The Benefits of Outsourcing Delivery for Businesses
The Benefits of Outsourcing Delivery for Businesses
Delivery is no longer a convenience; it is a necessity.
When credit cards were first introduced in the 1950s, they were a convenience, and not every retailer accepted them. Because of the incredible convenience of using cards, which were easier to carry than cash and didn’t require a trip to the ATM, their popularity grew. Today, this form of payment is used nearly universally. You would struggle to stay in business if you only accepted cash payments.
In a similar fashion, delivery used to be considered a premium, upsell service. It was a nice benefit to customers if you were able to offer it, but far from necessary. However, with online competitors offering easy and convenient delivery options with every e-commerce order, this is no longer the case. According to a 2018 Deloitte Holiday Survey, 77% of consumers cite convenience as a top reason for shopping online. Furthermore, a 2018 Global Consumer Insights Survey reports that 41% of consumers are willing to pay more for same-day delivery.
The need for brick and mortar retailers to offer local delivery is becoming increasingly essential as they compete with the convenience and speed of online e-commerce giants and their 2-day and same-day delivery options. But, the time and financial resources required to manage a delivery fleet can be draining, especially for small businesses with little start-up capital. While there are pros and cons to keeping operations internally, business owners should consider a simple yet effective supply chain solution to provide a stellar customer experience: outsourcing delivery.
Let’s have a look at some of the main reasons why outsourcing delivery is a smart move for businesses.
The Benefits of Outsourcing Delivery
Low Startup Costs
Purchasing or renting a fleet of trucks and vans to support day-to-day deliveries is no small undertaking. In addition to the large amount of startup capital that’s required to hire qualified drivers and build a sizable fleet, you must also factor in the fuel and repair costs to maintain these vehicles.
Outsourcing delivery to a third party company requires virtually no upfront investment, which is especially helpful for small businesses that closely manage their budgets. A delivery service platform like GoShare offers a virtual fleet at affordable rates with no hidden fees or contracts.
The cost of adding delivery drivers may be more than some businesses can absorb, and could require resources be diverted from other areas – including hiring or investing in company improvements, such as software or store remodeling. Additionally, factors such as seasonality and marketing efforts often lead to volume swings of on-demand deliveries. An outsourced solution allows you to quickly scale up or down with the demand. This eliminates the possibility of overstaffing an internal fleet during slow periods or understaffing and losing customers.
Using outsourced delivery allows you to refocus your resources where they are most needed. With the right affordable partner, you should be able to pass through delivery costs to customers. And, many 3PL companies absorb the cost of insurance and delivery damage claims, meaning you don’t need to add additional coverage to your policy.
The amount of time spent recruiting, training, and monitoring your delivery staff, as well as maintaining your fleet, puts a strain on day-to-day operations. When delivery volume gets hectic, the time investment of tracking and managing every order is cumbersome and largely inefficient.
Businesses that outsource delivery are able to successfully avoid menial tasks and free up time for increased productivity among other important activities. Letting a 3PL company handle the details of delivery allows businesses to focus on their core strengths, whether that’s maintaining a unique inventory selection or offering incredible customer experiences.
A Solution for Outsourcing Delivery
GoShare is a simple solution for businesses that need a reliable 3rd party delivery service for outsourcing delivery. The GoShare app helps businesses with deliveries on demand, connecting them to a local network of drivers with a versatile array of vehicles. Smaller vehicles are available for small packages, while pickup trucks, cargo vans, and box trucks are available for large items. With GoShare’s virtual fleet, your business can avoid handling tedious logistics processes and instead achieve effective last-day delivery on demand for your customers.
GoShare’s local fleet means you can expect a driver ready at the pickup location in as little as half an hour. But, you always have the ability to schedule multiple orders in advance as well. Payment is handled online, and our automated tracking system and push notifications allow you to stay up-to-date on your delivery order at all times.
The growing consumer demands of convenience and speed is a challenge for businesses, but GoShare makes it straightforward to meet those demands. By using a delivery service app like GoShare, businesses can effectively automate their logistics and offer same-day delivery on demand to satisfy their customers.
To learn more about how GoShare can help e-commerce businesses with last mile delivery, visit GoShare.co/Business.
If you found this article helpful, check out these additional posts for more information about the logistics and last mile delivery industries.
- The Importance of Last Mile Delivery for E-Commerce
- Retail Delivery Best Practices
- Why Robotics Process Automation is Essential in Logistics
- Navigating Costs in the Trucking Industry
- Using On-Demand Transportation for the Construction Industry
- How a Virtual Fleet Can Leverage Businesses With LTL Freight
- How Technology is Driving Rising Customer Expectations
- Jobsite Delivery Service App for Fast, Local Deliveries