If you are still pondering over whether to outsource your logistics operations, you should read my previous article for enlightenment.
If you have already decided to outsource your logistics operations, here are some tips for you.
There are a range of logistics services differing in their service standards in the market. The most common one will be the pure logistics delivery operations. In this case, the logistics company will be solely responsible for the delivery of the items. They do not offer long term storage of the items. In most instances, they also do not offer packaging of the items. Customers need to ensure that the items are properly packaged before handing them over to the logistics company. A better quality logistics service will include warehousing service. This means that the customers’ items can be kept safety in the logistics company’s warehouse for the long term. Instructions can be given to the logistics companies any time for them to move the goods to the delivery locations as and when is needed. Before you decide which logistics service to engage, carefully think through whether it is worth it to engage that service in terms of time saved and costs. If you can do it rather efficiently or if you do not require that additional service (for example requiring warehouse storage), then do not engage that logistics service. Most people only outsource the pure delivery operations to logistics companies. A good company that offer pure logistics delivery operations is PCA Masters Singapore.
Next, you should understand the pricing of courier services in Singapore. Different courier companies charge differently. Compare their pricing models against your delivery needs. Evaluate which pricing model will give you the lowest cost. The right decision can save you huge amounts of money in the long run.
Furthermore, as you increases your delivery volume over time, ask for more discounts for your deliveries. Logistics companies would have the economies of scale to carry out deliveries. Hence, the cost of delivery will be much lower for them. If you are giving them bigger business, you will have a higher bargaining power. Hence, you can take advantage of that and ask for more discounts to save you more money.