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Prevent Delivery Failure with Optimized Routing

by | Mar 20, 2025

business owner hiding her face in her hands while managing failed delivery challenges

When a failed delivery attempt happens, your company’s got a huge problem. 90% of consumers are likely to abandon their cart due to high shipping costs. And they’re not happy when their items don’t arrive on time. 

Delivery failure means the connection between a business and its customer has been broken. With so much shopping and ordering happening online, a failed delivery can infuriate your customers.

In this article, we’ll explore the common causes of delivery failure. We’ll also give you practical strategies for your company to minimize these failures. Finally, we’ll take a look at how technology, improved communication, and better planning can help you prevent delivery failure.

Key Takeaways

  1. Incomplete or incorrect address information is still the leading cause of every failed delivery attempt.
  2. Real-time alerts, flexible delivery options, and live GPS tracking are all important parts of reducing missed deliveries.
  3. Smart route optimization, predictive analytics, and automated updates will help you prevent delivery failures, reduce operational costs, and offer a seamless experience that builds long-term trust with customers.

What Does a Failed Delivery Mean?

In logistics and e-commerce, “delivery failed” means that a package or service couldn’t be handed over to the intended recipient on the first attempt. This happens for a number of reasons. But the end result is always the same: a disappointed customer and extra work for your business.

When your deliverability goes bad, your customers get frustrated. They don’t want to deal with delays and changes to their plans. They also don’t want to face the uncertainty of not knowing when their order will show up. It makes them lose trust in your company. They might even leave bad reviews.

For delivery businesses, failed deliveries mean higher costs, logistical headaches, and potential damage to your reputation.

Prevent Delivery Failure: What’s Causing It

You’ll want to understand why deliveries fail, so you can prevent them. Some of the most common reasons for delivery failure include:

  • Incorrect or incomplete address information
    This is your classic problem. You might find a missing apartment number, a typo in the street name, or an invalid address. These can all lead to a failed delivery. 

Inconsistencies between customer-entered data and standardized address formats often make this issue even worse. Also, when you have to rely on outdated databases or you have old address verification tools, you may end up with more errors.

  • Recipient unavailable at the time of delivery
    Your clients’ lives are busy. Customers are often away from home or the office when their delivery arrives. This can result in missed deliveries. So the package has to be returned or redelivered later.
  • Restricted access
    Deliveries to places like gated communities or offices with security can be tricky. Drivers can end up being delayed. Sometimes, they’re even unable to deliver a package if they don’t have the right access codes.
  • Traffic delays and weather conditions
    Backed up traffic and sudden weather events often lead to delivery delays and failures. Heavy traffic, accidents, or severe weather like storms or heavy snow can significantly impact delivery schedules.
  • Poor route planning or last-mile delivery inefficiencies
    Inefficient routes can cost your time and your fuel. If drivers aren’t taking the most direct or efficient paths, they might delay or miss deliveries. Without optimized routing software and real-time traffic data, you may end up with suboptimal routes.
  • Failed communication between courier and customer
    If you don’t send your customer a notification about their delivery, it’s more likely to fail. Ineffective communication channels and missing real-time updates can lead to delivery issues and uninformed customers.

The Hidden Costs of Unsuccessful Delivery Attempts

A man holding a failed delivery package

Failed deliveries come with a price tag that goes beyond the obvious:

  • Additional fuel and labor costs
    Failed deliveries can be surprisingly expensive for businesses. When a delivery fails, the company has to pay for extra fuel and driver time to try again. This eats into profits and also puts more wear and tear on the delivery vehicles. This leads to higher maintenance costs. All these extra costs make the delivery operation less efficient and less profitable.
  • Impact on customer satisfaction and business reputation
    Customers who have to deal with delivery failures are less likely to be repeat customers. They’ll likely share their negative experiences with others, which amplifies the damage. This lack of trust can lose you brand loyalty and make you feel like your company is unreliable.
  • Increased returns and inventory management issues
    Failed deliveries often lead to more returns. This means extra work and costs for inventory management. Items need to be processed and put back into stock. This can mess up inventory records and increase your need for storage space. It makes things more complicated for the business.

How Businesses Can Reduce Failed Delivery Attempts

Take the right steps to prevent delivery challenges  and you’re likely to keep your customers happy. It’s also likely to help you manage your expenses. To reduce your failed deliveries, make sure you:

Ensure Accurate Addresses

Use tools that automatically verify the delivery location. They’ll catch errors and make sure that deliveries make it to the correct location. This can be as simple as using a good address database or even integrating location services. These will pinpoint exactly where a package needs to go.

Offer Flexible Delivery Options

Customers are busy. Offering flexible delivery options helps them get their packages when and where it’s convenient for them. This means offering a range of delivery times, including evenings and weekends, to fit different schedules. It also means making it easy for customers to change their delivery time if needed. So they use online tools or apps to manage their deliveries.

Use AI-Powered Route Optimization

To get your packages delivered quickly and efficiently, you can use AI technology to plan the best routes for your drivers. Opt for software that considers traffic, weather, and other factors to find the fastest way to get those deliveries done. You can even use historical delivery data to learn and improve your routes over time, making your operation even smoother.

Send Delivery Notifications & Real-Time Alerts

Your customers want to know what’s happening with their deliveries. Keep them informed by sending regular updates and notifications about the delivery status. You can do this via text messages, emails, or app notifications. Providing estimated delivery times and real-time tracking information helps them plan their day. You’ll also reduce their anxiety about when their package will arrive.

Enable Live GPS Tracking for Customers

Let your customers track their deliveries in real-time. That way, they’ll know exactly when to expect them. Integrate with mapping services to provide an interactive tracking experience. It’ll show the driver’s location and estimated arrival time. You can also offer customizable notifications, so your customers can get alerts when the driver is approaching their location.

Train Drivers & Dispatchers on Last-Mile Best Practices

Make sure your drivers and dispatchers know the best ways to deliver packages efficiently. They’ll also know how to handle any problems that come up. Regular training can help them learn how to deal with tricky delivery situations. This includes gated communities or apartment buildings. Give drivers the tools they need, like mobile devices with helpful software. That way, they can communicate effectively and solve problems quickly.

How AI & Automation Help Prevent Delivery Failures

Logistics manager using laptop analyzing cargo delivery using innovative software

Using technology to prevent delivery problems is a must for any company that wants to have a smooth and efficient delivery operation. Here are some of the ways that AI automation can help:

AI-Powered Route Optimization

AI route planning software can analyze tons of information to find the best delivery routes. It considers things like traffic and weather. It even helps when the customer is ready to receive the package. These systems can quickly change the route if there’s an accident or road closure. So you can make sure drivers always take the best path. AI can also learn from past deliveries, so future routes are even better.

Predictive Analytics

AI technology can predict things like traffic jams and bad weather. So you can plan better delivery routes and avoid delays. It can even predict how many deliveries you’ll have in a given day. That way, you can make sure you have enough drivers and resources to handle everything.

Automated Notifications and Real-time Updates

With AI software, you can set up automatic messages. These can help you keep your customers updated on their deliveries. Your messages can include things like estimated arrival times and any potential delays. This helps you prevent missed deliveries and keeps your customers satisfied. You can even personalize your messages to provide a better customer experience.

Best Practices for Handling Unsuccessful Delivery Attempts

Even with the best planning, delivery failures happen. Here are some of the best practices for handling unsuccessful delivery attempts:

Manage Re-Delivery Effectively

If you failed to deliver, make sure you’ve got a clear plan for trying again. This means making it easy for customers to schedule a new delivery time that works for them. It also means getting the package redelivered quickly. Using tools that automate the rescheduling process can help avoid delays and make sure things run smoothly.

Communicate Clearly

When a delivery fails, reach out to the customer right away to apologize and explain what happens next. Let them know why the delivery failed and what their options are. It’s helpful to offer different ways for them to contact you, like phone, email, or online chat. That way, they can easily get in touch and receive updates.

Handle Refunds and Returns

Have clear rules about when to offer refunds, reschedule deliveries, or return packages to the sender. This helps you make sure that all your customers are treated fairly. Make sure your customer service team knows these rules and can explain them clearly. Be flexible and understanding with customers. You’ll want to take extra special care if the package is damaged or has been delayed for a long time.

Proactively Reduce Delivery Failures

There’s no magic bullet to prevent delivery failure. It takes a combination of strategies working together. Focus on getting addresses right, offering flexible delivery choices and planning efficient routes. You’ll also want to engage in clear communication. Using technology like AI and automation can boost your efforts even more.

The best approach is to be proactive. Think ahead and try to solve problems before they happen. This will help you create a smoother, more reliable delivery experience that your customers will appreciate.

Prevent Delivery Failure with Cigo Tracker

Cigo Tracker is your partner in delivering success. We offer a complete set of solutions to help you reduce failed deliveries, work more efficiently, and keep your customers satisfied.

Here’s what Cigo Tracker can do for you:

  • Guarantee accurate deliveries
    Our advanced tools ensure that addresses are correct and complete, so your deliveries always reach the right place.
  • Give your customers more control
    Offer flexible delivery options and let customers track their packages in real-time, giving them a better delivery experience.
  • Make your deliveries smarter
    Our tools help you plan the best routes and avoid potential problems like traffic or bad weather.
  • Keep everyone informed
    Send automatic updates and notifications to your customers, keeping them in the loop and building trust.

Don’t let delivery problems slow you down. Take charge of your deliveries and reach your full potential with Cigo Tracker.

Grab your free trial and prevent delivery failure today.

FAQs

What is the most common reason for a failed delivery?

The top reason for failed deliveries is bad address information. This could be anything from typos and missing apartment numbers to old addresses. It’s really important to make sure you get the address right when the customer places their order. Another big reason for failed deliveries is that the customer isn’t there to receive the package.

How can businesses improve communication with customers about deliveries?

Businesses can use automated notifications via SMS, email, or app notifications to keep customers informed about delivery status. Real-time updates, including estimated arrival times and driver location, can further enhance communication. Providing multiple contact options, such as phone, email, or chat, ensures customers can easily reach out with questions or concerns.

What role does technology play in preventing delivery failures?

AI routing software helps drivers find the best routes, avoiding traffic and other delays to make deliveries faster. This software can even predict problems like traffic jams or bad weather, helping you stay ahead of potential issues. In addition, real-time tracking and automatic notifications keep customers informed and reduce the chance of missed deliveries.

What should a business do in case of a delivery failure?

If a delivery fails, the business should promptly communicate with the customer, apologize for the inconvenience, and provide clear information about the next steps. Offer flexible re-delivery options, and consider offering a refund or discount if appropriate. Train staff to handle failed deliveries efficiently and empathetically.

How does live GPS tracking help with deliveries?

Live GPS tracking allows customers to see the real-time location of their delivery driver. This increases transparency and reduces the likelihood of missed deliveries, as customers can plan their schedules accordingly. It also allows for increased communication between the customer and the delivery driver, allowing for last-minute changes.

Mark Mulhearne

Mark is an Enterprise Account Executive at Cigo, specializing in driving customer success and building strong client and partner relationships. With a focus on continuous improvement, he enhances product efficiency to meet client needs effectively. Since moving to Canada in 2015, Mark has embraced the country’s cultural diversity, living in Vancouver before settling in Toronto. Outside work, he enjoys art and travel, passions that enrich his perspective and fuel his curiosity. Mark’s proactive problem-solving and dedication make him a valuable asset to Cigo, embodying the company’s commitment to excellence and client satisfaction.

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