Unlock 4 Benefits of Outsourcing Your Logistics to a Courier Delivery Service
It’s one of the deep existential questions faced by any business owner.
To outsource? Or not to outsource?
But when it comes to logistics, there are some clear benefits to outsourcing logistics to a courier delivery service.
Here we’ll outline what those benefits are so you can make the best decision for your company.
Lower Cost
This may be the biggest argument in favor of outsourcing logistics to a courier express service. It saves you money in a variety of ways.
One of the biggest savings is on payroll costs.
Managing express delivery logistics takes a lot of work and a lot of time. That’s time for which you have to compensate your employees when they could be engaged in more worthwhile tasks that relate more directly to your business needs.
You might even need to recruit people to keep on-staff solely for the purpose of making deliveries, which means adding more employees to the payroll and adding exponentially to the cost of doing business. Not only will you have to pay these added employees, but it adds to the administrative cost of managing the new hires. By outsourcing logistics, you can save all that money, or use it to pay current employees for working at the things they’re really good at.
You’ll also save on the cost of maintenance and fuel for delivery vehicles. As your business grows, you’ll find yourself shipping greater quantities of product to a wider array of places. Accomplishing that on your own will most likely require a fleet of vans, trucks or cars for the sole purpose of making these deliveries.
To begin with, there is an initial cost in purchasing each of these vehicles. Then each vehicle in that fleet will require regular maintenance and fuel in addition to the ongoing cost of insurance and registration. And of course, despite your best efforts, there will always be unexpected repairs when you are running that many vehicles frequently. Over time, all those costs on all those vehicles can really add up.
On the other hand, when you outsource to a reputable courier delivery service, you’re passing those costs along to a third party who has already planned and budgeted for them. That means you can cut out all those burdensome extra costs which may otherwise eat away at your bottom line.
A good courier service has the knowledge and expertise to keep vehicles on the road affordably, so it’s a cost that you don’t have to worry about.
Besides saving money, outsourcing to a courier service will have the effect of bringing more revenue simply because you can sell and transport more of your product more quickly.
Freedom To Focus On Your Core Business
If you run a small business, then you and your employees must wear many hats. Coming up with new ideas, promoting your product effectively, maintaining customer relations and balancing the books are just a few of the tasks which can quickly eat up all your time. Especially in the early days of your business, wearing these many hats can be exhausting.
So the last thing you want to do is add one more task to your already full and diverse plate by taking on delivery logistics as well.
After all, you have a vision for the future of your business, and you don’t want anything to distract you and your team from that vision.
To make your dreams come true, you truly need every member of your team to be fully engaged in the area of their core competencies. As you work to overcome the many obstacles faced by a new business, you’ll be best served by hiring experts to tackle those areas outside your own area of expertise. And that includes logistic management. This is an approach which allows you to grow your business quicker and results in happier customers over time.
That’s because your business’ unique core competencies ultimately are what distinguish you from your competitors. By operating within your area of strength, you drive innovation in your business, leading to a better quality of products.
The best gift you can give to your business is your time. That is of more value than almost anything else. Outsourcing allows you to guard that time carefully and put it to work where it really counts the most.
Of course, freeing up your time by outsourcing logistics requires you to choose your courier express service carefully. The best courier delivery service will take their job just as seriously as you take yours. They will carry out that job with great professionalism, attention to detail and a positive attitude. That way you don’t have to worry about logistics at all, because you’ll be able to trust that it’s all in the right hands.
To go along with that, be sure that you clearly communicate your expectations to any courier service that you hire. Make sure you’re on the same page regarding the amount of deliveries they can handle, as well as timeliness and professionalism.
Tools and Technology
It’s a real challenge for any business to keep up with the newest and best technology. As soon as you’ve learned how to use one tool effectively, an even better one emerges. This is true in all aspects of running a business, and that includes logistic management.
The Internet of Things (IoT) has opened up a whole new universe of capabilities when it comes to collecting, storing, organizing, and using large amounts of data. The cloud provides seemingly limitless ways to simplify the task of logistics management. In fact, we’re still learning about the many possibilities.
As a business owner, it’s already enough of a challenge for you to keep up with emerging technological tools and trends that affect your core business. But keeping up with the most up-to-date logistics management technology is just too much, and should be left to the experts.
The right express delivery service will have access to all the best technology and tools. These can benefit your business in many ways.
For one thing, real-time updates on your inventory makes it simple for you (and your customers) to know exactly how much of certain items you can sell, eliminating time-sucking miscommunication when buyers try to order sold-out items. It also empowers you to be more strategic in your production, with a clearer understanding of where demand is greatest.
Route optimization is another essential tool which a good courier service can provide. With this technology, drivers simply input the addresses to which they must make deliveries and the app plans out the quickest route, taking into account potential delays caused by traffic or road closures. This ensures that packages arrive at their destination as quickly and efficiently as possible, resulting in happy customers.
The use of receiver notifications is another handy tool which can boost customer satisfaction, as it notifies them of exactly where and when they can expect to receive their item.
Driver tracking instantly alerts the courier service when an issue arises with a particular driver or vehicle. This allows them to troubleshoot the problem immediately and to minimize any resulting delays.
And finally, handheld devices which capture signatures provide a convenient way to generate proofs of delivery while on the go.
All of these tools, and so many more that we haven’t listed here, allow a smooth, efficient and satisfying delivery process which you would not be able to accomplish on your own.
Flexible Staffing
Often, the task of staffing your business adequately and affordably can feel like a moving target.
How do you find that sweet spot where you have just the right amount of talent to succeed, no more, no less?
Flexible staffing is one of the most effective solutions to this challenge. It allows you to adjust your staffing levels as needed based on demand while keeping fewer people on the payroll.
The talent of freelancers and temps can easily be leveraged to meet immediate needs in your company, while providing you with the easy ability to scale down when their services are no longer needed.
Conversely, this flexibility also gives you the freedom to expand when the time is right through short-term contracts with people who can lend you their talent as needed.
Outsourcing to a courier service makes it possible for you to enjoy the benefits of flexible staffing. You can hire as many or as few drivers as you need at any given time. With the right courier service, you also have the freedom to expand your delivery area or the types of products that you offer.
Customers can opt for special delivery services like same-day or one-day delivery. The opportunities for expansion exist without the necessity of recruiting new staff members and adding them to the payroll, only to take them off the payroll if and when things slow down.
Flexible staffing is especially beneficial if your business spikes during a certain season. Maybe you sell outdoor gear that is popular in the summer months, while slowing down to a trickle in the winter. Or maybe your specialty is holiday decorations, in which case you’ll be busy during the holiday season, but slow in between. If this sounds like you, you may be reluctant to hire staff during your busy months only to lay them off when things are slow.
Fortunately, your delivery service does not have to be affected by these fluctuations. Drivers are readily available when demand is high, and when it slows, you don’t have to worry that you’re putting anyone out of a job.
The Right Mix of Vehicles
What is the right number of delivery vehicles to have in a private fleet? And what kind of vehicles should they be? Trucks with trailers? Vans, small cars, maybe even some bicycles?
It can be really tough to predict exactly what kind and how many vehicles you’ll require to meet delivery needs.
Those needs change from one day to the next. With your own fleet, you’re likely to end up with expensive vehicles that just sit around or with too few vehicles to adequately meet demand. It’s almost impossible to plan adequately to avoid one or both of these problems.
The other problem you might have is too many of the wrong kind of vehicle, but not enough of the right one. A fleet of large vans may serve you well most of the time, but what about the same-day delivery of that one small specialty item? Using a large van for that one item is a waste of space and gas.
On the other hand, what if a time comes when you want to begin selling and delivering furniture, large appliances, or some other type of bulky item? If you’ve assembled a fleet of small cars, you simply won’t have the flexibility to expand in this way.
But a courier company has that flexibility. The right company has a mix of various types of delivery vehicles which they can utilize to address the many and varied needs of your business. This gives you the freedom to branch out into different products and services in the future.
Want to offer same-day delivery of small specialty items? Not a problem. Want to sell some new trendy furniture? You can do that, too. A courier service has the flexibility to adapt to your changing needs, and they keep many different types of vehicles on hand so you don’t have to.
In addition, outsourcing to a courier service allows you to increase freight capacity with ease. In fact, one of the most popular third-party services for businesses is freight forwarding. So it’s smart to leave that option open for your business by contracting with a reputable courier company.
Decisions around outsourcing are definitely some of the most difficult, as well as the most important, decisions you’ll be called upon to make in the life of your small business. But when it comes to outsourcing logistics, it’s a clear win-win.
