There are lots of experts on this topic, and here’s why you should not be listening to any of them unless they’ve actually done it, and done it both ways before. If a business owner or executive has not tried both, how would they know in reality, which is better? I, however, have used both in house deliveries as well as outsourced my deliveries of goods to an outside courier company, and have found that each brings their own advantages and disadvantages. Here are some of the common ones, and then I will share with you my final verdict below.
Doing it in house – Having your own deliveryman is very useful and you would also be able to get him or her to wear your company’s T shirt. I think this is great for branding purposes. Additionally, if you have extremely high volumes for delivery, you would still need to pay only a fixed amount per month to your deliveryman. The main downside is that if your delivery volume fluctuates greatly, and you’re unable to predict how many deliveries you require, then you might be making losses on certain months or days because you’re not even covering the costs of your deliveryman’s salary and expenses. Additionally, if he or she takes leave, you’re left with nobody to help you out with the deliveries (this is especially true for smaller businesses with only a few employees in the company with thin margins). You would then need to deliver the items yourself as you’re unable to hire another replacement just for 1 day or 2 days.
Outsourcing it – First of all, you get rid of all the human resources hassles required with hiring your own extra employee, including leave planning e.t.c. Second of all, if you do not have a stable delivery volume or are unable to predict your goods courier volume, then you would not be stuck with a fixed salary cost, and instead leverage on the strength of a local courier company instead! However outsourcing, similarly as hiring in house, also comes with disadvantages. First of all, you would not be able to get them to brand your company by wearing your company’s Tshirt. Second of all, costs MAY be higher if your delivery volume is high as it’s variable costs only when you engage a courier company in Singapore.
Finally, here’s my verdict: If you can predict exactly how much volume you’re going to need on a monthly basis very accurately, and you’re ok with handling human resource issues, then hire a deliveryman in house. If you prefer no hassles and time dwelling on these unnecessary stuff, then outsource your deliveries to a courier company in Singapore (if you need a referral, try https://www.linkedin.com/company/pca-masters-pte-ltd). It’s that simple.