Simone Lawson
A carrier's failure to deliver can be constituted by a number of factors, including delivery exceptions, natural disasters, and technical issues. Delivery exceptions, such as an incorrect or illegible address, account for a large portion of service failures, and often restrict customers from filing service claims. Carriers may also be liable for injuries sustained by passengers during transport, if negligence can be proven.
| Characteristics | Values |
|---|---|
| Failure to deliver in trading | Occurs when one party in a trading contract doesn't deliver on their obligation. |
| This can be due to a lack of funds or assets on the part of the buyer or seller. | |
| It can also be due to a technical problem in the settlement process. | |
| Failure to deliver in shipping | Occurs when a package is not delivered successfully. |
| This can be due to incorrect/incomplete addresses, inaccessible locations, or absent recipients. | |
| It can also be due to late shipments from suppliers, national holidays, weather issues, natural disasters, or issues with shipping labels. | |
| Failure to deliver in common carrier services | Occurs when a carrier fails to meet safety standards or act with the highest degree of care for their passengers and goods. |
| This can include failing to warn about potentially dangerous conditions, comply with regulations, or exercise duty of care. |
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What You'll Learn
Delayed shipments from suppliers
One of the primary consequences of delayed shipments from suppliers is the risk of lost sales for the seller. Buyers may cancel their orders if the seller cannot deliver on time, leaving the seller with inventory that may no longer be needed or wanted. This can result in financial losses and wasted resources for the seller, who may have to deal with the challenge of excess stock and the need to manage relationships with suppliers who have let them down.
Additionally, late deliveries from suppliers can disrupt the seller's ability to manage their inventory effectively. The seller may be forced to hold on to outdated or excess inventory, tying up valuable storage space and resources. This can be particularly challenging for small businesses or those with limited storage capacity.
Moreover, delayed shipments can have a direct impact on the seller's relationship with their customers. Late deliveries to buyers can lead to frustrated customers, who may choose to take their business elsewhere, even if the seller is not directly at fault. This can result in a loss of customer lifetime value and negative reviews, damaging the seller's reputation and future prospects.
To mitigate the impact of delayed shipments from suppliers, sellers can consider implementing contingency plans, such as using multiple fulfilment centres or alternative suppliers. Additionally, being transparent with customers and keeping them informed about potential delays can help manage expectations and maintain positive relationships.
In some cases, sellers may be able to claim refunds or compensation for late deliveries from their shipping carriers, especially if the delay was due to an error or exception on the carrier's part. However, this process can be time-consuming and subject to limitations, and it may not always be a viable option for busy sellers.
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Illegible or incorrect shipping labels
For instance, if the receiver's name and city are not in English, the system may not be able to process the label. In such cases, while the foreign characters can be retained for the shipper and delivery, the name and city should be translated to English. Additionally, specific carriers have their own requirements for shipping labels. UPS, for instance, requires a "State" field for shipments to the US, Canada, Ireland, and Australia, while for other countries, this field should be left blank. UPS also requires a domestic service level to be enabled for UPS WWE services. Similarly, USPS has strict rules for how the "name" field should be presented on international labels. Both the sender and return address must have a valid two-word value, with at least two characters each, resembling a first and last name.
Incorrect account credentials can also lead to issues with shipping labels. For instance, an error may occur if the UPS credentials entered for a UPS Carrier Account are incorrect. In such cases, it is advisable to contact the respective carrier's support team for assistance.
Furthermore, issues with the ship-to address can cause problems with label generation. Each carrier has its own address validation requirements, and it is crucial to ensure that the address is formatted correctly according to the specific carrier's guidelines.
To avoid issues with shipping labels, it is important to thoroughly review all the information, including the receiver's name, city, ship-to address, and any specific requirements of the chosen carrier. By taking the time to ensure that all the necessary details are correct and complete, shippers can help prevent delays and ensure a smoother delivery process.
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Inability to locate the delivery address
An inability to locate the delivery address is one of the most common reasons for delivery failures. This can occur due to a variety of issues, including:
Typos or spelling issues
A typo or misspelling in the address can cause the delivery driver to go to the wrong location. This can be easily avoided by double-checking the address before sending the shipment.
Incomplete or incorrect address
Sometimes, the address provided may be incomplete, such as having only a name instead of a number, or it may be incorrect due to a mix-up between multiple locations. This can be prevented by ensuring the address includes the main address number, street name, and individual flat number, if applicable.
Inaccessible location
Even if the address is correct, it may still be inaccessible to the delivery personnel due to various circumstances. This could include restricted access caused by renovations, car accidents, or road construction. In some cases, delivery personnel may be prevented from entering the premises due to a locked gate or the presence of unrestrained pets.
Unforeseen circumstances
Unforeseen and uncontrollable events can also hinder deliveries. This includes bad weather, such as heavy rain or snow, which can make roads impassable. Additionally, fallen trees, road closures, or other unexpected obstacles can prevent the delivery vehicle from reaching the destination.
GPS navigation system discrepancies
Different GPS navigation systems may provide varying search results for the same address, leading to potential confusion for delivery drivers. This can be mitigated by providing additional delivery instructions or using a specific GPS map program recommended by the carrier.
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Delays due to national holidays
Delays during national holidays are common, and there are several reasons for this. Firstly, during peak seasons like the holidays, the volume of packages surges, overwhelming logistics networks. This was evident during Black Friday 2023, where the International Retail Federation reported a 30% increase in online shopping, contributing to extended delivery times.
Secondly, retailers may struggle to cope with the increased demand and activity during the holidays. A study by Kurt Salmon found that retailers were responsible for 56% of delays during the Christmas holidays, with many failing to get parcels to carriers on time. Retailers' shortcomings were often due to internal processing errors or a failure to upgrade shipping.
Thirdly, adverse weather conditions during the holidays can also cause delays. UPS, for example, has faced delivery delays due to factors like snowstorms, hurricanes, heavy rains, and severe weather.
Additionally, during national holidays, there may be schedule changes or increased traffic challenges, especially with inland transportation. Many factories close for extended periods during holidays, leading to backlogs and shipping delays once regular work resumes.
To mitigate delays during national holidays, proactive measures can be taken. These include double-checking recipient addresses, selecting shipping services that align with the urgency of the shipment, and staying informed about weather forecasts, public holidays, and potential disruptions. Planning ahead and leveraging technology, such as route tracking and delivery notifications, can help accommodate potential delays.
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Processing claims and adjusting invoicing
Understanding Shipping Invoices:
Shipping invoices can often contain errors or hidden charges. It is crucial to scrutinize these invoices to identify any discrepancies or overcharges. Pay close attention to items like dimensional (DIM) weight calculations, surcharges, and billing discrepancies. By reviewing these invoices thoroughly, you can identify areas where you may be able to save money or recover incorrect charges.
Identifying Service Failures:
Shipping carriers may not always be transparent about their service failures, such as late deliveries or delivery exceptions. It is important to be vigilant in monitoring these failures as they can impact your bottom line. Late deliveries, incorrect addresses, inaccessible locations, and delivery exceptions like shipping errors or returns can result in significant costs. Keep a close eye on delivery tracking information and proactively address any issues that may arise.
Claiming Refunds:
When service failures occur, you have the right to claim refunds from the shipping carrier. These refunds can help offset the costs associated with late deliveries, billing errors, and wrongly applied surcharges. You can choose to manually claim these refunds, but it can be a time-consuming and tedious process. Algorithm-based services offer a more efficient alternative, automating the identification and submission of claims, helping you save time and resources.
Managing Delivery Exceptions:
Delivery exceptions, such as shipping errors, returns, and delayed or undelivered packages, can be costly and impact customer satisfaction. While some exceptions may be beyond anyone's control ("acts of God"), it is crucial to have contingency plans in place. Consider using multiple fulfillment centers to avoid delays caused by national holidays or weather-related issues. Additionally, encourage customers to utilize delivery management tools to ensure successful deliveries and reduce the chances of failed delivery attempts.
Adjusting Invoicing:
Regularly review and adjust your invoicing processes to account for any discrepancies or changes in shipping charges. Compare your shipping invoices with your own records to identify any inconsistencies. By staying on top of invoicing adjustments, you can prevent cumulative losses over time and maintain accurate financial records.
By diligently processing claims, addressing service failures, and adjusting invoicing, you can optimize your shipping processes, reduce unnecessary costs, and enhance customer satisfaction.
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Frequently asked questions
Delivery exceptions are reasons why carriers and e-commerce businesses provide you with a tracking number for your packages. This transparency gives you visibility into what’s happening once the shipment is in the carrier’s hands. Some of these exceptions include reasonable factors like delays resulting from Acts of God (natural disasters, severe weather, etc.).
Packages may be delivered late if a national holiday occurs — either in the country of origin or the destination country — while a package is in transit. If there is a weather issue or natural disaster that renders a delivery route unpassable, the package will likely be delayed.
Shipping carriers are known to hide information on service failures such as late deliveries to prevent themselves from being shown in a poor light. However, claiming refunds for service failures like late deliveries could save you 12-14%, and an additional 6-8% could be saved through the submission of claims for other billing errors and wrongly-applied surcharges.
You could manually claim refunds for the service failures of your shipping carrier, or you could make use of an automated algorithm-based service to do so. While shipping carriers allow you to file claims manually, they are not exactly a viable option as they are subject to certain limitations.
In addition to lost shipping and/or product costs, delivery exceptions may also result in a loss of other resources like marketing dollars and unrecoverable customer lifetime value (CLTV) from losing a customer to a delivery exception.
