Key questions business owners should ask when choosing a delivery service provider

More than two years into the pandemic, even as brick-and-mortar shop fronts reopen, many customers have gotten used to online shopping and even prefer the convenience offered by e-commerce over in-store shopping for bulky purchases and other items. This shift in consumer preferences means the e-commerce boom will continue to enjoy a healthy growth outlook this year.

For most retailers, this could mean facing bottlenecks in logistics, especially in last-mile deliveries. While it is not uncommon for larger retailers to have their own fleet of delivery vehicles, SMEs typically do not have the resources to upkeep and maintain such a fleet. A reliable logistics partner is crucial.

But with so many options available, how are SMEs supposed to choose the right one? Here are four key questions to ask when choosing a logistics partner:

Q1: How can your logistics partner help you save on costs?

Obviously, every business owner is looking to save on costs. Pay attention to how a delivery service charges. Typically, logistics companies charge on a monthly or yearly basis, while others charge per delivery.

If your delivery volumes are low or fluctuate widely, it may be more cost-effective to pay per delivery. If your order volume is consistent throughout the year, an annual plan may be better.

If your company delivers a large variety of goods, take note whether a delivery service charges more for larger or heavier deliveries.

Q2: Does your logistics partner provide consistently reliable service?

Of course, while cost is always a concern, it should not come at the expense of customer confidence. There's no point in partnering with a low-cost delivery service if packages never reach the customer, reach the customer late, or arrive in poor condition. How many of you have had the experience of ordering a pizza - only to have it squashed when it arrived?

More than eight in 10 customers reported that they would not order from a retailer again after a poor shipping experience. A single bad experience is all it takes to lose a customer for life, so make sure you check a larger variety of sources - online forums, review aggregator sites, even word-of-mouth from other business owners - to verify a logistics company's reliability.

Q3: Does your logistics partner offer a wide range of services?

Most logistics providers fulfil a variety of different delivery needs, but if your business requires specific delivery methods - for instance, refrigerated or frozen goods, or large appliances - then it's important to make sure that your logistics provider of choice can cater to you specifically.

Furthermore, if a logistics provider offers more flexible services such as cash on delivery or flexible pickup locations, it offers a better customer experience, making repeat purchases more likely and helping to build brand loyalty.

Q4: Does your logistics partner allow you to easily track your orders?

Finally, how easy is it to manage delivery fulfilments? In this age of interconnectivity, business owners should be able to easily monitor the status of their package deliveries; whether a package has been delivered, whether it has been delayed, or where it is on the delivery route.

Lalamove Singapore: The one-stop solution

Lalamove, one of Singapore's leading on-demand delivery providers, is a logistics partner that provides a "Yes" to all of the above questions.

With over 55,000 partner drivers, Lalamove has made a name for itself with its capability to deliver to anywhere on the island within just 55 minutes, 24 hours a day, 7 days a week.

Its fleet ranges from motorcycles for small, fast and low-cost deliveries, to fully refrigerated 14-foot lorries for chilled goods, allowing clients to deliver whatever - and whenever - their customers need.

Simplified payment processes

Lalamove's payment model also eschews a monthly payment fee for a pay-per-use model. Prices are calculated per delivery and according to the total distance covered. More importantly, up to 19 deliveries can be combined into a single journey to save on costs.

Lalamove also offers unmatched convenience for clients by providing API integration. This allows clients to integrate Lalamove's app functionality with their own platforms, like monitoring items' delivery status, quoting delivery fees or placing and cancelling orders.

Efficient delivery management

The company has recently partnered with Shopify in October last year to develop an app that allows Shopify merchants to dispatch orders through Lalamove in just 10 seconds.

The app also lets merchants monitor delivery statuses, compile multiple orders into a single delivery, and even gives customers the option to pay directly for the delivery cost.

"For on-demand delivery, there isn't a platform that comes close to matching Lalamove's extensive fleet size, variety, speed and reliability," says Mr Alex Lin, managing director of Lalamove Singapore.

"Every day, thousands of merchants rely on Lalamove's fast on-demand delivery, extensive fleet size, and vehicle variety to fulfil their daily operations."