NDR Triage Framework: Prioritising Failed Deliveries and Reducing RTO 

In logistics operations of an e-commerce business, a failed delivery does not necessarily mean that a particular order is lost. A customer may be unavailable, there could be an incomplete address or a delivery might be attempted at an inconvenient time. As a result, businesses receive Non-Delivery Reports (NDRs) and should act promptly to avoid shipments being returned to the warehouse. 

At the same time, processing each failed delivery in the same manner might lead to increased expenses and higher RTO rate. Businesses need a process to determine which orders can be recovered and which require a different approach. 

The concept of an NDR triage framework is very useful in such situations. It provides businesses with a way to prioritise orders based on their chances of successful delivery. 

In our blog post, you will learn more about NDR management, identifying salvageable orders, and how AI-powered automation can help you recover these orders and reduce RTO rates in e-commerce. 

What Are Non-Delivery Reports (NDRs)? 

A Non-Delivery Report (NDR) is generated when a delivery partner fails to deliver a package during a delivery attempt. The reason behind the failure is recorded in the NDR, and this information helps decide on further actions to be taken by the seller or logistics team. 

As an illustration, in case a delivery executive reaches customer’s address and fails to find anyone to receive the package, an NDR is issued. 

The seller or logistics team can contact the customer and ask them to be available to receive the package at a more convenient time. 

NDR management helps ensure that such cases are addressed promptly, giving businesses an opportunity to resolve delivery issues before the shipment enters the RTO process. 

Some of the causes that lead to failed deliveries 

There may be several reasons why a delivery attempt fails. The main causes are: 

• Unavailable customer: The recipient is not available at the delivery location. 

• Inaccurate address: The address which you provided is incomplete or difficult to find. 

• Unwilling customer: The customer rejects to accept the parcel. 

• Inappropriate contact information: The delivery executive is unable to contact the customer because the phone number is incorrect or unreachable. 

• COD issue: The concerned person does not have the necessary amount of cash. 

• Inappropriate time: The package is scheduled for or arrives at a time when the customer is unavailable. 

• Not permitted to enter the area: The delivery person is not permitted to enter the building. 

Determining the right cause will help you manage failed deliveries effectively. 

Difference between NDR, Delivery exception, and RTO 

While all three terms are related, there exists some differences between the three. 

Term	Meaning
NDR	A report generated when a delivery attempt is unsuccessful.
Delivery exception	Any unexpected event that interrupts or delays the normal delivery process.
RTO	A shipment that is returned to its original seller or pickup location.

The NDR could be viewed as a delivery exception; however, not all delivery exceptions lead to an NDR. Likewise, the NDR doesn’t automatically imply that an order is going to be an RTO. Timely action may still help recover the order and complete the delivery. 

What Is the NDR Triage Approach? 

NDR triage approach is a process of categorising, analysing and prioritising failed deliveries based on the reason for failure, the possibility of resolving the issue and the urgency of action required. 

Rather than processing all the NDRs in the chronological order of their arrival, businesses evaluate various aspects of NDRs, such as reasons for failure, value of the order, payment type and courier performance. 

The purpose is clear – to focus time and resources on recoverable orders, take timely action and reduce avoidable RTOs. 

NDR Triage Process and the Identification of Recoverable Orders 

The NDR triage process helps logistics teams identify and separate orders that have a higher chance of successful delivery from those that may be difficult to recover. 

For example, take into account two non-delivered orders: 

• Order A: Prepaid order where the customer is not available and wants to receive the package the next day. 

• Order B: COD order, where the customer rejects the parcel and does not get back after follow-ups. 

Order A is better for recovery, since the customer has shown interest in the package. This order must be prioritised. 

Order B needs additional checks before arranging delivery again. 

This process will make NDR order recovery more efficient. 

Main Determining Factors for Reattempting Failed Orders 

There are a number of criteria that could be considered when prioritizing NDR cases: 

• Reason for failure: The temporary problems will be easier to solve compared to persistent refusal from the customers. 

• Order value: Higher-value orders may require greater attention to improve the chances of successful delivery and minimize potential losses. 

• Payment method: Prepaid and COD deliveries could have particular priorities. 

• Response from the customer: Customers, who respond to phone calls and messages, would be easier to coordinate with. 

• Delivery location: Locations with recurring delivery issues may require special attention 

• Courier performance: Cases where the failure was caused by courier-related issues may be salvageable through a delivery reattempt. 

Advantages of Prioritising NDR Cases 

The NDR cases triage framework will provide the following benefits for operations management: 

• Increase order recovery potential. 

• Reduce unnecessary attempts at delivery. 

• Lower RTO rate. 

• Increase productivity of customer support specialists. 

• Lower reverse logistics costs. 

• Improve visibility on delivery-related issues. 

Identifying Salvageable Orders in Logistics 

In order to identify salvageable orders, the business will have to go beyond the failed order status. It should determine the cause of the failure and find out if there is a chance to successfully deliver the order again. 

NDR Categorisation According to Reasons for Delivery Failure 

The first stage involves categorising NDRs based on the recorded reasons for failure. 

This includes cases where customer unavailability, wrong addresses and problems with phone connection can be sorted out through communication. Repeated refusal from the customer can mean low recovery chances. 

Categorisation will help businesses determine which resolution to pursue instead of sticking to a standard procedure for all deliveries. 

Consideration of Order Value and Method of Payment 

Value of the order and the method of payment can play a key role. 

A high-value prepaid order may need urgent action since the payment has already been made, but the product has yet to reach the customer. 

COD orders require extra verification since the customer is yet to pay for the order and the business needs to be sure about customer’s readiness to accept and pay for the order. 

Analyzing Client’s Receptivity and Intent to Get the Shipment 

Client’s behavior gives important cues about recovery chances. 

On the contrary, many missed calls, delivery refusals and failed attempts could also signify lower recovery chances. 

Assessment of the Delivery Network Partner and Deliveries Location Performance 

In some cases, there is no fault on the part of the customers but rather with the delivery network. 

In such a situation, organizations must consider the courier partners’ performance, previous attempts, and location-wise failures. Choosing an alternative courier partner, based on the performance records, could lead to better delivery results. 

How to Make a Good NDR Prioritization Model 

An effective prioritization model helps firms manage their resources according to recovery opportunities for each order. 

There are many ways how to build it; one of them involves dividing NDR cases into three groups. 

High-Priority NDRs: Orders Requiring Immediate Actions 

These are orders with high chances of successful recovery. 

These may include: 

• Prepaid orders when the customer is temporarily unavailable. 

• Valuable orders where customer interest is confirmed. 

• Orders for which customers can easily correct addresses. 

• Shipments where the courier partner has reported an unsuccessful attempt even when the customer is available. 

These kinds of orders must be followed up immediately to reschedule delivery. 

Medium Priority NDRs: Orders That Require Follow-Up 

The possibility of recovering medium priority NDRs is moderate but further confirmation is required. 

This includes: 

• COD orders where the customer’s availability and willingness to pay need to be confirmed. 

• When customers respond late to phone calls or messages. 

• Orders affected due to temporary location or accessibility problems. 

• Orders that require further verification of addresses. 

Follow-up actions can be taken within a predefined period of time before proceeding any further. 

Low Priority NDRs: Orders With Low Possibility Of Delivery 

These orders have lower chances of delivery. 

Examples of such kind include: 

• Customer rejections. 

• Customers who are constantly unreachable. 

• Orders with multiple unsuccessful delivery attempts. 

• Customers who reject the order altogether. 

Rather than making multiple delivery attempts, businesses need to verify the intentions of the customers and proceed accordingly. 

Establishing Recovery Timelines and Escalation Guidelines 

Each priority level needs to have a specific recovery timeline. 

For instance, urgent cases could be addressed right away, medium-priority cases could receive follow-up calls within several hours, and low-priority cases could be reviewed before deciding on the next step with the courier partner. 

These timelines need to be in line with policies of the courier partners and shipment return deadlines. 

Using AI and Automation in Managing NDRs 

With increased shipment volumes, e-commerce businesses are finding it hard to manage NDRs manually. Some stages of managing NDRs can be simplified by using AI and automation. 

Automated NDR Detection and Classification 

With automation, NDR updates could be captured directly from the systems of the courier partners.  

In accordance with set guidelines or through AI-based analysis, shipments could be classified based on the reasons for their failures. 

AI-Powered Customer Calling and Delivery Confirmation 

Systems with AI capabilities could reach customers automatically after a failed delivery. 

Such systems could inform customers about delivery problems, ask about their availability for another delivery attempt, and gather the required information. 

Automated Follow-Ups and Redelivery Scheduling 

The system can automate the follow-ups and send an SMS or WhatsApp notification in case of an NDR. 

Upon verifying the availability of the customers, the business can use the system for scheduling another delivery attempt if the courier partners have the capability to do so. 

This will decrease delays in communication and improve the efficiency of the process of resolving NDRs. 

Prediction of High-Risk Orders Through Predictive Analytics 

Artificial Intelligence-enabled analytics can predict orders that are at a higher risk of resulting in RTO using past delivery records, customer feedback, courier performance, and past delivery attempts. 

With these predictions, businesses can take preventive measures instead of facing repeated delivery failures. 

Decreasing Manual Efforts for Logistics Support Teams 

Automated NDR processes will reduce the efforts required from the support teams to constantly monitor the dashboards of the couriers, contact each customer separately and get updates on shipments. 

Key Metrics to Measure NDR Management Performance 

Tracking the right performance indicators helps businesses understand whether their NDR management strategies are delivering results. 

Metric	What It Measures
NDR Resolution Rate	Percentage of NDR cases successfully resolved through delivery or another defined outcome.
Delivery Reattempt Success Rate	Percentage of reattempted shipments successfully delivered.
NDR-to-RTO Conversion Rate	Percentage of NDR shipments that eventually become RTO.
Average NDR Resolution Time	Average time taken to resolve an NDR case.
Cost per Recovered Order	Total recovery-related expenses divided by successfully recovered orders.

Monitoring these metrics regularly helps businesses identify operational gaps, improve recovery efficiency, and measure progress towards reducing failed deliveries. 

Conclusion 

The handling of delivery failures is not only about scheduling another attempt at making a delivery. Companies have to be aware of the reasons behind the failure, determine the possibilities of their recovery and prioritize the cases depending on the customers’ intentions and other business criteria. 

Using an NDR triage system can provide companies with the necessary structure for handling delivery failures, helping them focus on orders that can actually be recovered and prevented from becoming RTOs, which can result in financial losses for the business. 

When used alongside automated AI solutions, proper customer notifications and courier performance tracking, this method can greatly increase the delivery success rate and minimize RTO in e-commerce. 

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