Cash on Delivery Management – The Immovable Feature for Complete Customer Service
All the major courier and logistics companies across the world serving direct end-customers via e-commerce or retail home deliveries consider cash on delivery management as a key area in dire need of solutioning.
Cash on delivery, or collect on delivery, is a key business process has sustained its popularity despite multiple payment options gaining ground. A study business insider shows that cash on delivery still happens to hold the highest percentage of the total payment types in developing markets.
With the popularity of e-commerce and direct-to-home deliveries increasing rapidly, the package size and invoice amount go on decreasing. As most of the major marketplace providers such as Amazon, Walmart, Alibaba, Flipkart, etc. are leveraging volume to bring down overall logistics management costs. To infuse volume around festive and peak merchandise movement periods, these companies often bundle free-shipping for their priority customers. This incentivizes customers to avail smaller invoice items through the company’s portals or stores. In such scenarios, the affinity, availability, and viability of cash on delivery payments increases. By offering the customers such an option companies create satisfied and repeat customers.
However, if cash on delivery is so important, why do many companies still falter with its processes? The answer is simple, the aggregation of cash across the vast volume of shipments becomes a chronically taxing chore. Filling of the invoices with the shippers, transferring the cash, and to begin with, handling all the cash daily via the busy schedules of delivery associates is a challenge. Accountability over the cash-flow movement is critical but is still the most challenging area for such companies.
LogiNext offers the ideal and most able solution for this challenge, an intuitive algorithm backed process software which streamlines, automates, and optimizes cash on delivery management.
The Right Way to Manage Cash on Delivery
LogiNext offers multiple payment options for its clients to utilize for efficient delivery management. With our easy to use the mobile app for delivery associates, the entire delivery experience becomes simple and structured. The company can enable complete process visibility to track the shipment from the planning, assigning, and dispatching stages to the travel, route optimization, estimated time of arrival compliance, and package handover process. The company can record each stage of information gathering while the delivery associate exchanges the package or shipment with the receiver. Everything along the actual product capture can be tracked, recorded and optimized, including time of delivery, customer feedback, payment type, payment record, proof of delivery, and total service time.
The cash on delivery payment method is very efficient if the customer to transact in that manner.
As the delivery associates check-in for the delivery:
- They input the name of the receiver and any comment of feedback the receiver might have.
- They then select the payment type.
If the delivery is pre-paid, they can proceed further. If the delivery is collect on delivery, the delivery associate can choose whether the payment is by cash, card, or wallet. LogiNext offers seamless process execution of all three modes.
- They can then select the payment by cash option (assuming that is the relevant option).
- They would then collect the cash from the receiver and input the exact amount as received.
If the receiver pays more than the designated amount, the application intuitively indicates the exact amount that needs to be handed back to the receiver. This helps in keeping a thorough track of all the cash in hand (of the delivery associate).
They would then record the proof of delivery through the application (as a photo of the delivered product and an e-sign from the receiver).
On successful completion of all processes, the delivery associate can check-out from the order, mark it is as completed and the same would be immediately updated at the company’s dashboard which tracks the delivery associate at all times.
The cash on delivery management option aligns the company’s business deliverables and strategy with real-time service execution and compliance on the field. This ‘clarity’ and ‘visibility’ increases the probability of customer satisfaction.
The delivery associate can easily usually all their tasks and the cash in hand through their interactive dashboard.
Another key element of the cash on delivery management functionality is cash deposit integration. The delivery associate can now record all bank deposits right from the application. They can also take proof of deposit (in terms of a photo of the receipt). This streamlines the cash-flow in real-time.
Furthermore, the courier or logistics management company optimizing the deliveries can maintain a digital wallet with the manufacturing, carry forwarding agent, distributor, or retailer who initiated the shipments. This essentially means that the cash received from the shipment can be directly debited from the wallet by the shippers, hence eliminating long cash-settlement processes.
LogiNext believes in creating the best solutions encompassing the entire gamut of business use-cases. It’s not just about keeping pace with the technological developments in the space of optimized delivery management, but also about leading the responsibility for benchmarking the best practices in the industry.