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.
If you only require courier services once in a long while, then there is no need for you to really negotiate better delivery services contract because you would have no bargaining power.
However, if you require frequent and regular delivery services in Singapore, then you need to negotiate for a better contract with the courier company. (You can do this and have bargaining power if you have high volumes of deliveries needed per month).
First of all, you should know approximately how many deliveries you require per month and check out the courier companies’ pricing first (if listed on their website) before actually contacting them. This is so that you know the grounds from which you would begin to negotiate with the Singapore delivery services company.
Second of all, you should check if the courier company separates pricing for parcels versus documents. Many courier companies do this, so make sure to find out.
Third of all, you can either call them or email them. In my opinion, you should email them. This is because a company which does not even reply emails quickly in this day and age are probably backwards in terms of their operations as well and do not keep up with the times and you do not want to work with a delivery company like that. This may sound like over-generalization but it is true and you want to be safe rather than sorry.
Fourth of all, ask them for waivers on outskirt charges. One of the most common surcharges by courier companies in Singapore are outskirt charges. You would do great and reduce a lot of cost if you could possibly reduce or get the outskirt charges for your deliveries waived.
Next of all, another common surcharge would be weight. Although only E-commerce companies might need to negotiate this point, normal businesses which require delivery or courier services might also want to take note. Usually, courier companies charge excess weight surcharges if your documents or parcels exceed their maximum weight capacity for a usual delivery. Some companies charge high prices while others more reasonable. Either way, make sure to negotiate this point with the courier company.
If you are a business owner who requires courier services for yourself or your company, then chances are, you would be highly interested in knowing about the pricing for courier companies in Singapore so that you can make the right decision when choosing a Singapore courier company to work with in the long term.
Here are the various methods which courier companies in Singapore use to price their services.
The most common method would be the distance method. Clearly, distance between the pick up and delivery locations within Singapore would be an important factor when it comes to pricing. Some courier companies will separate the various regions in Singapore according to city and then various outskirts as well. Charges would apply according for these places.
Also, a common pricing technique among courier services in Singapore would be the charges according to weight and item type. Most courier companies would allocate a rider (motorcycle) to pick up and deliver your item(s) if they were documents. This is because it can be easily kept in the storage box of a motorcycle. However, if you are going to need courier services for parcel(s) or fragile item(s), then a motorcycle may not be the best idea! In such a case, a courier driving a van would be allocated to you. Therefore, you would definitely be charged more for parcel(s) deliveries versus a document delivery.
Weight also matters up till a certain extent. Most courier companies charge extra if your weight exceeds whatever their set limit is. Beyond that, you would need to pay extra if you want to deliver your item(s) with them..
In a nutshell, there are usually many extra charges on top of a courier service’s base rate. Therefore, before blindly signing up with a company, clarify everything with them first. Additionally, rates may be different (which is usually the case) for companies which requires higher volume of deliveries for every month.
Courier services around the world as documented by Syndit can be vastly differing. In this case, we shall just touch about courier services in Singapore alone.
There are several very reliable and professional private courier companies in Singapore like PCA Masters Pte Ltd and ixpress647. These are local courier companies started by individual entrepreneurs in Singapore. Most of them hire both bikers as well as van / car drivers to perform courier deliveries locally in Singapore. They are also private owned and they provide door to door delivery services through the bikers and drivers they engage.
There is also the state registered mail post by SingPost. This is also a form of courier service but one of the biggest differences is that SingPost requires you to drop by their branch office to pass your goods to them before they will help you perform deliveries. This is certainly not a door to door delivery service… which is why SingPost (Speedpost) can be quite inconvenient for customers who only want door to door delivery services. There are many instances where the sender simply has no time or luxury to queue up for at least 20 to 30 minutes at the local Speedpost office. In such situations, Speedpost’s courier services would definitely not be your most preferred choice.
Finally, there are the large courier companies like DHL, UPS, Fedex, TNT, e.t.c. These are international freight and courier companies. However, one thing you might want to note is that they are very cheap and affordable for international freight and delivery services, but when it comes to local Singapore deliveries, local courier companies like PCA Masters and Regent would probably perform better and at more affordable rates.
It is important for you to fully understand the above before you decide to engage any of their services. Although analysing too much can make you feel very confused, the above information is just basic and you should ideally know them.