10 Logistical Considerations Of Managing A Delivery Business You Should Know About

Managing a delivery business can be an incredibly rewarding job, but it’s far from easy. You’re constantly spinning plates in this role, and one slip-up can mean a significant drop in revenue. 

If you’re just starting or are thinking of heading into this arena, it’s a good idea to brush up on basic logistics, and this article is here to help you with that. Here are ten logistical considerations of managing a delivery business you should know about! 

1. The Importance of Route Optimization 

When it comes to running a delivery business, route optimization is everything. This is one of the biggest determiners for the amount of money the business makes, as it’s a key consideration for customer satisfaction, fuel economy, and efficiency.  

The usage of route optimization software is a must. These sorts of packages allow you to oversee the entire operation, observing where each vehicle is in real time and how quickly they’re going to make it to their destination on the specified route. 

2. Managing Delivery Vehicles 

Of course, just as important as route optimization are the vehicles themselves. Depending on the sort of business you’re running, this could be anything from small bikes to major fleets, and each type needs to be managed differently.

Bikes are the cheapest option with excellent fuel economy, but they also don’t have the ability to hold as much merchandise. On the other end of the spectrum, large fleets are the go-to for serious delivery projects, but they’re also the most expensive to run (fleet fuel credit cards help manage the cost here). 

It’s also essential to monitor each vehicle's progress and be hot off the mark with maintenance (many garages offer deals for servicing multiple vehicles).  

3. Inventory Management 

Back at base, one of the most critical aspects of this whole operation is inventory management. 

This area of the business comprises many different elements, but in general, you’ll need to prioritize proper organization amongst the staff to be sure all products are stored correctly and safely. 

You should also invest in inventory management software to help you get the job done quickly and with fewer errors. There are plenty of programs out there that can take a detailed stock of your entire inventory, giving you clear insight into what’s going out and what’s going in, and in what quantities. 

4. Your Drivers

A flash fleet is nothing without competent, dedicated drivers, and finding them isn’t as easy as you might think.  

They’ll need to be trained thoroughly in the specific area of service you need them for, and you should always ensure they have a great track record of previous driving jobs so that you know they’re reliable. 

5. Telematics  

Telematics is an essential part of monitoring your driver’s movements while out on the road. Where route optimization software focuses on that one specific area, telematics drills into the details; dedicated software can show you the speed each vehicle is traveling at, how long they’re spending idling, when a service is due, and other matters pertaining to vehicle health.  

This sort of insight offers the potential to save in small areas that each add up to make for one much larger saving.   

6. Understanding Scalability 

Scalability should be a major focus as a delivery business manager. You should always be looking for ways of expanding your operation, as delivery services are ripe for this sort of growth.  

You can strive to extend further to reach more people, and in some cases, you may actually be forced to if you experience growth at an exponential rate. How you do this will be entirely individual to your circumstance, but don’t let it creep up on you – make sure you’re consistently brainstorming. 

7. Rules and Regulations 

Running a delivery business isn’t as simple as just buying a fleet of vans and setting off. There are many different rules and regulations in place that you’ll need to abide by.  

The expectations will depend on what country or state you’re operating in, but pertain to aspects like emissions standards, vehicle weight, delivery restrictions, and more. Be sure to investigate all local and governmental stipulations before you begin operating. 

8. Day-to-Day Running 

Beyond the logistics involving your vehicles and inventory, there are many other smaller aspects that you’ll need to optimize to perform your best.  

You can use an array of different types of software to help you. One of the most important is a CRM (customer relationship management) platform. This is a one-stop solution for organizing your dealings with every customer that comes through your doors, from a database to store all contact information and addresses, to managing promotional newsletters to send out.  

There are also other solutions for automating billing, barcode scanning, and the whole gamut of administrative tasks.  

9. Risk Management

Driving is inherently risky business, and when you’ve got multiple vehicles on the road at once, that risk naturally multiplies. Whether you’re talking about minor accidents, delivery theft, or something else, there’s a lot to go wrong, so you need to make sure you have clear insurance policies in place to help mitigate the risk. 

When you’re aiming to utilize several policies at once, insurers will usually offer special deals, so be sure to discuss your needs thoroughly with your providers.  

10. The Importance of Sustainability  

And finally, there’s sustainability to consider. Depending on the size of the business, even a local delivery operation can place a significant strain on the environment, so it’s key to use fuel-optimized vehicles and have drivers spend as little time idling as possible.  

Of course, on a secondary note, this will also make you look more appealing to your customers. 

Wrapping Up 

If you thrive in an environment that’s fast-paced and requires adherence to tight deadlines, you’re certainly in the right career. Running a delivery business is certainly a lot of work, but once you get the hang of things, you’ll have it operating like clockwork. Hopefully, the above logistical considerations have given you some food for thought on how you’ll make your service the best in town!