The challenges facing logistics companies

While overall parcel shipments have exploded over the last few years primarily due to e-commerce adoption, the challenge for any logistics company has always been to remain profitable, even when there seems to be more than enough business opportunities available.

A recent report by Capgemini points out the top reasons that keep you up at night if your daily bread and butter is a logistics related business. While some of these concerns revolve around “been around since the beginning of time” pain points, others look at the difficulties of incorporating new technologies while sustaining or growing the bottom line.

The team here at Parcel Port is focused on working with you to develop solutions that check all the boxes and help you deliver an improved end user experience. Something, to be frank, many logistics company need help on.

1.    Fuel costs: It’s no secret that fuel prices are generally going nowhere but up, ultimately forcing you to add extra surcharges to your billings to compensate. However, there’s increased pressure by your customers to keep prices the same as they were the year previous. How, in a very competitive market, can you absorb these costs while at the same time providing a level of service that your customers have come to expect? Volumes are up, fuel costs are up but your customers are asking you to keep your comp pricing flat.

Parcel Port has the solution!  By using one of our Smart Parcel Lockers you can deliver all of your parcels to one location instead of visiting each address separately. This makes even more sense when you’re delivering to urban areas where congestion increases delivery times and the amount of fuel you’re burning up while sitting in traffic.

2.    Decreased delivery times: It’s estimated that by 2020, 40% of all logistics companies will offer 2 hour delivery times in urban areas. Again, given the costs and process inefficiencies of last mile deliveries, offering up faster fulfilment times will definitely put a strain on resources and technology.

Parcel Port has the answer. Our consumer facing Smart Parcel Lockers are located in and around urban areas giving your drivers 24/7 access to drop off consumer orders quickly and conveniently.

3.    Increasing customer Service: It’s no secret that the consumer is a fickle beast. You have a high customer satisfaction rating, you deliver at over 95% of your transit time estimates on consumer facing shipments but all it takes is a few missteps and the consumer is on social media doing damage to your brand and reputation. It’s an impossible task to please everyone all the time given there are so many variables that can affect promised delivery dates.

At Parcel Port we take care of the end user communication. Once your driver has delivered a parcel to one of our Smart Parcel Lockers, we take it from there. We inform the customer via text and email, store their parcel in our monitored, secure metal lockers and ultimately handle all aspects of the parcel pick up.

The research we’ve done to date indicates that an overwhelming percentage of consumers prefer the convenience of a speedy pickup at a handy location at any time they want. Having these types of options available to the end user will only serve to make you look good.

In the end, as our industry grows and transforms with the demands of the consumer, the companies that will truly prosper are those that can embrace change while managing to drive bottom line profit.

As you’ve read, working with us here at Parcel Port can help you get there.

Thanks for reading,

The Parcel Port team.