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How Important Is Route Distribution To A Courier Company

by Al Terry

posted in Business

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Route distribution is the key service of a long term growing courier company. Route distribution offers a regular scheduled run and billing cycle which in turn brings regular business to the company. Opposed to rush delivery which you never know when the account will order or how many times they will need the service in a month, the business using your service may go months without calling. The on demand or rush delivery is also a last minute service with a tight deadline, so when the customer calls you may be unable to offer your services do to the location of your drivers, the account then has no choice but to call another courier service company, if that company is able to complete the service they then may receive future calls from the company you once had as a customer.

A healthy striving courier company is usually at about seventy-five percent route distribution and twenty-five percent on demand or rush delivery accounts. There is more money charged for a rush job, which benefits the driver and the company, however, the hassles and time restrictions make route distribution much easier and profitable in the long term. Once a route is set in place it runs smooth and error free, the route is on a schedule and after a one day training period any driver is able to take the route and do it on a daily basis. The courier company also always has the ability to add new accounts and "fit" new stops into existing routes or rearrange routes to be more profitable for the company and the drivers.

Route distribution accounts may consist of many different areas, we will start with the two most abundant and common for a courier service company. They are bank transit work and bank deposit work. Bank transit work consists of setting up a route distribution for a banking corporation, each bank requires its work at the end of the day to either be sent to a processing plant or directly to the Federal Reserve if the bank process the work themselves or "in house." The courier company who lands the account with the banking corporation will have to set up a route with one or multiple drivers to go to the banks, pick up the work, possibly meet other drivers to drop of the work and then run the work to the processing plant or to the "Fed." This work is always on a time critical schedule, and the original distribution planning maybe a bit tedious, but once in place will run smoothly and efficiently.

Bank deposits are another common service for route distribution, this usually requires the courier company to land accounts with local business in an area. The company then offers to pick up the daily bank deposits from the business and deposit them into their bank accounts for them. This is a daily pick up and delivery from many different small business to their local banks. The banks of a small town or city are all usually located in a small area, and with enough accounts from the local business it is possible to charge a small fee which makes it worth it to them, while getting enough accounts that the driver is depositing possible ten bank deposits from different companies to one bank which each uses, then only traveling across the street to drop off ten more for some of the other business.

A strong, healthy and efficient route distribution service is extremely important to a courier service company. The routes offer daily services which offerees monthly billing and payments from business. This allows the courier company to have a steady, relied upon income and also creates an infrastructure of drivers who will then also be able to handle rush and on demand jobs, while at the same time running the route. The possibilities are endless and always challenging, however you can see how beneficial a strong route distribution can be to a growing courier company.

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