Should I Outsource My Delivery? Own Fleet (In House) vs Outsourced vs Hybrid

Is it better to deliver yourself or to outsource your deliveries? Before deciding on running an in-house delivery fleet or outsourcing to a third party last mile delivery provider, have you considered the pros and cons, or done the math? Having your own fleet does give you the ability to control and shape your customer's journey from order creation to delivery completion. And when managed well, might lead to cost savings. On the other hand, with seasonal fluctuations in sales and orders, having a fixed supply of your own drivers can lead to an over and undersupply of drivers. Insufficient drivers to meet your sudden spikes in demands will make it difficult for you to scale your business and having too many drivers on standby is inefficient and costly. When you leverage on existing on-demand last mile delivery providers, the cost of recruiting drivers, training them can be deferred while you focus on your company's core product. This will give your business an increased capacity for flexibility and market expansion. At the end of the day, every business operates differently. While a larger company may have the capacity and bandwidth to manage their own private fleet well, smaller companies may prefer to outsource their deliveries. Some companies, may even take the unusual move of adopting a hybrid delivery model (Mix of their own in-house fleet and outsourced third party delivery partner). As such, to improve efficiency and scale your business well, it is necessary to understand the pros and cons of each logistics model and factors you should consider before making a decision on the model to adopt for your business.

Also learn from a successful business case study: Understand how Style Theory - Singapore’s first and Southeast Asia’s largest fashion rental platform and subscription model was able to achieve a 98% customer satisfaction rate with a hybrid delivery model.