How Local SMEs Can Compete with E-Commerce Giants by Outsourcing Fulfillment

How can local SMEs optimise their operations to remain competitive as e-commerce giants such as Amazon, Shein and Temu enter the market?

“By outsourcing order fulfillment services,” says Damian Velayadum, CFO of Fastway Couriers Group.

“Many global e-commerce players use local delivery partners. This means that South African SMEs have access to the same market-leading services that larger companies enjoy – rather than being offered exclusively to large companies.”

What is probably less well known is that courier companies offer more than just a final knock on a customer’s door to deliver a parcel.

Logistics service providers offer comprehensive support throughout the value chain, taking care of everything from order receiving and processing, warehousing, inventory management, picking and packing, shipping and returns handling.

This comprehensive service is an essential part of business operations, offering companies significant cost savings and efficiency gains.

Here’s how:

Cost efficiency and resource allocation

Reducing operating costs is always a good place to start. Maintaining a fleet and delivery vehicles, hiring drivers, and managing logistics are all costs for a company. Outsourcing last-mile delivery can significantly reduce these costs.

Focusing on core competencies is important. By delegating other responsibilities, such as delivery, an SME can focus its resources on core business activities, such as product development, marketing, and customer service.

Increased speed and reliability of deliveries

By outsourcing last-mile delivery, SMEs can quickly scale up their delivery operations without having to make significant capital investments in logistics infrastructure.

The benefit of using the services of professional courier companies is access to their expertise, infrastructure and technology, which allows for faster and more reliable deliveries.

“You can benefit from advanced logistics software that optimizes delivery routes, reduces fuel consumption and minimizes delivery times,” Velayadum says.

Improving customer satisfaction

Delivering shipments to their destination on time and consistently doing so is an integral aspect of the logistics industry, contributing to overall customer satisfaction.

Many third-party courier companies offer advanced tracking systems so customers can stay up to date on the status of their orders, increasing transparency and trust.

Logistics and delivery efficiency is an integral part of our economy and local supply chain.

Taking action wisely in this area can significantly increase the performance of your SME business, enabling you to scale growth and improve efficiency.