Hermes issues delivery warning to retailers

UK courier firm Hermes has issued a stark warning to retailers, stating that failed deliveries could cost them their businesses. IMRG figures show that failed deliveries are costing the B2C industry more than £500m a year.

When spread across the 1.1bn UK deliveries in 2010, this equates to a cost of 24p to the retailer and 22p to the consumer for every parcel sent.

In response to the news, Jon Tobbell, commercial director of Hermes, explained that poor home delivery performance risks heaping added pressure on the bottom line and profitability, at a time when retailers are already facing reduced margins, higher inflation and lower consumer spending power.

Not only will failed deliveries contribute to increased supply chain costs, but also test consumer loyalty potentially resulting in a loss of sales, he added.

He went on to say that the key is in achieving first time deliveries through effective communication with the consumer and a flexible approach.

Hermes’ recent Parcel Deliveries Usage & Attitude Survey found that shoppers are increasingly looking for high levels of convenience from a home delivery service that comes when they are available and provides up to date information on order status.

Tobbell said: “Failed deliveries are costly to both the retail sector and the consumer and pose a considerable risk to the profitability of an organisation.

“We are committed to working closely with our customers to continually improving our first time delivery rates to avoid this unnecessary expense.

“Our 7,500 UK couriers have an average territory of just 12 sq miles, far below the industry average, so are able to provide a high-quality doorstep service that is local and adopts leading home delivery best practice.”