It is natural for people to want the best value for their money. For people who wish to engage courier services in Singapore, here’s the good news – courier services are affordable in Singapore.
If you look around the market, you will easily find cheap Singapore courier service offered by multiple logistics companies. The large competition between logistics companies have benefited the consumers. Due to the presence of many small, medium, and large sized courier companies, the fierce competition between them pushed down the prices. Every one of them are vying for customers. It is essentially a price competition between them. Only a few courier companies such as PCA Masters and Regent Courier are also going for quality differentiation in the market.
Besides the high competition, part of the reasons why the courier companies are able to push prices low is that they have adopted the use of technology in their operations and achieved economies of scale. Software such as route planning and Customer Relationship Management (CRM) have greatly reduced their operation lead time. This means that with the same amount of resources, they are do things faster and better. This will directly translate to higher profits for them. Those courier companies that cannot keep up with times and fail to adopt technology will be lagging behind the competition. If they have not been eliminated, soon they will be.
The great infrastructure such as the smooth and straight roads in Singapore also make delivery operations more efficient. In addition, Singapore’s small size enabled the couriers to memorize the routes easily. There are few incidents of couriers getting lost around in Singapore.
Though the courier services may be seen as extremely low in the eyes of some consumers, they can be assured that the prices are sustainable due to the many reasons as described above. If you think that you can deliver a certain item using less time or cost than the courier companies in Singapore, then you will be wrong. Though they offer cheap Singapore courier service, there are certain standards to their delivery. Delivery by courier companies will surely be more efficient and less costly than delivery by individuals.
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.