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How Does On Demand Impacts Logistics & Courier Management Sector?

By Shrikant Srivastava
July 3, 2020 8. min read
Last update on: July 15, 2020

A few years back, when I was shifting to Delhi with my family, I thought of connecting a local vendor and get all the items moved to our new location via a truck. After all, it would be a pain to transport all the luggages, furniture, and other items on our own. 

For around 2 days, I kept on meeting different vendors to get a good deal. And finally when I found one, I asked them to send the truck to my door at 9 am. However, the truck arrived at around 10 the next day, and that too after hundreds of calls at the office.

We helped in loading the truck and left for the train. Two days later, when we entered our new house, we found that the truck had not yet reached. We called the vendor to confirm, asked for the contact number of the truck’s driver, but all in vain. There was no trace of the truck.

It was two days later our truck arrived and revealed the accident and other issues it faced and apologized for not being able to contact.

Whenever I look back, I find it hard to not think, “What if we had no time to find and analyze different deals? What if the truck never arrived at our place?

Thanks to the introduction of the concept of On-demand in logistics and courier business, it is least possible to happen in the present time. 

Today, from finding a logistics and courier service provider to tracing the track, everything is possible in the real-time through an on demand logistics and courier services application. Something that has not solely indicated a wave of disruption in the logistics and courier sector, but also encouraged companies to look into how to start their own on-demand business and get a bigger slice of the market.

on demand logistics market forecast

Assuming you to be a logistics & courier service company who has either not witnessed the benefits of on-demand or is sitting on the fence regarding entering the market, I will be giving you a brief glimpse of the whole in this article.

But firstly, let’s ponder upon the challenges that made entrepreneurs embrace the idea of riding the uprising ‘Uber for X’ wave.

Challenges Faced by Traditional Logistics and Courier Service Industry

logistics and courier delivery challenges solved by on demand

1.  Cumbersome Processes

In the traditional logistics and courier business model, multiple third-party companies are participating such that they may or may not be interacting or exchanging information with each other. This often creates confusion about the participants and makes the process complicated and tiresome.

This marks the foremost challenge that demands innovation in the existing business environment.

2.  Changing Customer Expectations

With the rise of digital adoption in all walks of life, users are becoming more demanding. They are expecting faster, cheaper, and effective services in every aspect, which is again making logistics and courier service providers to bring their team on board and discuss how to meet their changing needs.

3.  Delayed Delivery

Many times, drivers fail to reach the destination or deliver couriers and other goods on time to the consumers due to government regulations, accidents, and other such situations. This again ruins the reputation of the existing business model and make it imperative for business leaders to explore the potential of On-demand and other such concepts.

4.  Lengthy Paperwork

Traditionally, all the documents – be it related to making a deal, loading goods, delivering products, or managing the maintenance expenses – are paper-based and quite lengthy. Because of this, it becomes nearly impossible for the business leaders and drivers to access them anytime and anywhere and accelerate the complete process. This, again, acts as a barrier in the development of the logistics and supply chain management segment.

5.  Higher Cost

Be it paying the toll tax, hiring new drivers, reimburse for the delayed delivery, coordinate with third-parties, or buy new tools to make a customer strategy, everythings adds to the cost associated with running a business; making it yet another challenge hindering the path to a successful venture.

6.  Poor Feedback System

Last but not least, the tiresome processes and huge amount of work have left workers with less time to check and respond to the feedback shared by the customers. In fact, not every online logistics company offers this service. Something that accounts for a poor feedback system to be another challenge faced by the logistics and parcel delivery service providers.

With this covered, let’s take stock of how on-demand helps logistics and courier economy in solving these challenges.

Benefits of going On-demand in Logistics and Courier Business

benefits of on demand in logistics courier business

1.  Convenience

The on-demand logistics apps have made it possible for consumers to come across the top service providers, book for a delivery, choose the pickup date, location, and much more – anytime and anywhere. This convenience has lifted the business and made consumers more interested in taking the services of the organizations involved with on-demand business model.

2.  Time Efficiency

By investing in on demand service app development, business leaders are able to provide high-end services to their target customers without involving multiple third-parties into the equation, asking for endless questions, as well as organize the inhouse processes and assign different assignments to their drivers in real-time. This saves time required and gives them enough space to focus on launching new products/services and so on.

3.  Cost Effectiveness

On-demand logistic applications have brought the customers directly in touch with the top service providers. They have eradicated the need for third-party agents and even streamlined the process, which has eventually aided in gathering more outcomes with minimum investment. 

Also, it has made it possible for the entrepreneurs to run their business without hiring new drivers or vehicles, which again adds to the profitability of the business.

hire us for profitable on demand logistics business

4.  Real-time Tracking

The biggest advantage of considering on-demand in courier delivery and logistics business is real-time tracking. As the name suggests, this functionality enables consumers as well as business leaders to track the vehicles (or fleets) in real-time. While this assures consumers about the courier delivery, it aids companies to see how to optimize the process and grab better opportunities in the marketplace.

5.  Minimum Paperwork

By launching an on-demand mobile application, it has become much easier for the companies to store every single piece of information about the products, drivers, vehicles, and other associated entities and maintain the record in real-time. Something that has eventually been helping in saving time, efforts and making the ecosystem streamlined and profitable.

6.   Enhanced Security

The real-time tracking, better optimization of processes and other such factors also help the logistics and supply chain management companies in ensuring high-end data security into the ecosystem. This aids in building a trust between customers and service vendors as well as bring more profits into the environment.

7.  Ease of Warehouse Management

The process of warehousing has always been challenging for the logistics and courier service providers. 

However, with the inception of on-demand in the industry, it has turned out to be an effortless and time-saving process since the application gives you detailed information around where the searched product is stored, what’s the status of the warehouse, and more – all with a single tap.

8.  Smoother Supply Chain Management

Not just in the case of managing a warehouse or making a courier delivery, the on-demand logistics applications have also brought a major difference in the supply chain process.

The applications have eased the process of tracking the goods while moving from one process to the next, check for the fraud cases, make effective communication across the teams, and much more.

9.  Effective Fleet Management

Traditionally, it was quite tough for the logistics and parcel delivery companies to keep a track of every single vehicle they have, the routes they have travelled, the number of deliveries made, the license expiry date, and much more.

However, with the advent of on demand mobility solutions, this has become much easier, quicker and efficient.

10.  Better Inventory Management

Right from checking the availability of any particular good in the warehouse to detecting any discrepancies, malfunctioning of any machine, and more, the on demand logistics mobile applications have made the inventory management process more streamlined and seamless than ever before.

11.  Improved User Experience

Unlike earlier when users were supposed to meet multiple agents and stand in long queues to get a perfect deal for them, the on-demand applications have made it possible for them to come across the top service providers and make a booking with a few taps on their smartphones. 

Also, the apps have offered them the opportunity to track their orders in real-time, communicate with the associated driver, direct them for a faster delivery, change the delivery address and date, and much more. Something that has indicated a better user experience. 

12.  Business Expansion

Lastly, the inception of the On-demand concept in this industry has opened a new set of opportunities for the businesses. It has encouraged them to look beyond their premises and see what and how introducing new technologies into their business process can enhance their productivity and profitability.

scale up your logistics courier business with us

Because of such benefits, various entrepreneurs have already started consulting a reputed on demand mobile app development company and refer on demand mobile app development guides to get familiar with trending statistics, cost to develop a logistic app, business and revenue model to prefer, and determine why on-demand platforms fail. And this way,  enter the league of top on-demand logistics and courier services brands. A few of which are –

top logistics courier service providers

Now, while this information is valid to invest in on-demand software development and start your own logistics and courier service startup, it is good to uncover the future trends and prepare for a successful future ahead. 

So, let’s take a stock of future on-demand logistics and courier trends.

Future Predictions to Consider While Entering On-demand Logistics & Courier Industry

future trends in on demand logistics courier business

1.  Self-Driving Trucks

Autonomous trucks and vehicles is one of the most discussed logistics tech trends of the time. This technology will bridge the gap between the number of drivers on duty and the increasing demands for delivery services. Also, they will come to the rescue in the case of maintenance issues and help with taking other fleets/products to the warehouse when met with an accident or any other calamity.

2.  AI-enabled Robots

AI-powered robots are again going to make a huge difference in the logistics and courier service businesses. They will not just improve the customer experience, but also speed up the processes, offer more convenience, enhance route planning process, and more. Which will ultimately make it possible to delight the targeted user base with minimum efforts.

3.  Drones

As you might have already seen in the case of Austrian Airlines and Amazon, drones will accelerate the delivery process, document damage outside of the aircraft, and free up the workload of technicians and later, lower down the maintenance cost.

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4.  Advanced Delivery Algorithms

Advanced delivery algorithms are also anticipated to leave a remarkable impact on the on-demand logistics and courier services business environment.

It will introduce the power of task-order matching, geo-analytics, and dynamic route optimization into the market, which will lead to improving efficiency at work, and so is the productivity. 

What’s more, it will enable customers to automate their whole delivery chain.

5.  Blockchain

The use of Blockchain in Supply chain management is also one of the trends that will aid the service providers in ripening higher benefits.

Right from securely validating document transactions to improving compliances, monitoring freet capacity in real-time, identifying fraud risk, issuing smart contracts, and monitoring performance, the technology is adding value to the logistics and courier services economy.

walmart's journey in the world of blockchain

6.  Digital Twins

Digital Twins is yet another trend that will reshape the logistics and parcel delivery service market in the coming years. 

The technology, with its potential to create a digital replication of any physical entity, enables service providers to collect product and packaging data and employ the information to detect potential weaknesses and recurring trends to enhance the future operations. It will also enable them to make accurate 3D models of their centers and experiment with the layout changes or launch of a new equipment to record the impact in a risk-free manner.

Furthermore, it will assist them to test different scenarios, increase work efficiency, improve delivery times, and aid self-driving cars in getting familiar with their routes.

7.  AR/VR

As already mentioned in our article around AR benefits for Businesses, the technology empowers workers to detect the location of any object using the virtual labels added to the object, view the 3D image of the products, and get real-time access to navigation information. This eventually simplifies the processes, saves time, as well as reduces fatigue.

Likewise VR technology, when incorporated into driver and freight management systems, provides companies with the functionality to track them in real-time, reschedule the tasks, and optimize the process efficiency to a greater extent.

Now, as you have gone through the trends and predictions that are expected to change the landscape of logistics and courier services industry, it is likely that you are ready to improvise your existing business processes. Which further indicates that you are up for hiring an On demand app development company and enjoy better opportunities and profits.

So, do not waste a single minute. Look ahead to contact our on-demand experts today! Discuss your idea with our team and also, feel free to disclose your challenges and get a customized mobility solution.

Shrikant Srivastava
Shrikant Srivastava
VP Technology
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