Should we use our own courier or someone else's?

If your business requires delivery services and courier services, it's better to know more about the various processes in this branch of your business. One of the important parameters for choosing your delivery system is the size of your business. Delivery by Organizations is done in two ways: Insource (within the organization) and Outsource (outside the organization), and you can read more about each and their differences below.

Within the Organization

Although outsourcing systems were more common in the past, over time and with companies' inclination towards innovation, the desire for localization and creating a branch within the organization to handle this mission increased. In this method, companies hire individuals specifically for delivery services to manage deliveries, control goods, and shipments internally, under their supervision, and at lower wages. The internal delivery method, or Insource, can be very useful in increasing speed, reducing transportation costs, and improving the quality and delivery of goods when your business is in intense competition.

Outside the Organization

This method can be considered as outsourcing the delivery and order activities of the organization. Outsourcing is applicable when a company decides to focus more on its main task and service by outsourcing its delivery services to a person or organization specialized in this field and using third-party couriers and fleets.

Which of these two methods is better for your business?

Your business might still be in its early days and unable to bear additional responsibilities; in this case, the best option for you is outsourcing and using external resources. Other types of businesses that might use the external outsourcing system are those with low capacity for transportation and delivery services; for example, consider a small supermarket that only needs one or two couriers for its orders and can use a startup providing these services instead of monthly hiring costs. In contrast to these types of businesses, there are large businesses with advanced organizational structures or businesses that require many field forces (such as magazines or food distribution organizations). In this case, the Insource method is much better for them; because if these tasks are controlled by the organization itself, many unnecessary costs such as additional wages for services and more control over the fleet are reduced. Other advantages of the internal method for large organizations include increased quality control, better communication, better understanding of the order delivery process, and consequently better support and services for the customers of these types of organizations. The good news is that businesses using their internal system for order delivery can best monitor their workforce's performance using the "Logiico Fleet Management Software" and be informed of every detail such as route, movement method, success, and failure of deliveries, and more.