Traditional Courier Services vs Technology-Enabled Last Mile Delivery Providers: Why Does it Matter?

Traditional vs Technology-Enabled Delivery ProviderRapid technological advances has been and is transforming the logistics landscape. Given that fast deliveries are a key factor that influences the buying decision of more than 25% of consumers today, many businesses are seeing the value of investing in technology-enabled last mile delivery providers that can support fast deliveries.

Likewise, to keep up with the rising trends in the last-mile and meet customers’ expectations for faster deliveries, traditional giants such as DHL are disrupting their business model to integrate innovative technology into their operations and supply chain strategy. Many retailers are also struggling to catch up to companies like Amazon who has the first-to-market advantage and is offering two-hour delivery.

Perhaps you’ve been using a traditional courier for your business for years and would like to improve your last mile delivery services. However, you are in two minds on whether you should be switching to a new last mile delivery service provider.

Here are some insights into their differences:

Traditional Courier Service Technology-Enabled Delivery Providers

Affordability

Less affordable

Last-mile delivery operations are not streamlined and processes are handled manually. This could decrease efficiency and increases cost.

Cost-effective

Batching and chaining technology automatically bundles pick up and drop off in a way that optimises deliveries and saves on cost. 

Supply Flexibility

Fleet of full-time drivers

While there is a fixed manpower supply that provides consistency and a familiar face to your deliveries, it may be under-utilised during off peak season, or stretched during sudden on-demand spikes.

Crowdsourced, dedicated supply of delivery agents

Crowdsourcing allows room for a flexible supply of workers that are able to meet low peak and high peak season demands.

Transparency and Visibility through live tracking

Unpredictable delivery window, 3-5 days deliveries are the norm

No tracking technology; parcels are dispatched manually without any real-time monitoring. Limited view of whether parcels have reached your customers safely. 

Recipients may not be present to receive parcel. This reduces efficiency and also frustrates their experience.

Reliable and accurate delivery window, Versatile delivery options, same day and next day deliveries are available

Real-time GPS tracking of delivery agents.

Customers have the ability to liaise with delivery agent when parcel is on its way with expected delivery timing.

Delivery Process and Reliability

Manual handling of delivery orders

Invoicing and payment using paper and pen, resulting in more operational work and human error. Additional customer service support to rectify these errors become necessary.

Delivery process is automated

The use of analytics-driven applications reduce risks of human errors such as incorrect addresses, improving your business operations.

Our answer on whether you should switch from a traditional courier service to a technology-enabled delivery provider? A hundred times yes! Change takes time and could be daunting at the start, but we guarantee you that the long-term benefits will far outweigh the cost! 

Believe it or not, Pickupp is the only technology-enabled last mile delivery provider that provides all of the above. Our easy-to-use portal, parcel tracking and rating system will make your transition from a traditional courier service to technology-enabled delivery provider as smooth as possible. Also, no drone delivery for now, but as we’re constantly innovating our services, it could be a real possibility in the near future! 

To test our services, sign up for a free trial with us here: