Businesses which include a distribution and delivery service to their product package do so in order to expand their reach, meet customer’s perceived and communicated needs, and (by accomplishing these) increase revenue. There is also the factor of gaining competitive advantage. In Nigeria, the potential for expanding market share by taking care of physical transportation needs at a cost is great. Little wonder firms are increasingly including this as part of their business model. However, such a step should not be taken without detailed analysis of costs to be incurred and benefits derivable. It is only sensible that decisions be reached based on adequate knowledge of available resources, the significance of possible gains, and the overall effect of such plans on the business’s ultimate direction.
Delivery services, if needed, should be tailor-made to suit the type of business and product for which they are required. In order to ensure the viability of a delivery service as part of your business model, the following steps should be taken:
- Outline the steps required in distributing and delivering your product or service.
- Define the extent of the geographical area you want to cover.
- Estimate the cost associated with each step and material required in the delivery process.
- If you intend to work with delivery companies, clearly define the relationships and agreements you plan to forge with them.
- Make contingency plans for cases of the disruption of distribution and delivery services.
If upon examining the results of measures 1-3, it is discovered that resources available are not sufficient to cater for the execution of these plans, it may be decided that a distribution service is not appropriate at the moment. But all possible options should be explored; this is why a detailed description of the sort of delivery service intended to be delivered is necessary.
Following a decision in favour of delivering products to customers, the mode of operation should be laid out. Prominently advertising this service as part of a business is key; so are setting clear and transparent charging policies, offering customers a range of delivery options, allowing customers to track orders in progress, as well as adding extra perks to this service, such as thank-you gifts. Bulk discounts may be negotiated, and promos are not out of order, especially for the major holiday seasons. Customer relations is crucial. No plan of this sort is complete without it.
Outsourcing should be considered for delivering products if it is found to be more economical, or as a backup plan where there is a failure of the business’s own delivery service.