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In eCommerce logistics management, lost shipments are costly. They seriously dent a business’s profit margins and bottom line, as well as customers’ trust and the smooth operation of that business. We understand the frustration and financial sting of every lost package.
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Lost shipping is an issue that hinders the smooth flow of the supply chain. However, with the right strategies and tools, some companies can significantly reduce lost shipments and recover losses. Through proven strategies, they can turn these setbacks into opportunities to strengthen customer relationships.
This guide will walk you through a comprehensive approach, covering everything from proactive prevention to tech-driven solutions and damage recovery tactics.
Understanding Lost Shipments
The reality of lost shipments is harsh. It’s a multifaceted issue plaguing the logistics system. Packages can get lost due to simple human error—a misplaced label, a wrong turn on the delivery route, or even mishandling at a sorting facility. Unfortunately, theft is also a growing concern. In-transit theft, where packages disappear from trucks or warehouses, is also a reality.
A lost shipment is a chain reaction of negative consequences. The immediate cost of the product, shipping fees, and potential chargebacks can add up quickly. Additionally, unhappy customers will likely voice their frustration online or to friends, tarnishing your brand’s image.
Understanding these different facets of the lost shipment problem is the first step toward finding effective solutions. By making this understanding your base, you can protect your business, your customers, and your hard-earned reputation.
Proactive Prevention Strategies
Accurate Shipping Information
The smallest detail can make a big difference in logistics. That’s why accurate shipping information is your first defence against lost shipments. A misplaced digit in a postal code or a missing apartment number can send a package on a wild goose chase, causing delays and headaches for everyone involved.
CASS-certified address verification software is a spell-check for addresses. It cross-references your customer’s address with the official USPS database, catching errors and ensuring the address is valid and correctly formatted.
The shipping label needs to be complete, accurate, and easy to read. Double-check every detail—the sender’s and recipient’s addresses, the package weight, the shipping class, and the all-important tracking number. Ensure the label is securely attached and the information is legible, even if it gets roughed up in transit.
Secure Packaging
Beyond aesthetics, the packaging of your shipments serves crucial purposes; it ensures the protection of the contents and acts as a deterrent against potential threats. Therefore, plain, unassuming packaging is like camouflage for your goods, making them less appealing to potential thieves.
Sturdy materials, like corrugated cardboard boxes and appropriate padding, are crucial for keeping your products safe during their journey. A damaged package is more likely to be lost or misplaced.
Real-Time Tracking
Real-time tracking is a necessity in modern logistics. It gives you and your customers a clear view of where a package is at any given moment. More than half of consumers consider tracking a top priority when shopping online. By integrating tracking technology into your systems, you’ll meet customer expectations and gain a valuable tool for identifying potential problems early on.
Delivery Options
You wouldn’t leave a package on your doorstep if you knew you weren’t home. The same goes for your customers. By offering flexible delivery options, you give them control over when and where their package arrives. This could allow them to schedule deliveries for specific times or provide alternative delivery locations. For those high-value items, consider adding a “signature required” option. It might seem like a small step, but it adds an extra layer of security, ensuring the package gets into the right hands.
Third-Party Logistics (3PL) Partnerships
If managing a supply chain makes your head spin, partner with 3PL logistics companies. These logistics experts handle everything from warehousing to fulfilment and shipping. They have the experience, resources, and network to optimise your operations, including reducing shipping zones and speeding up delivery times.
Take NimbusPost, for example. They boast a presence in four major countries and 30 fulfilment centres in overseas markets. Partnering with a 3PL like NimbusPost can take a massive weight off your shoulders, allowing you to focus on your core business while knowing your shipments are in capable hands.
Immediate Actions
If a customer reports a missing package, the first step is to verify the loss. Give the carrier a reasonable window – usually around seven days past the expected delivery date – to locate the package. Sometimes, a delayed shipment can cause unnecessary alarm.
Once the loss is confirmed, act swiftly. If the package appears to have been lost rather than stolen, file a claim with the carrier. It’s crucial to be upfront and proactive in communicating with your customers.
Insurance and Claims
For high-value items, shipping insurance is non-negotiable. It’s a safety net for your business, protecting you from significant financial losses. If a package is lost or damaged, insurance can cover the cost of the goods, shipping fees, and even potential charge backs.
Filing an insurance claim might seem like a hassle, but it’s a crucial step in recovering your losses. Each carrier (FedEx, UPS, USPS, DHL) has its own claims process, so familiarise yourself with their requirements. You must provide details about the shipment, proof of value, and supporting documentation.
Customer Satisfaction
Losing a package is frustrating for everyone involved. But for your customers, it’s a broken promise, a potential disruption to their plans, and a test of your company’s reliability. Handling a lost shipment can make or break your customer relationships.
Offer a prompt replacement or a full refund, no questions asked. This may seem like an added expense in the short term, but consider it an investment in long-term customer loyalty and the lifetime value they bring to your business. A little empathy and quick action can go a long way in turning a negative experience into a positive one.
Additional Tips and Strategies
Technology
The Indian logistics ecosystem constantly evolves, and technology is leading the charge. Emerging solutions like blockchain and the Internet of Things (IoT) are revolutionising package tracking and security. Blockchain creates an unbreakable chain of custody, ensuring transparency and accountability throughout the shipping journey.
IoT sensors, embedded in packages or attached to goods, can monitor conditions like temperature, humidity, and even shocks, alerting you to potential problems before they escalate.
Artificial intelligence (AI) in logistics and machine learning (ML) are also stepping up. These intelligent algorithms analyse vast amounts of data to identify patterns and predict potential losses. This allows you to take proactive measures like adjusting routes or prioritising delivery times.
Fine-Tune Your Internal Processes
Technology is powerful, but it’s only one piece of the puzzle. Don’t overlook the importance of your internal processes. Regularly review and optimize your order fulfilment and shipping workflows. Are there bottlenecks or inefficiencies that could lead to errors? Are your staff trained in proper packaging and labelling techniques?
By combining cutting-edge technology with streamlined processes, you’re not just reacting to lost shipments but proactively building a resilient system that minimises risk and maximises efficiency.
Conclusion
The path to minimising lost shipments and maximising customer satisfaction is evident. By implementing these proactive prevention strategies into eCommerce businesses and partnering with innovative logistics providers like NimbusPost, you can transform your supply chain so that every package arrives safely and on time.
Take the reins, implement these strategies, and watch your customer loyalty soar. Partner with NimbusPost and unlock the opportunities of a tech-enabled logistics solution designed to empower your business and delight your customers.
