Home delivery failure costs soar to £1 billion

Home delivery failures are costing around £1 billion a year according to the Interactive Media in Retail Group (IMRG) report “Valuing Home Delivery”. The report says the cost of delivery failure is almost a three-way split among carriers/logistics providers, consumers and retailers. The inefficiencies add £1.45 in total costs for each transaction. The compounded cost to the retailer is much higher – as much as £9.54 for each failed delivery. Lost business, however, is a staggering £77.82. Carriers lose over £6 for each undeliverable consignment. Consumers are paying the lions’ share of the total bill of £22.68. These costs are even higher for failed deliveries of larger, bulkier items requiring specialist delivery such as furniture and electrical goods. Other interesting findings from the IMRG report highlight the importance of delivery success to the consumer. Forty-three per cent say that delivery experience influences their choice of retailer. Also, poor delivery performance has resulted in nearly 40 per cent of consumers from using a certain retailer. “These statistics should signal a call to action for retailers, carriers and logistics providers. Efficient and effective home deliveries make customers happy and help build brand loyalty. Axida HDi provides a comprehensive solution that puts retailers and their transport partners in control of the entire home delivery process. The software also communicates with the customer, sending them a text message or email to confirm that their delivery is due, which ensures that they are at home to receive their goods,” says Wayne Holgate, Director, Axida. “Our advanced software ensures first-time home delivery success by managing the complete delivery lifecycle. It prevents failure by providing full visibility from order to point of delivery. This clear picture of events boosts all-round efficiency and improves customer service, which is essential for successful deliveries. Importantly for the retailer and the carrier, Axida HDi balances service efficiency with the cost of delivery,” he adds.