Running a local delivery business is vital work and is just as important as larger delivery services. You work closely with local merchants and smaller businesses to deliver goods and help them stay competitive against bigger retailers. During the pandemic, local delivery businesses were essential to keeping small and medium-sized businesses afloat.
Yet, running a local delivery business is no easy feat. If you are in the delivery and logistics industry, you will have undoubtedly endured your fair share of hectic days. Those days are when it becomes difficult to juggle drivers, guide dispatchers on necessary delivery details, and answer client calls, often all simultaneously. While some people may find the frenziness exciting, it also keeps you away from thinking strategically about your business.
4 Keys to running a better local delivery business
By following these four fundamental guidelines, you can run a better organised and more profitable delivery business.
1. Ensure you are equipped with a robust system to streamline delivery options and better manage deliveries.
Everyone in the local pickup and delivery business has their horror stories of being inundated with customer requests and deliveries. You can avoid this by implementing the right systems. Without these systems in place, lines of communication can get crossed, wasting valuable time and adversely impacting your business.
Implementing courier management software lets you track deliveries, view driver schedules, and dispatch new jobs to drivers all in one place, eliminating the need for error-ridden spreadsheets, hours and hours of manual labour, and thousands of phone calls. It streamlines and fastens the entire process, giving delivery managers the clarity needed for critical logistics operations.
2. Getting your pricing right
As with any business, you need to ensure your pricing reflects the service you are providing. Knowing your competitor’s pricing and service levels would be beneficial when choosing a pricing strategy to accurately set and maintain profitability goals.
While setting higher prices can be advantageous if you can show customers your unique benefits and advantages, you must come up with the goods. Most customers, though, want attentive drivers and on-time deliveries. Deliver that, and your customers will be happy.
It is also worth noting that different delivery jobs require additional features, and your pricing should reflect that. For instance, you might charge less for eCommerce B2C customers than B2B clients based on the ability to collect tips through the driver’s mobile application.
3. Ensuring exceptional customer service
It may have once been enough for brands to offer five-day delivery or in-store collection; today’s customers expect fast, convenient, and seamless omnichannel experiences, whether same-day or next-day delivery or a variety of other services.
Beyond ensuring that your drivers keep a clean vehicle and behave professionally, maintaining clear lines of communication with the customer should be your top priority. This may be as simple as answering the phone quickly, dispatching a driver as soon as possible, or keeping customers updated on the arrival of their delivery. A quick response time is now the primary difference between good and bad service.
4. Value Your Employees
While it may sound obvious, your delivery business needs reliable employees to operate and scale, so your competition does not swoop in and scoop up your best drivers.
Building a top-performing team and employee retention are essential elements of any successful business. It would help if you focused on creating a great work atmosphere and keeping a thumb on the pulse of what is happening within your team.
Today, businesses focus far too much on data rather than on the people working for them. Spend time with your team and ask them how they are doing once in a while. Appreciation goes a long way.
Why your business needs a delivery management solution
Why Your Local Delivery Business Needs a Delivery Management Solution
Customer expectations are evolving rapidly—today’s buyers want same-day delivery, real-time tracking, and hassle-free returns. Competing with larger couriers can feel overwhelming, but the right delivery management software levels the playing field for local businesses.
Here’s how a smart platform like InstaDispatch can transform your operations:
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End-to-End Visibility in Real Time
Track every order, driver, and route on a single dashboard. No more blind spots or chasing updates over phone calls. -
Smarter Route Optimization
Save fuel and time with AI-powered routing that reduces unnecessary miles while ensuring on-time deliveries. -
Seamless Multi-Drop & Contactless Deliveries
Perfect for eCommerce and food businesses, enabling you to complete more stops in less time while keeping deliveries safe and efficient. -
Customer-First Experience
From instant SMS/email updates to live driver tracking links, your customers always know where their delivery is—building trust and loyalty. -
Scalability During Peak Seasons
Whether it’s a festive shopping rush or sudden demand spikes, scale up your deliveries effortlessly without hiring extra staff.
