Shubham Sinha

← Experience

As Product Analyst

Late deliveries cost us about ₹7.56 lakh in seven months.

Data
Seven months of orders
Late means
Past the courier’s delivery-time benchmark
Output
A daily flag

What I counted

Two costs: shipping fees paid on late orders, about ₹5.85 lakh, and repeat purchases we lost afterwards, about ₹1.72 lakh. I used courier delivery-time benchmarks to decide what counts as late.

What the ₹7.56 lakh is made of
Shipping fees on late orders, ₹5.85 lakhLost repeat purchases, ₹1.72 lakh

Figures are rounded.

What I found

Customers with a late order were about 5 points less likely to buy a third time (p<0.01). The later the order, the bigger the drop.

Drop in third-order rate, in percentage points, by how late the order was
  • 1 to 2 days late3.7
  • 3 to 5 days late7.0
  • 6 or more days late8.1

One air courier was late 56.5% of the time. It was the main thing to fix.

Where the number stops

The ₹7.56 lakh covers seven months. A yearly figure would be an extrapolation.

The daily flag

A daily flag that shows delayed orders to the supply chain and warehouse teams.

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