What are the 4 mistakes businesses make when doing last-mile deliveries?
The final stage in logistics is the last mile – delivery from the store or warehouse of the seller to the buyer’s home or office. Businesses outsource couriers or logistics services, which is the only physical contact with the buyer. We have described popular logistics mistakes:
Mistake 1: Making one shared account for all employees.
Regular employees don’t need access to contracts, documents, or analytics to book a courier. Upper management (such as executives, directors, or managers) may need it, but not warehouse or store personnel. Creating different personal accounts to secure data and avoid fraud is crucial. It allows the team different access levels to view specific data based on their roles.
An employee having their account is a must when a company has many divisions working with different services of their logistics partner. Borzo provides as many accesses for your employees as necessary for convenient work and data security.
Mistake 2: Not training new employees to use (or work with) the service
The larger the business, the more difficult it is to track the quality of the work of a large team– down to regular employees. One person can discuss the conditions and details of working with a logistics service, and another person can be the one to book deliveries. Hence more risks, penalties for downtime, and cancellation of orders.
The manager does not always have time to train new employees and keep updated with the contract terms. To lessen risks, create a process including instructions on how the service works.
Mistake 3: Not insuring parcels and not declaring their value
Not all companies include the declared value when placing an order. In this case, the responsibility for the parcel’s safety lies with the courier. If something happens to the order, like losing or damaging the package, the courier will shoulder the cost.
To protect the recipient, the courier, and yourself from wasting time and money, we recommend that you always state the declared value at checkout. You will receive compensation within 1-3 business days in case of loss or damage. At Borzo, we can compensate up to Php10,000 (and up to Php25,000 for business accounts!)
Mistake 4: Booking more or fewer couriers than necessary
Businesses do not always assess demand without error and order more or fewer couriers for rent. For example, one courier delivers ten orders around Quezon City in 7 hours. But the manager books two couriers. The company spends more, and the other courier sits idle.
If it’s constant and you receive the same number of orders every day, order a courier rental. If demand falls, it’s more profitable to book couriers for each order, changing the delivery price. With the return of demand, the desired cost of delivery will return.
If you’ve decided to take the last mile outsourcing, get all the details and follow the processes. Proper management will help scale the business and attract new customers.
If you’ve experienced some of these business problems, you can consult our sales team on what solutions Borzo can offer to help avoid these in the future. 😊💙