At the heart of every business beyond the quality of products and services, is its ability to smoothly deliver these offerings to its waiting customers. Small Medium Enterprises (SMEs) in particular, will want to do this well. In Singapore alone, SMEs make up 99% of the enterprises and contribute to nearly half of Singapore’s gross domestic product.
For them to succeed amidst greater challenges like supply chain disruptions, and a high-interest rate environment, SMEs will need to balance their customers’ experience and expectations with cost-effectiveness and scalability in fulfilling orders even during peak times. Additionally, another challenge for businesses lies in securing a suitable on-demand delivery service equipped with a diverse fleet of vehicles to meet their comprehensive logistics requirements.
Embracing efficiency and scalability by rethinking delivery models
In today’s world where everything is just a click away, there’s a growing demand for faster, seamless, and efficient delivery service across every industry. From ride-sharing to the convenience of telemedicine, the rise of on-demand services has dramatically changed the way we interact with goods and services.
In the early stages of offering delivery services, most businesses pursue an in-house model, but that can be filled with unexpected hurdles. Having to adapt and change could lead to frequent process evaluations, but even minor adjustments in procedures can lead to major disruptions to the overall business and operations. For smaller businesses, managing this delicate balance is an even more challenging feat to sustain.
This is where on-demand delivery services could be the option for businesses to offer a better experience for their customers. Testament to this fact is that over one-third of buyers are willing to opt for services that provide on-demand domestic delivery so that they can be served faster, and businesses understand this; 74% of users on logistics provider Lalamove opt for on-demand services, with up to 82% preference for two-wheeler services.
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Letting the experts deliver the results for you
Tapping on a third-party on-demand delivery platform allows the business to refocus on its core products and services, such that customer satisfaction, retention and business growth are supported and enabled by logistics with an expert partner.
Consider the case of telehealth platforms that emerged as a necessity, especially during the pandemic. During COVID-19, the need for swift prescription deliveries emerged. Relying on their own fleet of motorcycles in the beginning, meant they had to limit the number of patients seen per day to ensure delivery was kept efficient. Leveraging on-demand delivery enabled such organisations to shorten their turnaround time and attend to more patients, but more importantly, it also allowed the company to concentrate on its expansion.
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In the case of AFTERSHOCK PCs, a well-known Singaporean custom PC specialist company, last-mile delivery is critical to the business. One of the company’s competitive advantages was the ability to offer same-day delivery, so a dependable logistical partner was essential. Recalling the pandemic, they saw orders going up by 30% in that year alone. With the right delivery solution, the company’s on-demand delivery order volume has grown by 62% year-on-year.
Third-party providers do more than benefit growing startups, as established players like Prime Supermarket have also reaped the benefits. Instead of hiring and investing in new vehicles, they harnessed the power of Customised Delivery Solutions, which allowed them to utilise a fleet of vehicles, while at the same time, relieving their teams from the burden of fleet management.
The proof of their success is reflected in the tangible numbers. Prime Supermarket saw a surge in both their B2C and B2B orders by leveraging the right platform for deliveries. Their B2B segment, in particular, showed an increase of more than 10 times in delivery volume per week. This surge underscores the palpable impact of adopting the right logistics partner.
Technology, your right business partner
Partnering with experts to handle third-party logistics allows access to experts, but above everything else, also means access to proprietary technology and dedicated teams to assist and execute all deliveries.
This means a business can leverage technology that is already fine-tuned for the purpose it serves and can also be personalised even further to fit every business need. Whether the company is a big online retail store or is heavily into e-commerce, Application Programming Interface (API), allows for seamless integration with existing systems so orders are placed on-demand automatically.
This technology enables a host of features to ensure the smoothest of journeys, such as real-time order tracking which sends notifications when drop-offs are made, and also provides driver location updates. This provides ease of mind to business owners who will know when their customers are due to receive their deliveries, and minimises the hassle of misplaced goods and constant follow-ups.
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It also allows for fast driver matching with a wide variety of delivery vehicles available, from sedans to vans and lorries available on demand. Businesses can also place multiple orders to several locations, while the technology optimises the route to cover the shortest distance for the entire order, to make the order more economical and efficient.
Smaller businesses, like a local durian shop or neighbourhood pet store, can also tap into the advantages of this proprietary technology by using the on-demand service themselves. This alleviates the need for any business to worry about route checking and navigation, handling the delivery process or fleet management, as the third-party logistics platform takes care of everything from pick-up to delivery right to the doorstep of your customers.
This is crucial, as In the consumer’s eyes, it’s not just about delivery, it’s about the seamless journey from business to doorstep. Doing this well empowers businesses to thrive and meet the ever-growing demands and needs of their customers. Especially as customer satisfaction and business growth take centre stage, entrusting delivery to experts isn't just a smart move; it's a strategic one.
Alex Lin is the managing director of Lalamove
