IMPACT ANALYSIS Delivery and reception discrepancies A wrong delivery address, delays, mistaken pallet labels, the unfamiliarity with a particular environmental zone: these are all examples of delivery discrepancies which can occur in the logistics chain. To understand the nature and extent of these inefficiencies in the delivery Respondent populations: process, the business organisations EVO, Transport en Logistiek Nederland, and Beurtvaartadres have jointly launched the initiative for TNO to investigate whether these delivery discrepancies occur, as well as to identify the causes, the resulting inefficiencies and possible solutions. Carriers (52%) Shippers (39%) Definition of delivery discrepancy A delivery discrepancy is any problem in the delivery of a shipment to the consignee leading to delays, additional work or even a failure to deliver a shipment. Recipients (9%) 94% 6% of respondents said that delivery discrepancies were not a problem. of respondents had experienced discrepancies during the delivery of a shipment. 80% said that they considered discrepancies to a (big) problem. Factors influencing the nature and extent of delivery discrepancies • Value of the goods • Fixed contracts • Correct delivery addresses • Size of the consignment Inefficiency in the delivery process is to some extent ‘managed away’ by introducing slack into the schedules and by direct communication with recipients. € € € 5% of first attempts result in a ‘non-delivery’. 11% efficiency increase can be achieved in delivery times (last mile and drop time). + 400% That is the cost of a second delivery attempt in comparison to the first attempt. The delivery time (last mile and drop time) in relation to the shipment process is the key factor in the occurrence of delivery discrepancies. For local-level distribution, this is a bigger problem than for full international truckloads. BA 5 B main causes of delays in the delivery process 0 10 20 30 40 50 63% Carrier had the wrong or incomplete delivery address 52% Recipient did not know of the arrival of the goods 51% Carrier had no contact details, or the wrong contact details, for the delivery address 39% Carrier was unaware of delivery time windows 27% Inadequate or absent delivery facilities* 60 *For example lift truck. The 4 causes mentioned most often relate to incorrect or incomplete information (information asymmetry) CONCLUSION Delivery discrepancies are a dynamic issue. Some businesses have been able to manage the problem away; others have accepted its impact. There is certainly room for improvement, however. Increasing efficiency starts with addressing information asymmetry and better involvement of the recipient. Better communication in the chain, including the use of ICT solutions, can make a significant contribution. EVO, Transport en Logistiek Nederland, and Beurtvaartadres are working together on solutions using synergies with the Neutral Logistics Information Platform (NLIP), allowing information to be supplied and shared in an intelligent manner throughout the chain. The standardised electronic consignment note and standardised methods for notifying the recipient of shipments are also being given priority as a result of this research. Download the white paper at beurtvaartadres.nl/whitepapertno
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