What is NDR and how to reduce it?

NDR or Non-Delivery Report is a notification shared by courier logistics 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 or just as an update on their website. Basis the notification, logistics companies ask the courier sending company to provide the next action to be taken with such orders. If no action is provided by sending company to the logistics company then the logistics company may return the shipment back to the sending company., So, ideally, with reasonable time the sending company should contact the customer and check why the shipment didn’t get delivered and basis that inform the logistics company on next action steps to be carried out for the shipment.

The courier companies generally make 3-5 delivery reattempts before marking the order an RTO (return-to-origin).

How to reduce NDR?

For any online company, low RTO is very critical thing to achieve. And Reducing NDR is critical to ensure low RTO. Here as few things to do to reduce NDR.

• React immediately – Any delay in contacting customers after the first delivery attempt increases the chances of RTO. Ideally inform logistics company of the action to be taken of NDR shipmement in 12 – 24 hours
• Follow multi-channel approach to reach out to customers in cases of NDRs – Make manual and IVRS calls, send emails, messages, notifications etc, and get to contact customer and get customers view on why shipment wasnot / couldnot get delivered
• Incentivise call center teams to convert NDR or failed deliveries to successful deliveries
• Over a period of time you will be able to co-relate NDR data with courier performance vis-a-vis various pin codes/ zip codes. 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. If you are able to convert some orders to Prepaid because of Incentive, you can reduce NDR significantly.