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Why Outsourcing Delivery Is Key for Local Businesses

The looming recession has businesses re-evaluating how they operate, putting a focus on efficiencies now more than ever. There’s a variety of factors that can affect your daily operations and delivery is one of the top considerations where hidden costs can add up quickly. By outsourcing your deliveries you avoid wasted time and remove the headaches of delivery logistics, all while increasing productivity.

Jennifer Juarez

July 21, 2022
June 11, 2024
Last Updated

The looming recession has businesses reevaluating how they operate, putting a focus on efficiencies now more than ever. As you think about what you can do with your own business, consider these situations, and ask yourself if any of these sound familiar:

  • You’re a mechanic and you need a part from another dealership and have to wait for a salesperson to drive the part over. 
  • You’re a graphic designer at a local print shop who has to drop off some banners for an event because you’re the only one available. 
  • Or lastly, you’re a painter who is running low on paint and your shop is scrambling to find someone to deliver more. 

Not to mention, all the current tasks are at a standstill while someone takes care of these deliveries. Having a company to quickly and efficiently take care of these deliveries for you would have an immediate effect on productivity and save you money.

According to the Bureau of Labor Statistics, inflation accelerated in May, with pricing rising 8.6% from a year ago, for the fastest increase since December 1981. And it doesn’t show any signs of slowing. 

In addition, Lending Tree states that more than 77% of Americans –– or more than 196 million –– used an on-demand service within the last year. What does this all mean for delivery logistics? It means final-mile delivery isn’t going anywhere post-COVID. The need for speedy delivery is just the beginning.

Outsourcing Deliveries Saves You Time & Money

Here we take a look at the impact those earlier scenarios have on each of these businesses.

  • Consider any lost sales that dealership’s salesperson encountered because they had to transport the part to the mechanic. By outsourcing the delivery, they can continue to sell cars, making a profit for their company. 
  • For the graphic designer, how many more pieces of collateral could they have created during that time, allowing them to move on to additional projects? 
  • Finally, imagine how much faster the painter could have finished if they didn’t have to leave the job site in order to get more paint. 

Keep in mind, if you have a technician on a job who has to run and get a part, they cannot leave the job site unsecured. So if they’re an electrician or plumber, they have to make sure the area is safe before they can leave. This just adds to the time that could be better spent if you outsourced a company to take care of deliveries like this for you.

Now, we understand when the electrician travels 30 minutes each way to pick up a needed part, or the plumber leaves to run back to the warehouse, they lose money in the form of productivity. Plus, you’re paying them an average of $27/hour to drive now. 

But let’s assume you have a designated in-house driver who does your deliveries. The transportation costs still add up. You now need to consider the following monthly vehicle expenses*: 

  • Lease payments ($500 per vehicle)
  • Insurance ($142 per vehicle)
  • Gas prices ($4.57/gallon)
  • Repairs and maintenance ($99 per vehicle)

Add in the expenses* of: 

  • Onboarding ($4,000 per employee)
  • Training ($1,252 per employee)
  • Benefits ($11.82/hour)
  • Salary ($27/hour)

You have to ask yourself if this is the most efficient way to go about your deliveries. Not to mention, during the slow season, companies still have to find work for those drivers or risk layoffs.

Finally, what are your contingency plans if your vehicle breaks down or your internal driver is out sick? Can your company afford to wait to have that item delivered?

Increase Visibility and Control With Each Delivery

Does your company offer order tracking?

If you do deliveries internally you may be without any sort of driver or package tracking, which means if a package gets lost everyone has to stop what they’re doing and call around to find out where that package is and then call the customer back. 

You can gain back that lost time by using a service such as Dispatch, which provides transparency in the form of tracking. You can also get ETAs sent right to your phone or email with Dispatch’s branded notifications. Allowing you and your customers to know when the package has been delivered.

How about proof of delivery?

By utilizing Dispatch’s delivery platform, everyone can be assured knowing the item has successfully been delivered, through a digital photo or signature collected at drop-off. It’s added confirmation that the delivery is in the right hands and it’s extra insurance for you and for the driver.

Have you thought about reporting?

When it comes to evaluating your delivery needs and costs, it can be time consuming and tricky to have to grab a stack of invoices, or paper manifests and try combing through that data. As an added bonus to using Dispatch, we offer reporting on all your delivery data. You can see who your most frequent customers are, when your peak and slow seasons take place and more. It allows you to forecast and budget, planning ahead for the following year.

There’s a variety of factors that can affect your daily operations and delivery is one of the top considerations where hidden costs can add up quickly. By outsourcing your deliveries you avoid wasted time and remove the headaches of delivery logistics, all while increasing productivity. To learn more about how Dispatch can be the delivery service you need, visit our Marketplace page.

*figures represent national averages

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