Delivery Services – FedEx and UPS Service Failures
In the industry of shipping there is a “Service Failure” Rate of 3-5%. A failure is a delivery that arrives to the recipient but does not arrive within the Guaranteed Time chosen, i.e. 10:30 AM or 2:30 PM, etc. It can also be applied to UPS Ground if the shipper uses this mode.
Here is the problem. As the sender you must Track EVERY shipment that goes out to find the 3-5% that are “Service Failures.” For each failure discovered, you must then make a 4-7 minute phone call in order to receive credit. Most clients do not go through this process for long before giving it up as an inefficient use of staff time.
The solution is to allow a Service Bureau that specializes in this process to handle both functions. In other words let the bureau do the tracking and submissions for credits on the client’s account. Since they work exclusively on a contingent fee, there is no up front or any other cost on this area. They only share with the client on the credits that they help the client receive.