Why Your First Delivery Attempt Matters and How to Raise First Attempt Rates

First Delivery Attempt Matters

Getting complete control of last-mile deliveries is one of the most daunting tasks for businesses today. Yet, while many choose to remain harmoniously ignorant to this fact, mastery of last-mile delivery can make or break a brand. 

One of the biggest reasons why first delivery attempts matter is that it directly impacts the profitability of a business. A successful first-time delivery offers a delightful customer experience and eliminates additional costs associated with multiple delivery attempts.

‘First Time Right’ (FTR) is the concept that ensures that a delivery process is completed successfully in the first attempt itself. It is unlikely that any company will have a 100% FTR, but if the existing process inefficiencies are curbed proactively, you can look at an FTR score in the upper 90s. 

Why First Delivery Attempt Matters

It is safe to say that the first delivery attempt matters dearly to a brand, and here are the primary reasons every B2B business should strive for a higher FTR score.

Mitigate Extra Costs

When a package is delivered on the first delivery attempt, you save a lot of time and money in storage costs, delivery rescheduling, reverse logistics, and multiple deliveries attempt to the same address. 

In a nutshell, it costs three times more to deliver an order with multiple attempts than first-time delivery. Here are a few areas affected by first delivery failure:

  • Late final delivery 
  • Higher chances of giving an unsatisfactory delivery experience to the customer
  • Resources spent on communication with the customer
  • Warehousing costs
  • Higher fuel costs
  • Reduced profit margins per order
  • A higher carbon footprint because of gases emitted during transport

Poor Customer Loyalty and Engagement

With a rapid increase in online ordering, customers expect swift deliveries and are more likely to stick to a brand that can deliver their packages in the shortest time. This makes first-attempt deliveries more crucial than ever.

Many customers tend to stay loyal to a brand that fulfills their delivery time commitments, and there is a higher chance of gaining positive word of mouth from them. As a result, they will spend more money with your brand and encourage new customers to give your company a chance. 

So, a streamlined last-mile delivery service brings your business a wide range of benefits. Some of them include:

  • Customer loyalty
  • Repeat business and higher purchase frequency
  • Willingness to pay more for same-day deliveries
  • Better engagement and a higher chance of up-selling new products
  • Reduced customer churn rate and a positive word of mouth for your business
  • More customer endorsements to attract new customers

As customers gravitate towards faster delivery options, you should grab the bull by the horns and work on improving the last-mile delivery aspect of your business. Once you have a process in place, you will gain a competitive advantage over rival companies and create a positive outlook for your brand. 

Reasons Behind Failed First Delivery Attempts

Before we look at ways to improve your FTR score, we should also consider the factors that affect the last-mile delivery process dearly. Here are some of the most common reasons why first-time delivery attempts fail.

  • Unforeseen traffic congestion
  • Incorrect customer details such as their address and location
  • Wrong access codes or contact numbers
  • Shortage of delivery partners in the field
  • Insufficient delivery vehicles 
  • Lack of proper equipment when unloading high-value products (prominent during white-glove delivery services)
  • Customer unavailability at the time of delivery

How to Increase First Time Delivery Rates

While there are multiple ways to reach this goal, the most straightforward route is to analyze your existing delivery strategy in-depth. Your aim should be to identify the root causes of the problems and implement sustainable solutions in the long run. 

First Delivery Attempt Matters
Freepik

Here is how you can do it:

  • Step 1: Find out the reasons behind your low FTR score by analyzing the reasons mentioned by the delivery partners on every failed delivery attempt. 
  • Step 2: Narrow down the most common reason for failure and assess how frequently it happens. Also, add the amount of time and resources required to resolve the failed attempt and create a clear financial picture of the dollars lost in the process. 
  • Step 3: Find the root cause of the problem. Whether it is a problem of meeting traffic congestion without notice, a lack of infrastructure needed to make the deliveries on time, or a shortage of workforce in the field, pinpoint the problem and then work towards a solution.
  • Step 4: Resolve the problem and remove any underlying inefficiencies in the process. Whether you need more staffing, a better delivery fleet, or a route optimization system to alert the teams of incoming traffic problems, make sure that you do what is needed to raise the overall operational efficiency of the delivery arm of your business. 
  • Step 5: Implement technology to eliminate the problems detected and proactively deal with the issue that can arise in the future. It is always a good idea to add delivery management software into your technology stack to overcome modern-day last-mile delivery challenges.

Next Steps

Incorporating delivery management software into your business is the best way to deal with all the problems associated with last-mile delivery. NetworkON is an AI-Powered delivery management solution that can be customized for your business and can have a positive impact on your operational efficiency.

It is an end-to-end solution that can increase your FTR score by creating an organized and transparent delivery operation. Some of the core features of NetworkON include: 

  • Automatic order processing and assignment 
  • Delivery fleet tracking and management in real-time
  • AI-powered route optimization and planning with intelligent geofencing capabilities
  • Establishing a clear line of communication between delivery teams and customers to determine the right time of delivery
  • Generating accurate ETAs for orders in transit
  • Push notifications via SMS and mobile app for regular updates about an order’s status
  • Access to accurate customer information in a digital layout 
  •  Generating electronic proof of delivery for a transparent order fulfillment process
  • Reducing carbon footprint by eliminating the need for physical paperwork at the time of delivery
  • Seamlessly integrate with multiple third-party applications using NetworkON’s App Marketplace

Sounds too good to be true? Don’t take our word for it. Instead, try NetworkON for your business today. To look at all the features NetworkON offers, click here.

Get started with a quick assessment of your existing delivery strategy by our experts today. For more information about NetworkON, email us at info@networkon.io or visit our website. In addition, you can learn more about how this intelligent delivery management system transforms businesses in our blog section.

0 Comments

Leave a Reply

Your email address will not be published.