Failed delivery cost
Monthly cost of failed first attempts from redelivery, customer contacts and returns, and the value of cutting the rate.
Get this tool with its role plan
This is a premium tool. It comes with its role's plan: sign in, then add the role in Billing.
Comes with the product manager plan: every tool for the role, from $10.20 a month at the launch price.
- Your own numbers, worked out as often as you like
- The full failure report you can print or save to My work
- 4 cited sources, linked, with the checks to make
- Every other tool for the same role, in the same plan
- A plain-words read of your result (a fuller AI read with the Bifrost AI add-on)
Included in these role plans
Example result · fictional numbers
What you get: failure report
Worked out by this tool from its default inputs. Its role plan lets you run your own numbers, print the sheet and save it.
54 failed attempts a day cost $22,183.20 a month with lost margin; reaching 3.0% saves $7,394.40 a month
- Failed attempts per day
- 54
- Cost per failed attempt
- $14.00
- Monthly cost
- $19,656
- Value of each 1-point cut in failure rate
- $4,368 per month
Cost of one failed attempt
- Reattempt
- $9.50
- Customer contact
- $2.70 (60% of failures at $4.50)
- Return to sender
- $1.80 (15% of failures at $12.00)
- Lost margin on returns
- $1.80 (15% at $12.00)
- Full cost per failure
- $15.80
- Monthly cost, as the tool counts it
- $19,656.00
and 2 more lines
Also on the sheet
- Failures by reason · 4 lines, starting with “Nobody home: 55%”
- Target plan · 6 lines, starting with “Failure rate now and target”
The plain-words read of this example
At 4.5%, 54 first attempts fail each day at $15.80 each with lost margin, $22,183.20 a month. The biggest reason is nobody home at 55% of failures. Reaching 3.0% would avoid 468 failures and save $7,394.40 a month, $4,894.40 more than the fix program costs. Studies show up to 20% of home deliveries fail first time, and routing that predicts who is home cut failures by 10%.
4 cited sources
- Do it right the first time: Vehicle routing with home delivery attempt predictors (Production and Operations Management, 2023) (IDEAS/RePEc)
- Publication 28, Section 2: Postal Addressing Standards (US Postal Service)
- CASS certification (USPS PostalPro)
- Delivery Truck Drivers and Driver/Sales Workers (Occupational Outlook Handbook) (US Bureau of Labor Statistics)
Plus 5 step-by-step checks, a print layout and a link that reopens it with your numbers.