Exception Handling (Shipping)
Also known as: Shipment Exceptions, Exception Management, Delivery Exception Handling
Definition
Exception handling in shipping involves proactively identifying and resolving problems that occur during the fulfillment and delivery process. Effective exception handling minimizes customer impact and reduces the cost of shipping failures.
Types of Shipping Exceptions
| Exception | Description | Resolution |
|---|---|---|
| Address issue | Incomplete/incorrect address | Correct and reship |
| Delivery failure | No one available, access issue | Reschedule or redirect |
| Weather delay | Transit affected by weather | Monitor and communicate |
| Damage | Package damaged in transit | File claim, reship |
| Lost | Package cannot be located | File claim, reship |
| Customs hold | International clearance issue | Provide documentation |
| Refused | Recipient declined delivery | Return or redirect |
Exception Handling Process
- Detection - Identify exception via tracking/alerts
- Classification - Categorize by type and severity
- Investigation - Determine root cause
- Resolution - Take corrective action
- Communication - Notify customer proactively
- Documentation - Record for analysis
- Prevention - Address systemic issues
Proactive vs. Reactive Handling
Proactive
- Monitor all shipments in transit
- Set up automated alerts
- Intervene before customer notices
- Communicate delays before customer asks
Reactive
- Wait for customer complaint
- Higher customer dissatisfaction
- More difficult to resolve
- Damage already done to experience
Exception Management Technology
- Visibility platforms - Real-time tracking and alerts
- AI/ML prediction - Anticipate issues before they occur
- Automated workflows - Trigger actions based on events
- Customer communication - Automated notifications
- Analytics - Pattern identification
Measuring Exception Performance
- Exception rate (% of shipments with exceptions)
- Resolution time (hours to resolve)
- Customer contact rate (% contacting about issues)
- Reship rate
- Claim rate
Best Practices
- Set up real-time exception alerts
- Define resolution workflows by type
- Empower agents to resolve quickly
- Communicate proactively with customers
- Analyze patterns to prevent recurrence
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