Courier services are in constant demand in Singapore

Door-to-door courier services are in constant high demand in Singapore. Unlike the conventional mail post by SingPost, courier services provide you greater security and faster delivery. The couriers will travel to your designated collection location to pick up the items which they will deliver to the designated delivery location thereafter. Moreover, you can engage courier services for parcel deliveries, and not just document deliveries too. Courier service is considered a premium delivery service standard.

Why are courier services in constant demand? In another words, why is there a market for it?

Firstly, part of these demand for courier services is generated from the E-Commerce businesses. The business model of E-Commerce businesses require them to deliver their items to the consumers’ homes directly after the consumers make a purchase. Each E-Commerce businesses need a Singapore courier company to help them handle the logistics operations – to deliver all the goods to the customers timely and safely. As E-Commerce businesses grow, there will be higher demand for courier and delivery services. Hence, the courier companies will grow too.

Secondly, even the retail outlets hire couriers to deliver products to customers’ homes. Take for instance, Courts and IKEA. If you make a purchase there, you can opt for the delivery option where the product will be shipped to your home on your chosen date. This is normally for purchases of bulk items such as washing machines and tables.

Thirdly, there are instances where people need their deliveries carried out urgently. For example, the banking industry requires a lot of same-day deliveries to their clients. Sometimes, these deliveries may be two-way. This usually happens if the bank has a document that needs the client’s signature. After the client signed on the document, the document will be delivered back to the bank by the courier. As the cost of engaging the courier services is lower than the cost of the bankers delivering the items themselves, this outsource of logistics operations is justifiable.

In the foreseeable near future, I maintain this view that Singapore courier company will continue to grow at a modest pace due to the sustainability of this courier industry.

Conventional courier model versus uber-style courier model

By now, most people around the world must have heard of Uber, a mobile application to hail taxis. Operating in hundreds of countries, Uber is valued at billions of dollars. Its business model is very scalable and sustainable. On top of that, Uber basically disrupted the taxi industry in every country. The disruption is so powerful that some governments had to step in to restrict Uber from operating in their country to protect the domestics taxi industry.

Uber works by connecting a driver and a customer through its mobile application in real-time. Upon confirmation of booking, a driver will be assigned to the customer and picks up the customer at his location. The customer’s location will be pin-pointed via GPS. After pick up, the driver can rely on Uber’s map to head to the destination point. This ease of operations has provided convenience for both the driver and customers. Customers can expect much faster pick up and traveling time when they choose Uber taxis as compared to other taxis on the streets.

There are other such mobile applications developed for the courier industry. Similar to Uber, these mobile applications aim to match up a courier and a customer in real-time. Customers will submit a request for courier through its mobile application and a nearby courier will be assigned the job. The main advantage of using this mobile application is faster pick up and delivery speed.

Will this mobile application for couriers disrupt the courier industry like how Uber disrupted the taxi industry? It is unlikely.

The main reason being the perceived reliability of the delivery. Unlike sitting in a taxi where customers will witness the delivery of the service first-hand, customers feel unsecured to hand over their parcels to couriers via these mobile applications. One reason for this is the ease of courier application and little to no training given. Customers wanting to have their fragile items delivered will be more concerned about the training of the couriers. Customers will trust courier companies more than these third-party courier mobile applications.

Furthermore, many courier companies in Singapore such as pca masters have already developed or are in the process of developing their mobile applications which are similar to Uber application. The only difference is that the couriers in charge of those deliveries are all in-house. This will offer customers better reliability and security of trained couriers on top of the benefits that a mobile application can give. Unlike conventional taxi companies which fail to keep up with technology, courier companies are more responsive to technological changes.

Large Scale Logistics And Delivery Services

Enjoy the following explanatory and corporate video of DHL’s international supply chain and delivery services.

Perhaps you have seen the above or similar videos before. You would definitely realized that goods distribution (delivery) services is not actually as easy as it sounds. It can be a real logistical nightmare when there are so many moving parts and people all around the country (e.g. Singapore) or the world. Everything needs to be coordinated and properly planned out or all the delivery services may not be carried out efficiently and on time.

For our purpose, I shall explain the local courier services in Singapore when it comes to distribution of goods for E-commerce businesses.

1) Usually, a courier would be picking up all the goods to be delivered over the next 2 days from an E-commerce company’s address (e.g. office address or warehouse). These goods might then be stocked up in the courier company’s own offices or perhaps vehicles.

2) The next day or later the same day, the responsible deliverymen in that courier company would then plan out the deliveries of these goods and their routes.

3) After the planning of the routes around Singapore to most efficiently distribute and deliver the E-commerce goods, these deliverymen would then set out and start their day’s work. It is important that they plan well and fast and execute everything promptly. It is very easy to be late for deliveries – especially when you have a lot of them. Therefore, it is important for deliverymen to be responsible and punctual. Any deliveryman who is not a punctual person will sooner or later lose his or her job as a courier.

4) After the distribution of the E-commerce goods and completion of the delivery services, these courier or deliverymen would then need to report back to their companies about the statuses of these deliveries. Some of these deliveries might not have been completed successfully and would thus need to be re-delivered.