Traditional Courier Services vs Technology-Enabled Last Mile Delivery Providers: What is the Difference?
May 7, 2019 7:49 PM
Traditional Courier Services vs Technology-Enabled Last Mile Delivery Providers: What is the Difference and Why Does it Matter?
What are the factors I should consider in deciding on the last-mile delivery provider for my business?
Read on for the full details and more insights into the differences between traditional courier services and technology-enabled last mile delivery companies:
|Traditional Courier Services||Technology-Enabled Last Mile Delivery|
|Affordability||More affordable pricing is expected. However, a manual handling of processes limits the capacity of traditional courier services to manage high delivery volumes. Diseconomies of scale may occur as a result.||Batching and chaining technology, route optimisation technology, real-time status updates are the many tools of last mile delivery software today. These features boosts productivity, eliminates any unnecessary idling and optimises deliveries for cost efficiency.|
|Supply Flexibility||Fixed full-time drivers lends familiarity and provides consistency, especially if the drivers are reliable. However, manpower is not flexible and may not be able to cope with sudden surges in delivery volumes.||Crowdsourced, flexible supply of delivery agents. There may be a need to liaise with several delivery agents at any one-time. However, a flexible supply of workers will ensure that you're able to meet high peak season delivery demands and prevent idle manpower during low season.|
|Delivery Options, Visibility and Reliability||1. Delivery Options: Delivery window unpredictable and dependent on the courier's schedule. Deliveries that take up to 5 days to reach recipients would be the norm.
2. Visibility and Reliability: Lack of tracking technology, parcels are dispatched manually without any real-time monitoring. This results in a limited view of whether parcels have reached your customers safely and on-time.
|1. Delivery Options: Scalability and an ability to cope with huge delivery volumes would mean that short lead times supporting on-demand, same day or next day deliveries are possible.
2. Visibility and Reliability: Real-time GPS Tracking of parcel's location, when delivery agents are enroute and when delivery is complete. This meets the modern customer' expectations of knowing exactly where their parcel is.
|Delivery Process & Accuracy||Manual Handling of Delivery Orders: Invoices and payment is still via paper and pen. This is bound to human error and more operational work. Additional customer service support may be needed to rectify these errors.||Automated Deliveries: The use of a digital dashboard and analytics-driven applications reduces risks of human errors such as incorrect addresses. Predictive analytics will also help to improve business operations and forecast future demand.|