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Optimize on-demand parcel delivery through digital transformation

Optimize on-demand parcel delivery through digital transformation

Updated on April 14, 2021
11 min read

In this era of superfast gadgets and innovative technologies, we can easily access anything by just making a few taps on our smartphones. This ease of access has become possible thanks to the on-demand delivery apps.


Due to the highly progressive on-demand apps, customers can get everything without the need to leave their homes. Also, on-demand apps had covered many of the industry verticals and parcel delivery segment is no exception.

To provide speedy deliveries to clients, on-demand delivery companies partners with better parcel delivery service partners. That is why global parcel delivery businesses focus on developing cutting-edge parcel delivery solutions. It enables them to offer a rich customer experience that raises the bar higher and higher.

Here a great parcel delivery system can be of great help to the traditional parcel delivery business as it can streamline its services. Also, it helps the parcel delivery businesses to effortlessly handle a large number of daily orders.

So if you are still doing your parcel delivery business in the same old fashioned way then now it is the time for you to switch to the disruptive on-demand model. For this, you first need to integrate a technologically rich on-demand parcel delivery solution into your business.

But before you start with parcel delivery app development, you need to know some important things such as current market trends, traditional parcel delivery challenges, features. Also, we will show you here why your business need a parcel delivery solution.

Let us look at these things one by one.

Current market scenario of on-demand parcel delivery

In less than a decade, the parcel delivery market contributed a lot to the development of the on-demand economy. In 2018, FedEx, UPS and DHL covered approximately 91 per cent of the global courier and parcel delivery markets. As per statista, the global volume of parcel deliveries is estimated to reach 262 billion (approximately) in 2026.

As per PR Newswire, the global parcel delivery market size will be $66,000 million (approx.) Also, the CAGR will be 8.9% (approximately) from 2021 to 2026.

Here are some more interesting parcel delivery statistics by Research and Markets:

  • In 2018, the global parcel market was US$380 billion which was increased to US$430 billion.
  • The Asia Pacific is the biggest market for parcel delivery as it covers 42% (approx.) value of the global market.
  • Global online sales approximately $3.3 trillion in 2019 at a yearly growth rate of 22%.

After getting an in-depth view of parcel delivery markets, let us see the challenges faced by the traditional parcel delivery businesses.

Challenges faced by the traditional parcel delivery business

Traditional parcel delivery companies face multiple challenges in their daily operations. If these problems are not sorted out at the earliest then it might create a negative image of the company. Here are the challenges that can hinder the growth of a traditional parcel delivery business:

Improper tracking system

Traditional parcel delivery companies do not have the right software in place to track parcels which makes it difficult for them to track their deliveries and their status. Besides this, there are some other factors such as traffic jams, waiting time, vehicle breakdowns, etc. that can adversely affect the parcel delivery.

Read More: Track your fleets on the go

Product packaging issues

The delivery of damaged or broken goods is the worst thing that may happen to a traditional parcel delivery business. This can particularly happen in the case of broken cold drink bottles, cookies, cakes, toys, furniture, etc.

Also, there are some sensitive goods such as electric appliances that need meticulous packaging for delivery. But the traditional parcel delivery business fails to provide their customer with strong and secure packaging during deliveries. Thus, there may be fair chances for the traditional parcel delivery business to miss out on their customers.

Higher competition

Traditional parcel delivery businesses also face tough competition from advanced delivery service providers who use advanced parcel delivery solutions. On the other hand, traditional businesses lack suitable technological infrastructure.

Technologically advanced parcel delivery companies such as DHL, FedEx, and Royal Mail dominate the global parcel delivery markets. So it is not an easy task for the traditional parcel delivery businesses to compete with these tech giants.

Increased needs for staffing

Some traditional parcel delivery companies rely on the same old manual procedures that may result in an unnecessary increase in the staff. Also, they do not give enough training and resources to their employees.

Thus, without proper employee training and attempts to standardise the parcel delivery process can adversely affect the staff’s productivity.

Apart from this, the parcel delivery business needs to hire additional staff during festival sales or special discount sales to cope up with the increased workload. Thus, it becomes hard for a traditional parcel delivery business to manage such a big team.

These parcel delivery challenges need to be solved at the earliest as the parcel delivery landscape is changing rapidly. Develop a digital transformation strategy to build affordable solutions that can help you to cope up with the above challenges.

Overcome the parcel delivery challenges with an on-demand parcel delivery app

In order to make a successful on-demand parcel delivery software, you should ensure that it is equipped with all the essential features. Here are some remarkable features that you should add to your on-demand parcel delivery app:

Real-time tracking

It is hard to imagine an on-demand parcel delivery solution without a real-time tracking feature. Real-time tracking features can help traditional businesses to track their parcel deliveries more effectively. One can integrate this feature in the admin app, customer app and driver app.

In the customer app, customers can track the location of their delivery in real-time from its start. Also, users can know the estimated time of their delivery which assures them of safer and genuine parcel delivery. In this way, the parcel delivery businesses can build great credibility among their customers.

Parcel delivery admins can use this feature to track the drivers. Moreover, they can use the real-time tracking feature to inform their drivers about heavy traffic, road blockages, and diversions.

In a nutshell, the real-time tracking feature is a boon for the drivers as it will suggest accurate routes and suggestions to the drivers which will help them to reach the destination speedily.

Proof of delivery

Proof of delivery is one of the important features of an on-demand parcel delivery app. With this feature, drivers can click the parcel’s photo while collecting it from the sender and after delivering it to the receiver.

This picture works as proof of delivery that assures both the sender and the receiver that their parcel was reached safely. Thus, this feature eliminates any possibility of fraud or theft.

Easy order management

With a huge increase in orders, it often becomes difficult for the parcel delivery admin to keep track of each order. But with an on-demand parcel delivery app, you can easily resolve this issue. The app will store all your order data. So now, you will have all the information right in your hands.

Moreover, you can track the driver too. You will get to know all the details of the driver such as the expiration of his license with you. Also, you can store the duty hours of your driver in the app.

Multiple payment integration

Fastly growing parcel delivery companies connect their applications to multiple gateways to facilitate both business and technical innovation. With the integration of multiple payment methods, parcel delivery owners can explore dynamic parcel delivery business models.

For example, a parcel delivery company can bring multiple restaurants and food outlets on board by allowing multiple payments. However, each of them can have their own payment service provider.

In a nutshell, multiple payments integration would not let you miss out on a single customer. Also, you can choose a suitable payment service provider vendor and leverage excellent payment gateways that can benefit you.

Read More: How wallet system works and why it is important?

Effortless driver management

With a robust parcel delivery app, it becomes easier for the admin to assign the vehicle to the drivers. Also, the parcel delivery app will help the parcel business owner to track its drivers.

Apart from this, the parcel delivery Admin can easily know all the details of the driver, including the expiration of his or her license with you. Also, you can store the duty hours of your drivers on the app.

Benefits of an on-demand parcel delivery app

The demand for seamless on-demand parcel delivery services has increased in the past few years. So it is the best time for the traditional courier delivery services to go digital to fulfil increasing customer needs.

And an on-demand parcel delivery app is the best way to do this. It will let the traditional parcel business stay ahead of the competitors.

Now let us look at some more benefits offered by an on-demand parcel delivery app:

Route Optimization

A parcel delivery solution offers the Admin a state of the art real-time tracking feature that makes the courier and parcel delivery business stand out from the rest.

Furthermore, this feature helps the parcel delivery owners to monitor all their delivery activities from a single place. They can assure that the drivers are on the correct delivery route.

Besides this, an on-demand parcel delivery software helps the Admins to optimize parcel delivery routes by tracking the areas with higher demand and diverting the route accordingly.

Read More: Enhance your deliveries successfully during COVID-19

Builds a great brand image

An on-demand parcel delivery app enables you with better visibility for your brand. When clients will use your on-demand app to book deliveries, they will see your company logo all the time. In this way, an on-demand parcel app will do repetitive marketing of your brand.

Along with this, parcel delivery apps are a proven way to extend your reach in the global parcel delivery markets. So this is how an on-demand parcel delivery app can help you to create a better brand image.

Accurate analytics

A feature-rich on-demand parcel delivery app can provide parcel delivery businesses with accurate analytics that helps them to make better decisions to grow their business.

Also, the parcel delivery solution offers you all the essential data such as the number of delivered parcels, profits, commissions, etc.

Furthermore, you can also get detailed financial reports that can help you to manage your finance efficiently. Also, you can find the segments with more expenses and develop remarkable financial strategies to cut down unnecessary expenses.

Efficient deliveries

When you have an on-demand parcel delivery solution, you can make your deliveries efficient by assigning drivers to every delivery. Moreover, you can quickly process more and more parcel deliveries as this app does not require complex technical knowledge.

So if you schedule quicker parcel pickups, you can speedily assign a suitable delivery partner that can deliver in record time. Thus, making deliveries faster is yet simplified with an on-demand parcel delivery solution.

Minimal Paperwork

Traditional courier businesses have to cope up with a lot of lengthy paperwork due to the lack of a digital data storage facility. However, an advanced courier delivery app significantly cuts down the unnecessary paperwork by digitally storing every delivery and product information.

So in this way, a parcel delivery app can automate everything and saves the stationary expenses of parcel delivery companies.

Better management

Courier and parcel delivery organisations have a big fleet of vehicles. So, it becomes tough for the parcel delivery business to keep a track of every vehicle in the fleet and manage them effortlessly.

But with an on-demand parcel delivery app, you can easily track your vehicle and manage them accordingly. Also, you can get detailed information about the drivers who drive the truck.

Along with fleet planning, warehouse management is one of the integral functions of a parcel delivery service. With an on-demand parcel delivery app, it becomes easier for the Admins to manage their warehouses. Also, the owner will have a record of all the inventories at their fingertips.

Final Words

Traditional courier services are gradually becoming a thing of the past with the inception of top-notch on-demand parcel delivery apps. Such apps can easily revitalize your traditional parcel delivery business.

In this blog, we have provided you with the challenges of traditional parcel delivery services. Also, we have discussed with you how an on-demand parcel delivery app can help you to cope up with these challenges.

If you are thinking of making a fully-featured parcel delivery system for your business, then Yelowsoft’s on-demand parcel delivery solution is the right choice for you.

Yelowsoft is delivering the digital transformation to the courier and parcel companies with its on-demand parcel delivery system that contains advanced features that is made as per the latest on-demand delivery trends in 2021.

So what are you waiting for? Just reach out to Yelowsoft for more information on the on-demand parcel delivery app. Thank you for reading this blog.


Mushahid Khatri

Mushahid Khatri is the Chief Executive Officer of Yelowsoft, one of the leading taxi dispatch and on-demand delivery solution providers. He is a visionary leader who believes in imparting his profound knowledge that is leaned on business and entrepreneurship.

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