Case Log: Late Shipment Rate Suspension

Client Name: Arjun Mehta
Location: Bangalore, Karnataka

Case Overview:

Arjun Mehta, a Bangalore-based seller dealing in electronic accessories, faced suspension from Amazon due to exceeding the Late Shipment Rate (LSR) threshold of 4%. Frequent delays in fulfilling orders triggered customer dissatisfaction and account suspension, putting his business at risk.

Challenges Identified:

• Operational Delays: Supply chain issues caused frequent delays in order processing and dispatch.

• Logistics Provider Failures: Reliance on a single courier partner resulted in bottlenecks during peak periods.

• Communication Gap: Lack of proactive updates to buyers regarding shipment delays escalated dissatisfaction.

Steps Taken:

1. Root Cause Analysis:

• Audited the order processing timeline to identify delays in warehouse operations.

• Reviewed the performance of logistics providers to determine delivery inconsistencies.

2. Corrective Actions:

• Operational Optimization: Streamlined internal workflows to reduce order dispatch times.

• Multi-Carrier Strategy: Partnered with additional courier services to improve delivery timelines.

• Proactive Updates: Integrated automated notifications to inform buyers of potential delays.

3. Preventive Measures:

• Set buffer stock levels to prevent delays during peak sales periods.

• Implemented a real-time tracking system to monitor shipments more effectively.

• Enhanced training for the warehouse team to ensure faster packing and dispatch.

Plan of Action (POA):

The following POA was submitted to Amazon for reinstatement:

1. Acknowledgment: Arjun acknowledged the issue and outlined its root causes.

2. Corrective Measures: Provided a clear explanation of steps taken to resolve operational inefficiencies and improve logistics management.

3. Preventive Measures: Shared long-term strategies to ensure the LSR remains below the threshold.

4. Commitment: Reaffirmed dedication to meeting Amazon’s performance standards.

Outcome:

• Account Reinstated: Arjun’s account was reinstated within 5 days of submitting the POA.

• Improved Performance: Reduced LSR to 1.2% through operational improvements.

• Customer Satisfaction: Buyers appreciated proactive communication, resulting in fewer complaints.