There is a perception couriers are cheap, and this is probably true for businesses which have few delivery requirements.
But for small businesses with more frequent parcel deliveries, or with difficult-to-handle parcels, couriers may be an expensive option.
There is another factor – customers are now expecting more: A survey by IT firm Localz found 94 per cent of customers would choose a different shop or brand based on different delivery options.
JDA/Centiro’s Customer Pulse 2017 Report, conducted by YouGov and co-sponsored by Honeywell, found 70 per cent of Australian online shoppers would likely switch if they had a poor outcome with ordering an item online – most problems revolved around deliveries, with 50 per cent experiencing late delivery in the last 12 months.
There’s a point where small business must make a call between using couriers, or implementing a more professional system – alternatives include flexible arrangements with specialist transport providers which provide branded vehicles, dedicated drivers in your uniform, and back-up drivers in case of absentees.
But how do you know when it’s time to move on from couriers? Here are some key signs:
- Warehouse and dispatch area chaos
More couriers mean more chaos in the warehouse and dispatch area – couriers coming and going at random will interrupt any systemised approach for picking orders in the warehouse. Organising couriers becomes a weak link in the process, causing delivery times to stretch out. Businesses with a dedicated transport solution perform more consistently in their delivery times.
- You’re resorting to doing your own deliveries
Small-business owners desperate to get a last-minute delivery out there will often resort to doing the delivery themselves because it’s quicker than arranging a courier – but business owners have better things to do, and if this occurs it’s time to consider a more responsive solution.
- Courier costs are mounting
Couriers might be cheap when used occasionally. But on a cost-per-delivery basis couriers are more expensive than many dedicated solutions. If the costs are climbing with couriers, it’s time to consider some other options – you may be surprised to learn some dedicated solutions can be cheaper.
- More returns and complaints
Damaged goods or misplaced deliveries must be avoided at all costs. More complaints along these lines is a sure sign it’s time to consider other options.
- More customers calling up about the delivery
Customers have no idea where the delivery is at, so they call you. This is because most couriers don’t use a telematics system to track deliveries. If customer service is important to your business it’s probably time to consider more professional alternatives.
- Unusual or fragile parcels
If you are transporting expensive, rare or bespoke items, then what are the risks of them being damaged in transit? While a courier may seem cheap at first, if goods are damaged it could be an expensive mistake, not to mention your reputation with customers could take a hit. Couriers are generallyt not set up to deliver anything requiring special treatment including large, unusual or fragile parcels.
Walter Scremin, General Manager, Ontime Group