What is a shipment exception?
A shipment exception in transportation is a circumstance in which the pick-up or delivery of a freight shipment is delayed or disrupted. These unexpected delays interrupt the normal shipping process and can occur for any number of reasons.
Sometimes referred to as a "delivery exception" or "shipping exception," this transportation and logistics challenge can occur during any delivery, on any mode or in any industry. Shippers, carriers and third-party logistics providers (3PLs) leverage technology—including predictive delivery, control tower visibility and exception management tools—to both prevent and navigate such delays.
A freight shipping exception might occur because of:
Traffic delays
Weather issues
Mechanical issues
Customs delays
Miscommunications
What to do when a shipment is delayed or disrupted
When a freight shipment is expected to arrive later than planned, stakeholders need to be informed. The shipper, carrier, 3PL and delivery recipient all need timely updates. Where necessary, customer service representatives contact the customer directly to confirm revised delivery timing.
For companies using the right transportation management system (TMS), automated notifications can be sent to all parties—often via email or text.
Along with providing updates, multi-stop shipments may need to reroute or reschedule subsequent deliveries. Artificial intelligence (AI)-driven technology can automate these tasks to keep the supply chain as efficient and on-time as possible.
Companies may incur costs due to late deliveries or from expediting a shipment to ensure it arrives within the expected delivery window.
How long does a shipment exception last?
The duration of a freight shipment exception varies widely based on the nature and severity of the disruption. The effort required to resolve the issue and the efficiency of exception management processes both affect time to resolution.
Some exceptions are resolved in under an hour. Others create roadblocks that take multiple resources and significant coordination to address.
Timely, coordinated efforts to identify the underlying issue and execute a solution are critical for minimizing impact and resolving the exception as quickly as possible.
Is a shipment exception bad?
Delays and disruptions are inevitable in the supply chain. The measures taken to address the problem, resolve the exception and fulfill the delivery are key to reducing the length of the delay and keeping customers satisfied. When delivery exceptions occur frequently, it's important to investigate the root cause and determine how to prevent recurrence.
How to prevent future shipment exceptions
Not every delay or disruption can be avoided. Following these best practices helps organizations stay ahead of preventable shipping exceptions:
Source high-quality, proven carriers
Stay current with tracking and visibility tools
Receive regular shipping updates to ensure on-time delivery
Communicate proactively when there is potential for a delay
Spot trouble before it ships
How technology supports shipment exception management
Managing shipment exceptions requires an effective supply chain control tower approach that provides the visibility needed to take a proactive stance on freight moves. End-to-end visibility through a supply chain control tower is at the heart of any effective mitigation strategy.
A TMS with control tower capabilities takes shipment tracking, predictive delivery, proactive exception management and shipment rerouting to the next level. Rather than relying on occasional arrival, departure and current location pings, technology visualizes that data to help businesses identify exceptions faster and provides predictive shipment estimated time of arrivals (ETAs).
Control tower capabilities that help businesses manage exceptions:
Preconfigured controls with custom modules and reports
Enhanced pick-up and delivery scheduling management
Next event estimates to keep stakeholders informed and on track
Advanced notice of possible disruptions and obstacles
Greater supply chain visibility to improve communication across the chain