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Courier Services Becoming A Commodity Business
Courier service is getting to the point of being a commodity, said Bob DeCaprio, executive director of the Messenger Courier Association of America in Washington, D.C. There are a lot of courier service companies out there and more and more businesses hiring them. It's highly competitive and some businesses choose them based only on price.

But often it goes beyond price. Lots of courier companies are finding niches. They will specialize in a certain industry in which a lot of packages are delivered, like banking (financial documents) or health care (medical supplies). And these types of couriers may add value.

"A company that specializes or has a niche, they're going to be more familiar to your industry and what your needs are," DeCaprio said.

Among the best places to look for a courier are the yellow pages or by contacting the MCAA, a trade organization representing more than 500 messenger and courier companies worldwide. And most large courier services are now on the Internet as well.

Talk to the companies' sales people about the rates and type of service the couriers provide. Some offer on-demand service; others prefer a scheduled route. The most important consideration is whether the company is reliable and delivers on time, which unfortunately is hard to determine until you actually use the courier.

Other things DeCaprio suggests to look for include:

  • Professionalism and appearance of the couriers;
  • The environment in which the company works;
  • The company's commitment to making the sale;
  • The company's knowledge about the industry.

Another thing to ask about is insurance. Although couriers do not carry cash, they often handle valuable financial documents, so it's important they carry adequate insurance.

Most businesses find a courier service they like and stick with it, DeCaprio said. Establishing a relationship with one courier service is helpful. There is only one number to call when you need a package to deliver, and the couriers get familiar with your account and your business' needs.

The longer a business stays with one courier, the more likely the courier is to give volume discounts and be extra dependable.

When delivering packages, mistakes are bound to happen. But businesses should not let mistakes slide. Call the company if something is delivered late and see if there is a legitimate excuse, like heavy traffic or a snow storm. Listen to how the courier answers and then decide whether to keep the service.

Besides delivering packages, the courier service should be able to track packages. Most companies have cellular phones or radios to keep in touch with drivers. And most set up systems so customers can track the location of packages on the way to their destinations.

And courier services, like all other industries, are changing with the times. Some services conduct business online.

DeCaprio said in a couple years, customers will be able to track their packages on the Internet, from the time the package leaves their hands to the time it arrives at its destination.

"That's where I think it's headed," he said. 

courtesy of American City Business Journals



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