How the On-Demand Economy Impacts Logistics & Courier Delivery Sector

An on-demand economy concept has influenced our lifestyle for over a decade a decade. Most observers relate this concept with the introduction of the first iPhone in 2007 and the App Store in 2008. However, we can stretch it to the age when iTunes had made it possible for users to listen to their favorite songs. It was media consumption on demand!

Things have been changed a lot since then and we live in the pandemic era currently. Businesses strive to fulfill consumer’s demands by sending necessary goods and services at their doorsteps. The Internet comes handy for entrepreneurs in achieving this objective, and various industry sectors including retail, healthcare, hospitality, logistics, and courier delivery have integrated mobile apps in their systems to make the most of an on-demand economy.

Let’s take an example of the logistics and courier delivery sector to understand the impact of the on-demand economy.

How Does On-demand Economy Influence Logistics & Courier Delivery Sector?

As Statista has mentioned, home delivery is the most used method for delivering packages globally in the year 2019 as 66% of respondents have preferred this method. In this corona age, the percentage of people who prefer home delivery of parcels will certainly increase, and this trend is here to stay! With a 5.5 trillion Euro market size, the global logistics sector is thriving and the on-demand economy fuels its growth.

How the On-Demand Economy Impacts Logistics  and  Courier Delivery Sector

Source- Statista

The courier delivery app development is aimed at making the most of an on-demand economy for driving the logistics and courier delivery sector. An on-demand courier services app is useful for people in many ways ranging from finding a reliable courier services provider to tracking their parcels. Concepts like the last-mile logistics and the same-day delivery are successfully implemented by incorporating feature-rich apps in the on-demand economy.

Challenges like a lot of paperwork, ever-changing customer expectations, human errors, delays in delivery, and higher cost can be mitigated by on-demand courier delivery apps. Courier service providers can streamline the process and provide personalized services to their customers. Unlike the traditional way of courier booking and delivery, the on-demand courier services enable customers to book pick up online and get delivery of the parcel at the doorstep.

Let’s go through the key challenges faced by logistics and courier services providers and the role of on-demand services in mitigating them.

Major Challenges of Traditional Courier Delivery Model and Role of On-demand Apps

  • Lengthy and Complex Processes

Traditionally, the courier delivery model includes many third-party agencies that exchange information with one another. At times, it creates confusion among customers and makes the process cumbersome. Also, there is a risk of leaking out confidential information. Altogether, this is the first and foremost challenge for the logistics and courier delivery industry, and it should be dealt with innovatively.

One of the biggest benefits of the on-demand courier delivery app is that it can eliminate third-party agencies or mediators. It acts as a bridge between courier delivery service providers and customers. It is easy for customers to find top-notch service providers, book a parcel for delivery, select the time and date of pickup, and other related information anytime through an app. It makes the entire process swift and secure.

  • Delay in Delivery

In the traditional model, many times, either drivers fail to reach the destination on time or delivery persons fail to deliver couriers and parcels on time due to some unavoidable circumstances. This can cause great harm to the courier delivery business and therefore, it is imperative for service providers to choose an on-demand model.

On-time delivery of products and services is the major characteristic of an on-demand courier app. Courier services providers can easily provide time-bound deliveries of parcels at the customer’s doorstep while eliminating multiple third-party agencies.

  • Extensive Paperwork

Usually, the courier and logistics service providers have to maintain all the documents starting from booking to loading and managing to delivering products. This is quite lengthy and tiresome work. What’s more, there is a possibility of human errors in any of the stages while preparing necessary documents. The courier service providers and drivers also find it troublesome to access documents as and when they want.

The on-demand concept brings digitization in the courier delivery process and minimizes paperwork. It is easy to store and access any necessary information anytime and from anywhere thanks to the customized on-demand courier delivery app. Courier and logistics service providers can readily maintain and track all the records. The app can help service providers save time, effort, and money while streamlining processes.

  • Increased Cost

Traditionally, logistics service providers have to hire people for booking orders and accomplish other tasks like warehouse supervision and inventory management. At times, they have to reimburse for the delayed or wrong deliveries. This can significantly increase the cost of business and act as a big challenge for the courier and logistics industry.

On-demand logistics and courier apps, on the other hand, can facilitate service providers to bring automation in order booking and other processes. It is easy to maintain inventory, warehouse, and even supply chain with the help of a tailored on-demand app. Entrepreneurs can track their fleet and run their business with ease in a cost-effective way.

  • Changing Customer Expectations

Today, tech-savvy consumers want advanced features in courier booking. They expect fast, cost-effective, efficient delivery with convenience. The logistics and courier services providers need to either hire many people to meet the changing expectations of customers or adopt digitization.

With doorstep delivery, real-time tracking, and enhanced security, the on-demand concept can fulfill the customer’s expectations effectively. Consumers can track their orders in real-time and remain assured of on-time delivery at their doorsteps.

  • Poor Customer Support

The traditional courier and logistics model has a lot of paperwork and tedious processes that give less time to respond to the customer’s feedback. Even if the courier delivery services are online, a few service providers have not integrated feedback or review functionality on their websites. A poor customer feedback system emerges as a big challenge in today’s competitive edge.

The on-demand apps can have a review and rating feature along with a dedicated help desk. It can enable customers to leave their feedback along with the rating, and the courier delivery service providers can improve their services to offer a rich user experience.

Apart from mitigating these challenges, the on-demand app development services enable the courier and logistics sector to manage fleet, inventory, and warehouse efficiently. The courier delivery service providers can grab the opportunities to expand their business with the help of a customized app. Simply put, the on-demand courier delivery app can give a competitive edge to the courier and logistics industry.

Wrapping Up

Digitization and automation are the future of business. The on-demand concept has introduced these two aspects in almost all industry sectors, and the courier delivery sector is no exception! AI-enabled robots, drones, and autonomous trucks will rule the logistics domain in the coming years. We can also expect that blockchain will make the entire process safer through secure online transactions and advanced algorithms will bring dynamic route optimization for quicker delivery.

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Author: Robert Jackson

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