Do you operate a business that offers delivery? Did you know that in Canada alone, over $155 billion US was spent by businesses on logistics costs alone? This is certainly good news for logistics businesses, but if your company is not specifically a logistics business, it’s a huge expenditure that needs to be paid out of your potential profits. Outsourcing your deliveries to a third-party last-mile delivery partner can make all the difference.
And with e-commerce businesses quickly becoming a bigger part of the retail market, figuring out how to provide your customers with express deliveries are more important than ever.
What Is Last-Mile Delivery?
Last-mile delivery is specifically the final link between the vendor and the customer. After finding the products they want and completing their purchase, the customer needs to get those products from the business. Often, this can be the single most challenging step of the whole transaction. Specifically because of the logistics, planning, and service required. Businesses that take care of this service themselves invest a serious amount of money into it.
This is not necessarily because they want the service to be of the highest quality, but out of necessity. This step alone requires trained delivery drivers, vehicles to perform the deliveries, insurance to cover it all. And that’s without any fancy tech to provide live tracking for customers and the other bells and whistles that other delivery companies provide.
So, let’s take a quick look at the pros and cons of outsourcing.
Pros of Outsourcing to Third-Party Last-Mile Companies
Outsourcing your deliveries can quickly improve the profits for your business. You may think you read that sentence wrong, but you didn’t. By removing the need to handle delivery services in-house, many companies can cut down a major cost. In addition, offload serious liabilities such as vehicles and constant outgoings such as fuel and insurance. The money saved can easily be reinvested into outsourcing and other more profitable parts of your business.
Outsourcing can also lead to improved efficiency for your business. You can turn your focus from maintaining a fleet of vehicles, planning and perfecting transport routes, and driver recruitment to the parts of your business that earn money. There are already over 16,000 businesses dedicated to courier and delivery services in Canada alone, all with more experience than the average e-commerce business and ready to take care of your last-mile delivery needs.
In addition, outsourcing can mean your company has the ability to scale quickly by offering deliveries to a larger radius and at a quicker pace. FlashBox even offers same-day delivery for customers.
Cons of Outsourcing Last-Mile Deliveries
Now, outsourcing may not be for every business. There are a few barriers to consider. Keeping control of operations obviously gets a little more complex when you outsource. With this in mind, having great visibility and communication with the provider is important. Round-the-clock support and tracking abilities, such as those that FlashBox offers, can certainly help improve your control and service visibility. Outsourcing also means depending on another provider, so you need to make sure it’s a company you trust. Also, ensure that they keep in frequent communication to ensure the best results.
Is Your Business Ready To Dedicate Time or Invest Money Into Last-Mile Delivery?
Are you interested in outsourcing delivery to third-party last-mile delivery providers? Try FlashBox risk-free today. Get Started Now!
