7 Common Challenges Faced by Courier Service Providers


7 Common Challenges Faced by Courier Service Providers

The global courier service industry is booming and is expected to be $658.3 billion by 2031. The rapid rise of cross-border commerce, eCommerce, and on-demand deliveries has pushed the courier service providers to new capacities and service offerings. Research suggests that the global parcel shipping volume will reach 256 billion parcels shipped in 2027. This means courier service providers need to be ready for increased fulfillment demands, delivery demands, and scalability challenges that come along.

Courier service providers are providing e-commerce companies with new avenues to expand their reach and cater their products to more customers. It is actually a lucrative business to look after the logistics of an e-commerce firm. However, it requires an advanced management system to serve courier services to multiple companies. In other words, there are many challenges involved in this process. This article highlights those problems and provides a way to overcome them all.

7 Courier Management Challenges Faced by Courier Companies

Here are seven of the many hurdles courier companies face with courier management.

Inability to Manage Multiple Customers

eCommerce companies are the customers of a courier service provider. Since a courier company associates with multiple e-commerce businesses, it is imperative to have a management system efficient enough to handle their orders, and keep a record of the COD remittances and other processes.

Delayed Deliveries

Delivering consignments at the given time might cause a courier company to lose its clientele. It can also increase the overall shipping cost. Above all, it could lead to customer dissatisfaction, hence, a high rate of RTO (return to origin).

Poor Visibility on the Courier Delivery Operations

Transparency and visibility on the courier delivery operations keep things intact. It can ensure that goods are being delivered without any delay. However, a company with no visibility on courier operations might have to face difficulty in delivering orders on time. It could also become a hurdle in tracking deliveries.

Dependency on Human Resources

Minimizing the reliance on human resources is one of the biggest challenges in front of courier companies. Hiring big teams for courier management means high operational costs.

Keeping Customers Updated

Keeping both the e-commerce company and the end customer updated with the status of the courier is necessary to maintain transparency. It also reduces the number of calls to the customer support centre.

Delivering Goods Without Any Damage

Delivering goods safely to the customers’ place is also one of the biggest challenges in front of courier companies. Any damage to the product might not only impact the reputation of the courier service provider, but they might also have to pay for it.

High Delivery Cost

Managing courier operations, like order segregation, order allocation, selecting the right delivery vehicle, assigning drivers, planning delivery routes, and more manually, might require a big team of professionals. Moreover, it also requires a considerable amount of time and effort to perform different operations. Controlling this cost is a big problem for courier service providers.

How to Overcome Courier Delivery Management Challenges?

The simple answer to this question is by using courier management software. Such software can automate the process, thereby helping courier companies to overcome various challenges. Besides, it can also please eCommerce companies as well as end-customers with safe and fast deliveries while shrinking the overall delivery cost.

Courier management software or courier software, provided by Shipsy, can build a seamless communication system by providing features like real-time tracking. The software includes a smart order management system to automatically sort and allocate couriers for delivery.

Shipsy’s courier software comes up with an automated route planning and optimization feature to generate the most efficient routes for delivery. To get the SaaS-based courier software from this trusted company, all you have to do is to reach out to one of their experts with your particular requirements. 


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