what is ndr in ecommerce logistics?
NDR or Non-Delivery Report is a notification shared by courier companies specifying the orders which could not be delivered in a certain timeframe. When a delivery agent is unable to successfully deliver the order, which might happen for a variety of reasons like “incorrect address” or “customer unavailability”, the order is marked as an NDR.
The courier partner provides details of all such orders over APIs or in the form of an excel file. E-commerce logistics companies can then provide instructions on how to deliver the order to ensure a more informed delivery attempt, or ask courier partners to make blind reattempts. The courier companies generally make 3-5 delivery reattempts before marking the order an RTO (return-to-origin).
Identify failed delivery attempts (NDR) in real-time
ClickPost has deep API integrations with carriers enabling real-time identification and categorization of NDRs. Data is pushed from carriers to Clickpost and ClickPost engine auto-categorises them into 'Address Issue', 'Delivery rescheduled'.
Outcome: Immediate identification of failed deliveries with no manual intervention.
Seek response from customers to ensure delivery
TOP 5+ MOST COMMON REASONS FOR NDR IN ECOMMERCE
Incorrect or incomplete address
Customers may incorrectly input their address while placing the order or miss out on landmarks that make it difficult for the delivery agent to find the delivery address
Incorrect Phone number
Many delivery agents call the customers before delivery to check their availability. Without being able to contact the customer, the delivery agent may be unable to hand over the order.
Customer rejected delivery
Sometimes customers just change their minds about the order, specially when the order is delayed or if packaging seems damaged
Customer not available
There may be occasions when the customer is contactable but not able to take possession of the order, thereby impairing successful delivery. These are different from cases in which a customer reschedules the delivery.
NDR Fake Delivery Attempt
These are cases in which the delivery partner marks a delivery attempt in the system without actually making it. ClickPost has a unique feedback system to identify such cases
Customer rescheduled delivery
Some customers, upon receiving the call from the delivery agent, may notify the agent that they require the order to be delivered at a later date.
best ndr management system for
The best NDR Management software system in eCommerce should have the following 10 features:
- API integrations with courier partners to identify NDR issues in real-time
- A text analytics engine to automatically categorise NDR cases into specific buckets
- Complete Customer communication platform to seek a response from customers on NDR cases via multiple channels such as email, SMS, Whatsapp, IVRS, etc
- Intelligent workflows to drive maximum response from customers on NDR cases (eg. For all 'Address Issues', send an email and SMS to customer seeking their response -> If no response is received in 2 hours, send a Whatsapp message -> If no response is received in 8 hours, send Email, SMS and IVRS call, and so on
- NDR API integrations with courier partners to send NDR feedback in real-time
- Integrated backend to enable NDR calling team to manually call customers to resolve issues
- Rule-based allocation of NDR cases to different NDR calling representatives leading to their specialisation (eg. All 'Address Issues' and 'Customer refused delivery' issues are allocated to person X)
- Deep Integrations with calling tools, and other internal systems
- Fake delivery management system
- Complete analytics on the performance of NDR team, 'Reasons for NDR' and 'NDR cases by courier partner'
how to reduce rto due to ndr Management IN EcOMMERCE?
Once an NDR happens, you need to take action immediately and not leave it to the courier partner.
Here are 5 ways you can reduce RTO after a failed delivery:
Implement an NDR Management solution
React immediately - Any delay in contacting customers after the first delivery attempt increases the chances of RTO multifold
Follow multi-channel approach to reach out to customers in cases of NDRs - manual and IVRS calls, emails, messages, notifications etc.
Incentivise call center teams to convert NDR or failed deliveries to successful deliveries
Use NDR data to select better courier partners for future orders
Incentivise customers to convert cash-on-delivery orders to pre-paid orders before the out-for-delivery attempts
FAQs on NDR Management sYSTEM & soFTWARE IN EcOMMERCE
Q1. What is the full-form of NDR in courier or logistics?
A. NDR means Non Delivery Report shared by courier partner at the end of the day which contains details of shipments which could not be delivered.
Q2. What is the relation between NDR and RTO?
A. NDR Management is defined as a series of steps that you need to take after a failed delivery attempt to make sure that the shipment is delivered successfully. If no steps are taken, there is an overwhelming chance of the shipment getting marked as RTO or Return-to-Origin. Book a Demo to know about ClickPost NDR Management.
Q3. Which is the best NDR Management solution?
A. ClickPost is the market leader in NDR Management in India by a huge margin, with large e-commerce companies using its solution for their complete NDR management. ClickPost is the only company with features like AI-driven messaging, automated issue categorisation, deep API integrations with NDR systems of courier partners, and customer-specific workflows for managing NDRs (non-delivery-report).
Q4. How much RTO reduction is typically observed after implementing ClickPost?
A. While it depends on the category and customer profile of the e-commerce companies, typically most companies see their RTO getting reduced by one-fourth to half of its original value.
Q5. What if I don't make any delivery attempt on NDRs
A. When an NDR occurs, multiple delivery attempts are made by the carrier to convert it into a successful delivery. However, actively converting an NDR requires contributions from your end. Failing to act on NDR notifications will lead to blind reattempts from courier partners leading to Higher RTO% and Poor Customer experience.
Q6. How to set up an NDR call center?
A. You need to have a call center team dedicated to NDR management. This team needs to call customers who haven't responded to automated reachouts for resolving NDRs. The team can either be divided by courier partners (eg. Person A manages NDRs done by courier A), or by reason for NDR (eg. Person A manages NDRs which happened due to 'Incorrect Address'), or by a combination of multiple factors (which can be configured within ClickPost).
Q7. What is the 36-hour rule?
A. In the event of a failed delivery, if the next successful attempt is not made within 36 hours, the probability of RTO increases by 2X. Companies that do not have an NDR management tool usually fail to meet this deadline due to these typical timelines:-
Day 1: Failed delivery happens. Courier partner shares NDR by the end of the day
Day 2: Ecommerce company calls up end-customers to get delivery instructions
Day 3: [36 hour rule already broken] Courier partner reattempts delivery