Should you engage a courier company or hire a deliveryman?
As a small-medium business owner, should you work with a courier company for your company’s deliveries to business partners (e.g. regular business deliveries) and to customers (e.g. for E-commerce businesses and websites) or should you hire a deliveryman in house? There are pros and cons to each of them, and generally, working with a Singapore courier company is a better idea financially and for your business’s operations.
Pros of a courier company:
- They are experienced and have many drivers. This means that your delivery would always be able to be conducted.
- A good company would also able to conduct pick ups. This means that you don’t even need to travel down to their warehouse or office to deliver goods – that will be really convenient for you.
Cons of a courier company:
- If you work with a bad courier company, their deliverymen may not treat your parcels with respect.
Pros of hiring a deliveryman:
- You have more controls over which deliveries get sent first. This is because you can plan out their exact schedule while the schedule for an outsourced courier company is usually decided by them (although they would still adhere to your time slot delivery limits)
Cons of hiring a deliveryman:
- Can be really expensive for small medium enterprises (SME) in Singapore. This is because their base pay is at least $1,500 to $2,000 per month and this does not include the vehicle leasing and petrol costs. If you were to include them, it would only be feasible and financially sensible to hire a deliveryman if you have very high volumes of deliveries per month.
Final verdict (How to decide whether you should engage a courier company or hire a deliveryman):
If an average courier delivery in Singapore is around $8 (average of $6 to 10), then you can get the courier company to deliver over 250 deliveries per month for the equivalent of 1 single deliveryman (average salary of $2,000 / month). This is not even inclusive of petrol and vehicle leasing costs. Therefore, it would only make sense to hire just 1 deliveryman if your business has over 400 to 500 deliveries per month. Otherwise, it makes no sense to do so. It is definitely better for your company to register a credit account with a Singapore courier company and work with them.