Apart from the issues mentioned above, recipients may sometimes be dissatisfied with the current state of the ‘last-mile’ service delivery. On average, parcel services are given a Net Promoter Score (NPS) of -9. The main causes for this are high prices, unavailability of same-day delivery, delivery errors, and late deliveries.
In addition, recipients often do not have insight into the status of the shipment. The status changes shown are limited and sometimes do not match the current situation. This results in frustration and unnecessary burdening of the customer service. And in some cases, customer services also lack the right means to share the current shipment status information.
Oh no… No one is home
The biggest challenge for home delivery is that frequently nobody is at home to receive the shipment. For a significant percentage of shipments the first delivery attempt is unsuccessful. The shipments then need to be temporarily stored elsewhere, because of lack of storage space. The challenge is how to deliver the ordered products to the recipient at the first attempt in a cost efficient way. Many recipients prefer shipments to be delivered to their home address, but the problem is that to an increasing extent, there are no fixed times when recipients will be at home.
The overview below shows the challenges and related consequences, divided into three categories: i.e. challenges related to costs, service, and the process.