NDRs or non-delivery reports are regular concerns for e-commerce logistics companies. Despite genuine efforts to deliver on the promised delivery date, some orders will get delayed, stuck, or even become an RTO (return to origin).
While some supply chain snags will remain, most of these issues can be tackled with good NDR management. Not only can excellent management of NDRs transform e-commerce logistics for a business, but it can also manage customer expectations and lessen distress during such an event.
What is NDR Management?
NDR Management refers to the chain of action when an order gets delayed, stuck in a location, or undelivered. It begins as soon as an e-commerce company notices an issue with order fulfillment.
Traditionally, non-delivery reports were not proactively handled because they were shared by couriers at the end of the day. It resulted in NDRs turning into RTOs due to slower resolution rates. However, with intelligent shipping software featuring NDR management protocols, this entire process can be automated to reduce losses and boost customer satisfaction.
Why Do E-commerce Businesses Need NDR Management?
Retailers need efficient NDR management because if left mismanaged, NDRs can result in high RTO rates, lost items, steep logistics costs, and severely unhappy customers.
All of these are red flags for a business because they hinder growth and chip away at profitability. Automated NDR management is a crucial feature for all e-commerce businesses, but it is more than that for midsize to enterprise-grade sellers. A brand that values its customers needs to maintain their goodwill by addressing non-deliveries through thick and thin.
What are the Most Common NDR Reasons in eCommerce?
Some of the most common reasons for non-delivery report management in eCommerce and tips to reduce RTO are well written in below article.
1) Customer unavailability
The customer does not respond to repeated calls or messages from the delivery agents. For example, the expecting individual’s phone is out of network areas or they are out of station.
2) Incorrect address or contact information
The address or contact number provided by the customer at the time of shopping is incorrect.
3) Rejected order
In this case, the customer has changed their mind and does not accept the order. The likelihood of this increases with cash-on-delivery (COD) orders.
4) Rescheduled Delivery
The order is delayed because the customer requests to reschedule delivery due to unavailability. This scenario mostly occurs when the customer is not at their respective location to receive the order.
5) Unserviceable location
The destination pincode is not serviceable by the courier company and the order becomes an RTO. This happens when the delivery destination is in remote or unreachable areas. For example, supply chain professionals delivering to certain Australian regions are receptive to frequent NDRs.
6) Fake Delivery Attempts
In fake deliveries, courier agents mark an order as an NDR without actually trying to deliver it. Package scams involve fraudsters demanding money through notifications and messages.
How Does Modern Shipping Software Automate NDR Management?
Modern shipping software with NDR management features uses AI and ML to track shipment status in real time and notify businesses of delays or stuck shipments immediately. The causes behind non-delivered parcels are specified to the logistics partner so they can take note and ensure these are not repeated.
Failed delivery information is quickly communicated to businesses, who can then trigger issue-specific notifications to customers to ascertain the reason. These alerts can be sent through WhatsApp, SMS, IVRS, and email. Based on customer responses, courier companies are notified to reattempt delivery.
3 Ways in Which NDR Management Can Transform E-commerce Logistics
Below, we’ll discuss in brief three main ways in which NDR management transforms eCommerce business processes.
1) Lower WISMO Calls and Customer Escalations
Efficient NDR management means businesses can stay on top of where their orders are and keep shoppers in the loop. What customers hate, even more than delayed deliveries, is not having any clue about where their order is and when they will receive it. This results in many ‘Where Is My Order’ calls and support tickets.
Automated NDR management allows brands to constantly keep their customers informed about the status of their orders and manage anxiety or dissatisfaction swiftly with updated information. Another way to resolve these inquiries is by providing a self-service portal where customers can seek answers to questions about their orders in transit.
2) Improved Delivery Operations and Reduced RTOs
The problem with NDRs is that if not tackled quickly, they have a very high chance of becoming a return-to-origin (RTO). These lead to significant losses in product cost, shipping and handling, storage, and restocking.
With proper NDR management, NDRs can be resolved quickly and potentially be saved from turning into an RTO. For example, NDR management can turn an RTO into a fulfilled delivery by constantly reaching out to customers and notifying courier companies in India.
3) An Excellent Post-Purchase Customer Experience
A customer’s positive brand experience relies heavily on their after-sales experience. How they are treated in this phase is a deciding factor in whether they will shop with you again. Delays and miscommunications are common in online shopping, but shoppers can most often get past them if they are kept informed.
With a good NDR management system, brands ensure customers know how valuable they are to them. With repeated messages and assurances of the fastest attempts for delivery, customers never feel out of the picture and that’s crucial for customer satisfaction. The decrease in NDR cases can lead to an increase in customer retention rates as well.
Conclusion
Often, the number of undelivered orders pile up and start hitting the bottom line even before we know it. This is why NDR management software is essential. It streamlines delivery operations, quickly resolves delivery exceptions, and keeps customers happy.
It results in properly communicated deliveries, lower customer churn rates, and significantly lower RTOs% in eCommerce industry. Most importantly, logistics companies can implement future trends to contribute to NDR management.
They can fast-forward reattempts by optimizing alternative routes with the help of drones and AI supervision. We hope this article will answer some of your questions about NDRs and why an NDR management system is crucial for success.