turn into negative reviews online, on a brand’s website or on social media. Even more staggering is the fact that 57% of customers won’t return to a retailer after three late deliveries. The numbers don’t lie: according to a GreyOrange Survey, 45% of consumers today expect 2-day shipping or less when they place an online order. They want their orders to arrive on the delivery date, within the correct time window. They don’t care about supply chain issues, problems with inventory management, or any other reason that may cause their order to be delayed, whether it be due to the suppliers, delivery person, stock problems, etc. Lower on time delivery rates lead to more customer complaints, customer service calls and subsequent costs for your business, as well as irate customers who will choose not to order again.Ĭompetition is fierce and customers have high expectations today. On time delivery is one of the key ways in which customers judge the delivery experience, and therefore a critical factor in customer retention. In this post we’ll dive into the main issues surrounding on time delivery, and what you need to do to improve your OTD KPIs and in turn, increase customer retention. Since customers with bad shipping experiences will not order again from the same brand, increasing on time delivery metrics should be an imperative for every brand, 3pl logistics provider, carrier, and anyone who does deliveries.ġ in 5 consumers won’t forgive brands who don’t deliver on time. Even a single failed delivery attempt can have a domino effect and cause a delay in lead times for the rest of the orders delivered on the driver’s run. It is becoming harder to get deliveries out and to customers on time, resulting in missed and late deliveries.ĭropping on time delivery rates is an issue both for customers (frustration, lack of trust in the brand) as well as for logistics operations. Here’s where most companies run into problems::ĭelivery volumes are expanding at an unprecedented rate. Measuring on time delivery rates reveals just how effective a courier service and brand are, and can help improve rates of customer satisfaction and return purchases. This KPI shows whether or not an organization is meeting its goals in regards to promised delivery times, and is critical for both measuring carrier performance and maintaining customer satisfaction. On time delivery, or OTD, is the metric used to measure supply chain efficiency. Curious what on time delivery is, why it’s so important, and most importantly, how to improve it? This post is for you.
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