Finding the Right Outsource Company for Shipping and Delivery

If you have a retail business that provides delivery service, should you consider outsourcing home deliveries? When retailers select the right company, outsourcing home deliveries can enhance a business' reputation and possibly increase business. If they select the wrong company, it can lead to unhappy customers and brand their business with a reputation of poor customer service.

Before you select a delivery company, ask yourself the following questions:

1. What are my goals?
If your goal is to contain costs and reduce overhead, a delivery company may be right for you. You wouldn't have to pay delivery drivers, purchase and maintain your trucks or buy insurance for this aspect of your business. Remember, however, that the last impression your customer has of you is your delivery service. Your truck is a mobile billboard, and if you give up your trucks, you lose that advertising niche.

2. What services do I want to outsource?
If you have a home electronics store, for example, are all deliveries from manufacturers going to be drop shipped to the delivery company? Are the deliveries going to be sent to your store or warehouse? You need answers to these questions before you commit to a delivery service. Some delivery companies provide driver teams, on-site management or trucks only. Many of these services have one distribution center where merchandise from many different retailers is sent. Other delivery services manage the inventory, schedule deliveries and provide the customer service.

3. What kind of technology and trucks does the company use?
Find out the condition of the delivery services’ trucks. Are they somewhat new, or do they look run-down? Do the drivers wear uniforms and look professional? Ask if the drivers could wear your logo on their shirts. Also, inquire about what kind of technology the delivery company has. Does it do web tracking, Internet customer satisfaction surveys or inventory management?

4. Who does the company hire?
You'll also need to know what kind of background check the company does on its drivers and employees. Ask about driver education programs available for the drivers. Finding out the safety record of the company is important as well. Does the company have a safety program or a safety director, for instance? Be sure to ask to see accident records and find out what kind of insurance coverage the company has.

5. What is the company’s expertise?
Do a background check on the company and find out how long it has been in business. Also, ask for a list of customers. Be sure to call a few of them to find out if they had any problems with the company. Ask what they liked best about the company.

6. Do I have a detailed contract?
Be sure your contract spells out when the carrier will begin delivering for you. You should also include a termination clause and note the insurance requirement the company must have to keep your business. The company’s policies must coincide with your objectives.

Once the contract looks exactly like you want, have your company attorney take a final look to catch any oversights.