Want to start a local delivery business? This guide may help
These days, an increasing number of companies are looking into hiring delivery services so they can ship products to their target consumers, especially in this era of social distancing.
Local delivery services can play key roles in business expansion and can be highly profitable if they’re developed correctly. If you want to start a local delivery service, read on – this guide has some key points you’ll want to incorporate.
Find and stick with a niche… at least at first
Before launching your delivery business, remember that you should find and stick with a delivery niche until you build up enough capital and infrastructure to handle bigger delivery commitments. In other words, only commit to delivering certain types of products and in a certain area instead of attempting to be the next Amazon of delivery without the decades of development that giant has benefited from.
Fortunately, you should already have a good idea about what you want to/can deliver to consumers for companies. Look at your existing infrastructure and transportation vehicles, as well as your workforce, to narrow this down even further.
For instance, if you only have a few trucks and yourself plus another couple of people to work as drivers, you’re better off making local deliveries for furniture or other concentrated or specific loads. If you have an entire fleet of trucks and a larger workforce, you can deliver more goods to a wider area.
Get software to optimize for last-mile delivery
Regardless of the niche you choose to focus on, remember that you’ll need to get the right delivery management software to ensure you can optimize your last-mile delivery efforts. Last-mile delivery is the part of the delivery process from when an item is picked up at a warehouse or storage facility and brought to a customer’s door.
What software should you choose? There are several solutions that are likely worth your while. For instance, package delivery optimization software can help you plan the best routes for your drivers no matter the destination, minimizing turn around.
Alternatively, consider proof of delivery apps, which reduce liability and allow your drivers to ensure that their packages are delivered to the right person. Fortunately, this guide describes how you can choose the best proof of delivery app for your team.
Be efficient with warehousing and storage
Similarly, you’ll want to optimize your warehousing and storage practices as much as possible. The more organized your storage facility is, the faster you or your employees will be able to retrieve products for delivery drivers and get that product to customers’ doors.
On the flip side, unorganized storage facilities can lead to logistics disasters quickly. A single misplaced item could delay an entire shipment, leading not just one but dozens of customers to feel dissatisfied with your service. If you want to cultivate a reputation as one of the best local delivery services in town, prompt service and accurate product delivery are key.
To that end, leverage warehouse management software and make sure that your storage facility is as organized and well-kept as possible.
Make sure you have the equipment necessary for success
You should also make sure that you have all the equipment you need for your business to thrive in your chosen niche. Don’t try to skate by with a bare minimum of equipment and vehicles.
Delivery services often need equipment like:
- Delivery trucks
- Lifting gear
- Protective gear
- Furniture protection pads
- And more
It all depends on what exactly you plan to deliver and how far you plan to expand your delivery range. Whatever you choose, make sure you have the equipment for it. That way, your delivery personnel aren’t struggling to keep up with orders using a fleet of trucks that doesn’t have enough space to keep up with demand.
All in all, starting a local delivery service can be a great idea. It may even lead to significant profits over the next few years. But you’ll need to make sure you set up and run the company efficiently if you want to succeed in this competitive industry.
Photo by Lucian Alexe