The volume of Singapore E-commerce and parcel deliveries are on the rise in Singapore. The boom in the E-commerce popularity has contributed to the direct increase in growth rate of the courier companies in Singapore. Many courier companies in Singapore offer parcel delivery Singapore services. The parcels can range from small to large size. Traditionally targeting the residential and commercial players, the courier companies now turn their attention to target the E-commerce players. Successful E-commerce businesses have huge parcel deliveries to fulfill and often, they outsource the logistics operations to courier companies. The volume of deliveries per month can easily reach hundreds and thousands of deliveries.
Although some E-commerce businesses prefer to manage the delivery logistics internally, most E-commerce businesses know that it is more beneficial to outsource it to a courier company than to hire deliverymen internally. Of course, the assumption is that you will be able to find a reliable courier company in Singapore that will fulfill all the deliveries without major hiccups.
Firstly, it will save the E-commerce business owners a lot of trouble trying to fulfill the deliveries. Delivery logistics is one of the most complex and troublesome operations in the whole E-commerce supply chain. If an external party can manage it well for the E-commerce business, it will make sense to do so. As the courier companies’ core competency is the management of delivery operations, it is most likely that they will be able to handle the delivery logistics operations better than E-commerce businesses which core competency is on the procurement and products management instead.
Secondly, not only will the external party manage the delivery logistics better than the E-commerce business, they will be able to provide cost saving for the E-commerce businesses. The cost of engaging an external courier company to manage the deliveries will most likely be lower than the cost of hiring deliverymen to handle the logistics internally.
Hence, it will make both operational and financial sense to outsource the logistics operations to an external courier company.