Running a successful business organization is all about leveraging operational efficiency. It is always the small steps and processes which if optimized, can lead to bigger results. One such activity that has helped businesses in the last few years is outsourcing courier and delivery services to experts.
It does not matter whether you are big or small; operating in the B2C or B2B niches or the volumes you are dealing with, outsourcing courier and delivery services is a world of difference.
Shipping and delivery costs have always been a major headache for most business organizations. They eat up into the revenues and end up reflecting on the balance sheets.
Many businesses are stuck up in the dilemma- should they put in place infrastructure for delivery, or should they outsource the same to an expert?
In this resource article, we speak to experts at a Minneapolis courier service. We are going to look at some of the benefits of outsourcing courier and delivery services to an external expert. However, before we get to the list of benefits, let us first look at what outsourcing courier and delivery services are all about.
Outsourcing Courier and Delivery Services: What you should know
With product delivery becoming a commonly accepted practice, the need for last-mile courier companies has been on the rise. Traditionally, businesses had to set up their own delivery setup and infrastructure. This meant the following-
- Investing and buying a fleet of vehicles
- Hiring drivers and executives for the process
- Working for routing and delivery processes
- Paying for licenses, certifications, and permits
- Additional problems like fines, crashes, and breakdown
In short, putting in place a businesses’ own delivery network was a problem that had the potential of bringing the entire business crashing down.
A better alternative that evolved and was followed by everyone from Target to Walmart was working with experienced delivery partners. This meant that the business was outsourcing the delivery part (pick up, transportation, and final handover to the customer) to an external third-party courier and delivery partner.
The courier or delivery company already had the infrastructure and personnel in place to execute the same right from the get-go. This was highly advantageous for businesses that could then concentrate on improving other areas of the business.
List of the Top 7 Benefits of Outsourcing Courier and Delivery Services
1) Saving Huge Costs on Delivery Fleet-Â
Commercial vehicles do not come cheap. Even if you are looking to buy used commercial vehicles, you will have to shell out a lot of money. Not to mention the service costs, parts and repair expenditures, and more. By working with a specialized courier and delivery service company, you can avoid all the fleet costs. This money can be invested in other areas. We are not talking about small costs, but one in the thousands of dollars.
2) Lesser Damage in Transportation and Handling-Â
Even if you are setting up your own team, you might have to train them to handle the specific nature of the goods. However, you can eliminate this problem if you work with experienced delivery professionals who are adept at handling goods and products of a complicated or sensitive nature. This means that damages and spoilages will be much less. A lot of delivery partners offer insurance on the goods and products to reduce risks.
3) Improved and faster Turnaround Times for Delivery-Â
One of the major focus areas of any business is to get the product delivered as soon as possible. This helps with everything from cash flows to improving the experience of the customer. If your delivery partner offers same-day delivery services, you can rest assured that this will help your business. Professionals realize the importance of fast delivery and ensure that the same is getting done for the business, which helps them increase volumes for orders.
4) Great Problem-Solving Abilities on Delivery Issues-Â
If you are a start-up that has just entered the business ecosystem, you might not be aware of all the delivery problems you can experience. In this regard, a seasoned courier and delivery company can help guide you in the right direction. Since they have already dealt with and addressed multiple problems in the past, they can overcome anything that comes up. In other words, this can be a great learning curve for young start-ups who are not aware as much.
5) Additional Support for Packaging and Warehousing-Â
Some of the best courier and delivery operators allow their clients access to additional services at no or little cost. This includes the all too important packaging and storing of goods. If your delivery partner has a warehouse in a strategic location, it will end up benefitting your business in a major way. This is why you need to go for the best delivery partners when outsourcing. Offering warehousing can be a major benefit to help scale up the business at a later time.
6) Opens up Free Time for Owners to concentrate on other areas-Â
If such a major and important aspect of your business is taken care of, you can focus on areas that need attention. We all know how delegation is a crucial function of promoting efficiency. Working with an experienced delivery partner can help you improve the product, look after the marketing, improve customer relationships, and more. You end up working with a delivery partner that eases your business operations and shares your vision for growth.
7) Builds Trust and Reliability for the Business in front of Customers-Â
The delivery is the final or the only physical touchpoint that your business has with its customers. If the delivery experience is not great, it might affect the branding and trust of the business in the eyes of the customer. If you are unsure that your own setup will help achieve this, a safer option would be to go with experts that realize and recognize the value of this aspect. At the end of the day, a business needs to work on its customer experiences.
The Final Takeaway
In this article, we have made a strong case for why businesses of all shapes, sizes, and scales should look to outsource their courier and delivery requirements. Not only can this help them achieve operational efficiency, but it can also enable them to boost their branding.
If you would like us to offer clarifications on any of the points mentioned in the article, please feel free to let us know in the comments below. We would be more than happy to address and clear as many of your doubts as possible.
Learn more:
Business Functions That Could Effectively Be Outsourced
Six Business Risks Every Enterprise Should Watch Out
