Tag Archives: in house

Should Your Company Outsource To A Courier Company Or Hire Own Dispatch?

Hiring a full time staff or outsourcing to a courier company is a common question that business owners ask themselves and their top executives. This is the reason being that in the past, few companies in Singapore offered such services to other companies. However for the last 10 to 15 years, many accounting, courier, and business to business services companies have popped up, serving the needs of businesses usually more effectively than any in house employee can perform. This is because these companies specialize in that one job function, and are able to have much more experience doing it as well as economies of scale.

If you want to hire a full time dispatch rider in Singapore, you need to pay them at least around $1500 and when you add up all the workman compensation, CPF contributions, transport allowance along with any administrative costs, it will be around $2000. Unless you have over 150 to 200 deliveries a month, there is simply more economies of scale by engaging a dedicated courier company. This is because most local urgent or same day courier services cost between $10 to $25 per location. Witht that being said, even if you have 10 deliveries per working day in Singapore, which is about 200 deliveries a month, you would only incur around $1000 to $2500 if you had engaged a courier company. Not only would you either save money, you would have saved a lot of effort and time otherwise needed to be spent on conducting administrative and human resource related work!

However, of course, it is not without cons. Hiring a courier company can and will make your life easier – provided you pick the right firm to work with. Just like hiring a dispatch rider, picking the wrong company to partner with in Singapore would be disastrous. This is the reason why some good courier companies in Singapore like https://plus.google.com/+PCAMastersSingapore/ publicly reveal their reviews as they’re as good as they claim they are, and they also allow for trial credit periods. If you like it, continue, if you don’t, stop using them at no additional cost.

Working with the right courier company can be a great delight, as I have for my businesses. I simply outsource it. However, I must also warn you to take this matter seriously, and treat the courier company’s responsibility, accountability and responsiveness as far more important criteria than any other thing. I have seen people lose items due to irresponsible couriers or worry incessantly by picking a cheap courier only to realize they never deliver on their promises.