CHALLENGES FACED BY LOGISTICS & COURIER COMPANIESWhile we may complain about our courier service, their prices and service delivery. The fact is that even the companies in the space of E com delivery, parcel delivery and express delivery face tremendous heat due to many challenges.

In this blog, we discuss some of these challenges. These problems often lead to increased cost of services, waste of time and poor service delivery.

People intensive industry: The courier and parcel delivery industry is extremely people intensive. This is especially true for the last mile deliveries. And the onus of maintaining service quality rests on these hundreds, or thousands, and at times millions of shoulders. So how do you ensure a common ethos of service delivery across this huge team size often spread over multiple locations of the globe? It is certainly not easy and the courier companies that rise above are the ones who take this challenge head on.

Typical requirements: Half the challenge of delivering a consignment is adjusting to the special care it requires during transit. The nature of consignment can vary considerably – from medicines to electronics and jewelry to perishable food products. It requires tremendous balance of man, machine and skill-set to safely deliver varied consignments to their right destinations.

Ever evolving technology: Technology is changing every other day. Competition drives the courier companies to regularly invest in evolving technologies to stay ahead of the competition. However, these changes require heavy investment and create need for new product training.

Customer demand: The customer requirements are getting more and more challenging with passing time and this creates a lot of pressure among parcel delivery and express delivery companies. While adhering to customer expectations, the vendors need to synergism various elements of their business such as HR, technology, customer contact, IT and infrastructure.

Competition and increasing overheads:  On the other hand, the courier companies are under  perpetual  pressure to provide time definite delivery at low prices due to high competition.  This is a  typical  situation  faced by most vendors in this industry.

Customer contact: When the client case is large, the quantum of customer handling via contact centers becomes a huge challenge. It requires perfect coordination with the operations crew that may be scattered across multiple locations. It also requires high end training for the customer contact agents to communicate effectively and gain the ability to portray an efficient face of the company.

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