Exception Management
Also known as: Delivery Exception Handling, Shipment Exception, Problem Resolution
Definition
Exception management is the systematic process of identifying shipments that deviate from normal delivery—delays, damages, address issues, or failed attempts—and resolving them quickly to minimize customer impact and operational disruption.
What Are Shipping Exceptions?
Common Exception Types
| Exception | Description |
|---|---|
| Delay | Behind schedule |
| Address issue | Invalid/incomplete address |
| Damage | Package damaged in transit |
| Failed attempt | No one to receive |
| Lost | Cannot locate package |
| Customs hold | International clearance issue |
| Weather | Delay due to conditions |
Exception Severity Levels
Low: Minor delay (1 day)
Medium: Address correction needed
High: Multiple failed attempts
Critical: Lost or significantly damaged
Exception Management Process
Basic Workflow
- Detection - Exception identified
- Classification - Categorize issue type
- Notification - Alert stakeholders
- Resolution - Take corrective action
- Closure - Confirm resolved
- Analysis - Learn from issues
Automated vs. Manual
| Approach | Best For |
|---|---|
| Automated | High volume, simple exceptions |
| Manual | Complex issues, customer escalation |
| Hybrid | Most businesses |
Exception Detection
How Exceptions Are Found
- Carrier tracking updates
- Proactive monitoring systems
- Customer complaints
- Delivery scan data
- Automated alerts
Tracking Status Triggers
Normal: "In transit" → "Out for delivery" → "Delivered"
Exception triggers:
- "Delay" scan
- No scan for 24+ hours
- "Exception" status
- "Undeliverable" status
Exception Types in Detail
Delivery Attempt Failed
Causes:
- No one home
- Business closed
- Access issues
- Safety concerns
Resolution:
- Reschedule delivery
- Redirect to pickup point
- Contact recipient
Address Issues
Causes:
- Incomplete address
- Invalid ZIP code
- Business moved
- Person unknown
Resolution:
- Verify correct address
- Provide missing info
- Redirect shipment
Damage
Causes:
- Poor packaging
- Rough handling
- Accidents
- Weather exposure
Resolution:
- File carrier claim
- Reship if needed
- Investigate root cause
Delay
Causes:
- Weather events
- Volume surge
- Operational issues
- Customs clearance
Resolution:
- Proactive communication
- Expedite if possible
- Set expectations
Exception Management Tools
Shipping Software Features
- Exception dashboards
- Automated alerts
- Resolution workflows
- Customer communication
- Analytics/reporting
Key Metrics to Track
| Metric | Description |
|---|---|
| Exception rate | % of shipments with issues |
| Resolution time | Hours to resolve |
| First contact resolution | Resolved on first attempt |
| Customer impact | Complaints, refunds |
| Root cause | Pattern identification |
Proactive Exception Management
Before Exceptions Occur
- Validate addresses at order
- Use quality packaging
- Choose reliable carriers
- Set accurate expectations
- Monitor weather/events
Early Detection
Proactive monitoring:
- Shipment should arrive by Friday
- It's Thursday, no "out for delivery" scan
- Alert: Potential delay
Action: Contact carrier, notify customer
Customer Communication
Best Practices
| Timing | Communication |
|---|---|
| Exception detected | “We’re aware of a delay” |
| During resolution | “We’re working on it” |
| Resolved | “Here’s what happened/next” |
Communication Templates
Delay notification:
"Your order may arrive 1-2 days later than
expected due to [weather/carrier volume].
We apologize for the inconvenience and
will update you when it ships."
Resolution:
"Good news! Your package is back on track
and scheduled for delivery tomorrow."
Resolution Strategies
By Exception Type
| Exception | Resolution Options |
|---|---|
| Failed attempt | Reschedule, redirect, hold |
| Address issue | Correct, redirect, return |
| Damage | Claim, reship, refund |
| Lost | Claim, reship, refund |
| Delay | Communicate, expedite |
Escalation Path
Level 1: Automated resolution
Level 2: Customer service team
Level 3: Carrier escalation
Level 4: Management review
Exception Analytics
What to Analyze
- Exception patterns (time, carrier, route)
- Resolution effectiveness
- Customer satisfaction impact
- Cost of exceptions
- Preventable vs. unpreventable
Improvement Actions
Finding: 15% of exceptions are address issues
Action: Implement address validation at checkout
Result: Address exceptions drop to 5%
Building Exception Management
Getting Started
- Define exception categories
- Set up monitoring/alerts
- Create resolution workflows
- Train customer service
- Establish carrier contacts
- Build reporting
- Continuously improve
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