Having trouble getting your distribution costs down?
Distribution is a huge problem for a lot of food producers. Once you start delivering to a handful of stores, it can get out of hand.
There’s the time packing up the order, the time spent in the car, and the gas. It all adds up and becomes a never-ending cost of running a food company.
So, how do you get your cost down?
Use a courier or local delivery service.
I signed up for a local delivery service last week and made my first outsourced delivery yesterday. It saved me 180 miles on my car and three hours in travel – not to mention the gas. The cost? A whopping $12 for three cases of product. Totally worth it.
Locally delivery services, while hard to find, can save your business hundreds, if not thousands of dollars, a year. Let’s explore the benefits and how to find one below.
Why You should Use a Local Courrier Service
1. You save money on shipping
UPS and FedEx are great for large, heavy out-of-state shipments, but when you ship in-state, it can be expensive. Local delivery services are typically less expensive because they’re already in the area making other deliveries. Price it out before you move forward, though.
2. You save tons of time
I just sent an order 95 miles away to Southern Vermont. It would have taken me 3 hours of driving and a good quarter tank of gas. With local delivery, I can let them take care of deliveries while I focus on selling more mustard.
3. You can schedule pick-ups and deliveries online
Being constantly connected to the internet has its benefits – and one of those is being able to schedule deliveries. I love not having to call and place a delivery. Doing it online means I can schedule the pick-up during off hours without affecting my business.
4. You still maintain a personal touch
Shipping UPS supports a large corporation. Using a local delivery service means a better relationship – one where you’re both able to bend over backwards. And hopefully, the delivery man is so nice (see below) that your retailers enjoy dealing with them, too.
5. You can use it for more than distribution of your product
One of my friends who produces addictive energy bars uses his delivery service to not only ship orders to stores, but as a warehouse that fulfills ingredient needs for production and other needs. This enables him to spend 8 months in Colorado while his business runs in Vermont. Quite the life, huh?
I know I just discovered courier services, but for these reasons alone, I want to use them all the time. Sure, you may think it’s expensive, but when it saves you from driving 3 hours round-trip, you’ll thank me later.
Currier services are here to help you. But, sometimes it’s tough to find one. To help you out, I talked to a few food producers to see what they did.
How to Find a Local Courier Service
1. Use Google
Simply Google your city + currier service. Skip the ads at the top and look at the local results to see what you can find. There are a couple in the Burlington, VT area, but I went with Green Mountain Messenger because the process to setup an account was quick and simple. If you don’t find anything here, move on to the next way.
2. Ask Other Food Producers
I found my courier service by asking around. Granted, the Vermont food producer community may be much larger than yours, I simply asked how other food producers outsource a lot of the daily monotony of running a food business – and using a currier was one way they do it – at least locally.
Ask your food producing friends who they use for direct-store deliveries (if they have any). And if they’re doing it themselves, see if they know of a local delivery service you could use. Nothing ventured, nothing gained, right?
3. Look in the Phone book (believe it or not)
Couriers are old-school. They sill advertise in the Yellow Pages. If you aren’t using your phone book as a door stop or computer monitor stand, flip it open and look for local delivery. Call a few places to see if they deliver in your area. You’re bound to find a few!
Hopefully you’ve found a few curriers. Now it’s time to make your selection – and curriers are not created equal.
What Should I Look For in a Courier Service?
Friendly staff (call dispatch)
Just like you, I like nice people. People who treat me well (after all, I’m purchasing your service). People who sound friendly over-the-phone. Not jerks. The best way to know if you’re dealing with people who smile all day is by calling live dispatch to see the tone of voice used. Are they cheery? Accommodating? If you’re going to call dispatch several times a day, you want to deal with friendly people.
Next-day delivery
Many courriers offer next-day delivery within a certain radius. This is not only an awesome service to provide to your retailers, but it’s convenient for you. Plus, see if you have the ability to track your shipment. I can see when my package is picked up, in-transit, and delivered – all from automated emails. Sweet.
Online scheduling
Sometimes the phone is my enemy. I just don’t want to spend the whole day hopping from call to call, so it’s nice to schedule something online. See if your delivery service allows you to schedule online. It’ll save you even more time.
Willing to pick up from anywhere
Sometimes you have product at your house. Sometimes it’s at your kitchen. See if your delivery service or currier is flexible with where they’re picking up product. If they can grab it from the front steps of your house without charging extra, you’re working with a great company.
Watch out for hidden fees
Speaking of hidden fees, if you’re in the middle of nowhere (possible in 80% of Vermont), you may incur extra fees the service may not tell you about. Make sure to ask about these fees and when they occur. That way, you can price out the service to see if it makes sense for your business.
With your local delivery service selected, it’s time to start saving time. Schedule deliveries, ahead of time, get ingredients delivered, and share your time-saving strategies with other food producers.
Distribution is something every food producers struggles with. Hopefully you’ll have success spreading your product to the masses with the help of a local delivery service.
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