In-House or Outsourced Delivery – the Considerations

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For businesses choosing how to go about delivery there are a number of factors that come into play. Businesses need to consider the resources they have versus what they need, capacity to take on orders and the option to hire in house staff or outsource to a third party service.

Shipping and logistics isn’t just limited to delivery of goods to customers, all businesses have a need for a streamlined delivery process to operate efficiently. That said, there is no denying that the delivery of food and rise in popularity of online shopping has increased the demand for courier services.

Businesses owners need to take the time to identify their delivery needs and from there determine whether or not to keep it in house or outsource. There are pros and cons to in-house and outsourced delivery services, so what are the factors that need to be thought about?

Control

In-house: The obvious benefit to keeping delivery needs in house is maintaining control. Keeping logistics in house can allow quality control of items and the delivery process, so that each customer is happy.

Since your delivery team is in-house, you’re always in the loop with everything they do and can make direct changes without having to work through a management system other than your own.

Outsourced: A third-party drop shipping company will source, store and send on your behalf, whilst other fulfilment organisations will deliver products for you without having to relinquish your monitoring and tracking authority.

Some third-party couriers in Australia, offer efficient delivery services that allow you to retain full control. Companies such as Go People, allow clients to do just this and even provide specific instructions about how the item should be handled and the timeframe of delivery.

Cost and Sales

In-house: When you decide to keep deliveries in house, you’ll naturally incur additional costs. Everything you need for logistics to run smoothly will incur extra fees – staff, vehicle acquisition and even parking fees, are just a few of the additional expenses to consider. There is also compensation for staff and warehouse space to account for.  

Outsourced: A third-party provider can help you get a feel for delivery services before having your own in-house team. Cost for maintenance, storage space, staff and delivery can be cheaper with an outsourced courier provider. That way you can focus on other aspects of the business.

Productivity

In-house: Having a dedicated team in house to complete deliveries will allow you to offer an excellent quality of service overall. Keeping things in house can make it easier to monitor work, productivity and flexibility. It can also foster better communication between the fulfilment and customer service teams, which is particularly of use when solving delivery problems.

Outsourced: If you want your staff’s focus to be on other parts of the business, outsourcing your delivery needs can help. This allows you to increase your in-house teams productivity and have one less thing on the to do list.

There really is no one size fits all approach to logistics and delivery solutions. Businesses need to evaluate themselves time and time again to ensure that what you choose today is still helping you meet customer and client demands quickly and cost-effectively.

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ariana@campaignlab.com.au'

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