Peaks and troughs in business demand can place your transport and parcel delivery under huge pressure. Walter Scremin explains how you can best manage these often seasonal or unpredictable fluctuations.
If your business relies on transport and parcel delivery, there are three big questions to address:
1. Do you have the flexibility for seasonal workloads?
For many companies transport is a fixed investment. A spike in orders may create headaches and compromise service because access to more resources is unavailable at short notice. Does your business try and fudge its way through with unsatisfactory results, or does it engage a more flexible solution?
For many companies a smarter option is scalable transport solutions, where extra resources can be employed quickly. This not only manages the spikes in workloads better, it turns transport into a variable cost so the parcel delivery spend better reflects business turnover.
2. Is there a seasonal jump in courier costs?
SMEs commonly resort to courier companies when parcel delivery demands run hot and the existing fleet can’t handle the load. But this is an expensive stop-gap.
Couriers have a high-cost per delivery and do not offer the same level of service as dedicated drivers. If courier costs are going through the roof at certain times of year, whether it be Christmas, Easter, summer or winter, it may be time to consider more flexible transport options.
3. Is our parcel delivery as efficient as it could be?
Peaks in demand test your efficiency. I have seen several businesses significantly increase their parcel delivery capabilities without needing to increase their resources. These businesses have increased parcel deliveries by around 20 per cent, with the same resources, just by employing a practical GPS system and some nous in transport management. GPS technology ensures more transparency, efficiency and makes customer service more responsive.
Walter Scremin is General Manager of Ontime Group.
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