Why Digitization is Critical for Courier Companies?

Amir Mobarakian
Delivery Pulse
Published in
5 min readJul 30, 2024

It’s time for courier companies to start making digital transformation a win-win for all processes. I see many courier business owners thinking of, for example, going mobile as a transformation, without considering how that will impact the real interests of customers, employees, or courier business partners.

Most courier companies are improving productivity and sales, but just few are approaching the astonishing benefits of digitalization in a creative and balanced way.

Embracing Digital Transformation: The Future of Courier Companies

According to the GoPeople article, most courier companies are fixated on the low-hanging fruit of digital to improve profitability and cover management’s back. It’s clear to everyone that digital works — and it’s time to put it at the core of business and IT. Traditional processes and applications are driving productivity at the expense of customers and strategic goals.

In my opinion, a courier company that strives to transfer most courier business processes online can be called digital. This is the management, control and analysis of all the main business processes of the courier company online — agreement approval, accounting, logistics processes, transaction registration, procurement, staff training, monitoring relationships with partners, and clients, technical support and much more.

In addition to information systems, it is necessary to introduce an appropriate culture in the courier company. And this, in combination, makes the company “digital”, ensuring its efficiency, productivity, and courier business growth potential — competitive advantages that are urgently needed now. We consider our courier company digital, but we still have room to grow in this direction.

The phenomenal thing is to understand that the transition to new technologies is inevitable. And the speed and success of this restructuring depends on how quickly we understand the need to integrate modern technologies into our daily work and courier business processes.

Courier companies need to recognize this as a reality, change the format, start working in the same way as new digital services, train courier company’s staff to work with new technologies, the implementation of which is necessary for courier business development, and introduce incentives for employees who have mastered new technologies.

The core competency that needs to be developed is the ability to continuously learn, the willingness to constantly acquire new knowledge on new emerging technologies. This is a key factor for successful professional growth in today’s digital world.

Firstly, mentality — in some countries, there are still courier companies that believe that information technologies pose a threat to the traditional way of their courier business. Even those courier companies that understand the need to integrate into the digital reality find it difficult to adapt. The most difficult change for courier companies is the restructuring of their corporate culture, and business processes.

Benefits of Digitization for Courier Businesses

Digitization of courier companies means changing the organizational culture of every courier business and startup with the help of technology.

Sometimes it is seen that courier business managers apparently introduce new technologies into their courier business process, but actually things are still done in the old way.

Courier businesses use digitization to modify existing processes, incorporate new initiatives, and redesign customer experiences to respond to the dynamic world of courier business and market demand.

Some of the most important benefits of digitization for courier companies are:

  • Improved Operational Efficiency
  • Enhanced Customer Experience
  • Real-Time Tracking and Visibility
  • Increased Speed of Deliveries
  • Better Inventory Management
  • Streamlined Communication
  • Improved Route Optimization
  • Automated Documentation and Billing
  • Integration with E-commerce Platforms

Using Software for Your Courier Service

As with any courier business software, the choice must always be guided by the internal needs of your company. The courier management software with the widest range of functions is not always the one that is right for you.

The economic factor must also be considered: not all courier companies, especially those of modest size, have the necessary capital or the intention to invest it in specialized software. However, the courier company’s management and therefore, the continuous care of the inventory is a fundamental task that cannot be ignored.

The courier software tends to digitalize by automating and streamlining many diverse procedures like order management, billing, and invoicing, which reduces manual tasks and errors.

The courier software enables real-time location tracking and real-time notification, thus providing you and the customer with complete transparency and visibility, thereby enhancing customer experience. It creates optimized routes and manages inventory, increasing operational efficiency and speed.

Additionally, it comes integrated with e-commerce platforms and CRM systems for smooth data flow and better management of customer relationships. Besides, electronic proof of delivery, digital processing of payments, and paperless documentation make your operations safe, efficient, and environment-friendly, changing traditional courier services into a modern, digitized system.

Threats of the Digitization of Courier Companies

It is clear that every courier industry will be affected by digitization, but it is not known to what extent and how much time is left to prepare for it. The most phenomenal thing is that it is not limited to AI and you should not expect that when new technologies are introduced they will do all the work — a miracle will happen.

Courier business leaders must create a digital strategy and realize that it covers not just one area, but the entire courier business model. As a result, they must take into account available resources, knowledge and experience. This phase should refine the ways and means of creating value for customers or users in the new environment by assessing changes in revenue, operations and other critical factors such as culture, risk or competitive environment.

It is important that the planning and implementation of digitization programs involve courier company employees, key suppliers, customers or courier business partners, industry representatives, and external experts — everything is done collectively, not individually.

Conclusion

So, digitization is crucial for courier companies. No courier company can simply stand still. The question is to choose the right goal and take smart steps. Digital transformation means outward orientation and agile as a strategy.

Digital courier business platforms are the ideal tool to ensure rapid digital adaptation and balance between the internal and external goals of the organization. Digitization in courier companies is an innovation process that happens not only through technology, but also through changes in the thoughts and culture of courier businesses.

The purpose of this change is to optimize the activities and processes of a courier business, which can directly affect the experience of all people who come into contact with the courier business. Among these people, we can mention employees, service providers, partners or customers.

Of course, you should not forget that in this process, customers are always the priority of the business. Digital transformation in courier business can be fundamental from different aspects.

In general, it should be noted that digitization of courier companies can transform a courier business into a more efficient and sustainable organization and improve its services.

On the other hand, digitization of courier companies can optimize the processes that exist in a courier business and cause the results to improve continuously and the courier business owner to achieve his or her desired results.

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Amir Mobarakian
Delivery Pulse

As the co-founder and marketing manager of Onro, I share insights on logistics, technology, and entrepreneurship.