What a last-mile agreement should cover on failed deliveries
Ensure your last-mile agreement covers failed deliveries clearly. Learn what to define, who pays, and how disputes get resolved to protect your business.
When a parcel doesn't arrive on schedule, or lands damaged on a customer's doorstep, your business absorbs the fallout. A solid last-mile agreement that spells out exactly what happens when things go wrong means you can resolve the issue quickly, fairly and without chasing lawyers. If you're outsourcing final deliveries to a courier, your contract should name what constitutes a failure, who pays for it, and how disputes get sorted.
A last-mile partner who handles failed deliveries transparently will give you the breathing room to focus on your core business rather than firefighting on WhatsApp. What separates a vendor you can trust from one that leaves you scrambling is whether they've committed their accountability to paper—and whether you've read it.
What "failed delivery" actually means in your agreement
A failed delivery isn't one thing. A parcel might not arrive within the agreed window, or it shows as delivered when the customer never received it, or it arrives torn open. Your contract needs to define each scenario your business cares about, because different failures need different remedies.
Start with the basics: what is the promised delivery window? Same-day, next-day, within three working days? If your partner misses that window without a valid reason (breakdowns, load-shedding, strike action), that's a failure. But the agreement should also cover what counts as a valid delay—sometimes there are circumstances beyond anyone's control.
Next, clarify what happens to lost parcels. If a package goes missing between handoff and the customer's door, who is liable? Does the courier replace the contents, refund the shipping cost, or only cover the courier fee? For damaged goods, the agreement should say whether the courier's limit is a fixed rand amount per parcel, or linked to the declared value you've stated upfront. Many couriers won't cover items worth more than a set threshold—you need to know that limit before you sign.
Also nail down proof of delivery. If your customer disputes receipt, how does the courier verify whether the parcel truly arrived? A photo, a signature, GPS coordinates, or only driver notes? Without this clarity, you'll be caught between an unhappy customer and a courier saying "our driver confirms delivery"—and nowhere to turn.
Recovery, timelines and how disputes get resolved
When a delivery fails, your agreement should set out a clear process with real deadlines. Often this looks like: customer reports a problem within a set window (say, 48 hours of expected delivery), your business flags it to the courier within another 48 hours, and the courier responds with an investigation within five to ten working days. If the courier can't locate the parcel, you should know exactly when a refund or replacement ships, and to whom.
The agreement should also name a contact and an escalation path. Don't accept a clause that says "contact our customer service line"—get specific names, direct email addresses, and a WhatsApp or phone number. When a high-value order fails, email alone won't cut it. A dedicated account manager or a named support team means you're not buried in a generic queue.
Finally, check what the agreement says about repeat failures. If the same courier station fails to deliver to your postcode more than once, does your contract let you pause or terminate? Or are you locked in? A good partner will accept some accountability here. They might offer to reroute parcels through a different depot, or reduce your rates if their performance drops below a threshold you've both agreed on.
The small print on failed deliveries is where courier contracts often hide. Read it closely. If a clause is vague—"courier not liable for delays due to operational reasons"—ask the partner to define "operational reasons" and get it in writing. A last-mile provider confident in their service won't dodge that question.
When you're ready to move forward, Strove makes it straightforward to find verified last-mile couriers who've clearly stated their terms and can handle your specific delivery challenges.
Common questions
- What should happen if a parcel is marked delivered but my customer never received it?
- Your agreement must define how the courier verifies delivery—whether by photo, signature, GPS, or driver notes. It should also specify who's liable (usually the courier) and what recovery looks like: a replacement parcel, a refund, or credit toward future shipments. Without this in writing, you're left arguing with no backup.
- Is there a time limit for reporting a failed delivery?
- Most couriers ask customers to report within 48 hours of the expected delivery date. Your agreement should lock in this window and state how quickly the courier then investigates—usually five to ten working days. Longer delays make recovery harder, so push for tight timelines if possible.
- What if the courier damages a parcel in transit?
- The agreement should state whether the courier's liability is a fixed amount per parcel, linked to declared value, or subject to a maximum threshold. Many couriers have caps (check whether high-value items are excluded). Declare the value of each parcel upfront so there's no argument later.
- Can we terminate the contract if failures keep happening?
- A strong agreement lets you pause or exit if performance drops below an agreed threshold. Ask your partner upfront what their acceptable failure rate is and whether repeat failures at your address trigger a review or right to switch to a different depot.
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