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Outsourcing Delivery Transport? Read this

Delivery Transport

Outsourcing your deliveries means hiring a third party to do the deliveries for you. A company like Ontime group specializes in taking care of the delivery process for several organizations.

The goal of a delivery company is to collect the products from your warehouses and deliver them to the addresses that you specify.

It is the most efficient mode of delivery and offers numerous advantages to organizations:

1. Higher Revenue Potential

Third-party companies have their own loyal customer base. When you hire them to complete your deliveries, your product and organization will be exposed to their customer base. This will give you the opportunity to let a whole new group of consumers learn about your products.

As a result, you will have the chance to pique the interest of new customers and there is more potential for an increase in sales.

2. Cut Down on Additional Costs

One of the biggest drawbacks of doing your deliveries in-house is hiring and maintaining a separate delivery staff. You will have to provide salaries and benefits to your drivers and delivery people. Moreover, the high maintenance costs for vehicles that are to be used for delivery will be a massive burden on your finances.

The more your business increases and the more deliveries you have to conduct, these costs will increase. It can be frustrating after a point as your profit margin will take a substantial hit due to these costs.

On top of that, your products will have to be priced slightly higher to make up for the cost of delivery which can lead you to miss out on grabbing several customers who would want cheaper products. When you outsource your delivery transport, you have the chance to get rid of all of these additional costs.

All you have to think about is paying the delivery company on a monthly or annual basis. The extra burden of maintaining vehicles, paying for staffers and fuel along with several other things will be removed.

As a result, the profit margin of your business would improve. You will also be able to set a lower price for your product in order to get more customers you would have otherwise missed out on.

3. Lesser Burden

One of the best things about outsourcing delivery transport is that it frees you from the additional business that comes with doing deliveries in-house. It is no secret that managing any business is a very tough job.

Now, add to that the burden of maintaining a delivery staff and a fleet of vehicles. Until the product is safely delivered to the customer, you will have to keep a close watch on the process because you are solely responsible for it. This can lead you to lose focus on the more important parts of your business and growth will be hampered.

When you hire a delivery company, all you have to do is load the trucks with your products and be rest assured that they will reach the destination. Everything in between- including the staffers, fuel costs, and vehicle malfunctions will be dealt with by the company.

Along with these pros, there are a couple of cons of outsourcing your deliveries as well:

4. Lesser Control

Once you load your packages in the delivery truck, you are no longer involved in the delivery process. The company you have hired will be solely responsible for everything after that.

However, several times, this can also mean that they are not careful while delivering your products and damage them before dropping them off. This will force you to reimburse the customers and your business will take a financial hit. Not to mention the loss of goodwill.

5. Lesser Brand Awareness

While outsourcing deliveries does expose your company to a number of new customers, it also tends to reduce the spotlight on your brand.

With in-house deliveries, you can promote your company on the vehicles which can lead to a lot of potential new customers learning about your brand. This is not possible in the case of outsourcing.

Over to you…

While there are cons of outsourcing your delivery transport, the benefits outweigh them by a big margin. Moreover, when you use the services of professionals like those at Ontime group, you will be able to avoid the cons and reap all of the benefits. 

Delivery Transport
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