Entrepreneurs: How to optimize your freight shipments to take your business to the next level

Currently, entrepreneurs represent one of the most vibrant and dynamic ecosystems globally. The World Economic Forum describes SMEs as “the backbone of the global economy”, noting that they make up 90% of all companies and provide around 70% of all jobs.

However, many SMEs are under pressure to survive – and thrive – in a time of ongoing economic pressures and rapid technological developments. This last presents both difficulties and great opportunity, requiring continuous adaptation. One area where digital tools can make life easier for many entrepreneurs is in managing logistics: Today’s digital tools offer companies new ways to fulfill shipments and thereby improve customer experience and support business growth, while keeping costs down.

With this in mind,Timothy Oladimeji, Business Development Manager for inDrive, Nigeria shares expert tips to help SMEs optimize shipments and take their logistics to the next level:

Choosing a delivery service – how digital tools are changing the game

If your business handles the production and delivery of heavy objects or large quantities of goods – such as furniture, agricultural products, or even event organization, entailing catering equipment and other props – you probably need to hire trucks from time to time.

Depending on where one is based, hiring a truck on an occasional basis means searching a directory or even finding available drivers on the streets, near big markets – much like a taxi. The disadvantage of this approach is that there are no contracts, safety guarantees, or service level agreements to protect either party, and the final price can come as a surprise.

Alternatively, some companies employ a dedicated truck driver to be at the business’s disposal. While this solves several problems, it’s not ideal for a business that only needs delivery occasionally. It can mean paying for a service you’re not using, as downtime is inevitable; at other times, a single truck and driver might not be enough. It also requires a certain amount of commitment and management.

It’s also possible to outsource deliveries to a logistics firm. This is a good option if your business has strongly built processes and a regular schedule of deliveries, and can plan them ahead of time. Logistics firms offer service level agreements, cargo insurance and other benefits; the downside, of course, is that their services can be pricey.

Here’s where digital tools enter the picture: the evolution of delivery services that work through an app or the web offer the best of both worlds, especially for businesses that need cargo transportation on an occasional basis. Such apps are quick and easy to use, require minimal commitment, and drivers are subjected to various checks when joining. Many offer real-time tracking, so that you know where your delivery is at any given time, and provide ratings and reviews by previous clients, so that you’re not blindly hiring a stranger to move your goods. All of which makes this a promising option for SMEs who need to transport goods, but want to keep costs to a minimum.

What kind of vehicles do you need?

Certain goods require specialist forms of transport: in these cases, you probably can’t use an app-based service. For example, liquids may call for tanks or reservoirs, and in most cases, you’ll need a dedicated service if you’re moving livestock or other animals. App-based services usually prohibit the use of their services in transporting dangerous chemicals, flammable substances and weapons.

On the other hand, if you’re moving furniture, appliances, clothing and accessories, construction materials, food, beverages, auto parts, or anything similar, app-based services may be your best bet. One area where these digital tools have made their mark over recent years is in food delivery: worldwide, the demand for this service has been growing rapidly, and Business of Apps reports that “the entire food delivery app industry is expected to reach $165 billion market size by 2029.”

Using a delivery app: what to consider

Here’s a quick checklist of points to consider when using an app-based delivery service:

Vehicle type: How big a vehicle do you need? Do you have any other specific requirements as to vehicle type? Once you’ve established this, check what’s available to meet your needs. Some apps offer a really wide range of vehicles, including pickups, mid- to large-sized trucks, or even tow trucks and tricycles.
Quality check: Always check a service provider’s ratings and reviews, and choose accordingly. Also, look for services that offer real-time updates or tracking. Delivering an order on time is important to ensure good customer experience.
Consider your packaging: Will it protect items, especially if they’re fragile? Using branded boxes, incorporating personal touches in the packaging, or including a promotional flier offering discounts on future orders can effectively supplement your marketing efforts. And always label each package clearly with the recipient’s name, address, and phone number. (It’s also a good idea to photograph each package to document its condition before handing it over to the driver.)
Organize assistance: Do you need people to load or unload a shipment? Apps may allow you to hire people to provide this service, if needed.

As your business grows, your need for local and even national delivery may grow too. So it’s important to consider a freight delivery platform or app that can serve as a reliable ally, one that is designed specifically for the logistics needs of a company.

During times of economic pressure, optimizing every aspect of a business can be key to survival and growth. Digital tools offer the opportunity to do so; when it comes to freight delivery, they offer greater affordability, flexibility, and transparency. If your business has any need for delivery, this is an option worth investigating.