Go on a cost-cutting drive by checking out a range of parcel delivery options

Go on a cost-cutting drive by checking out a range of parcel delivery options

With every business being forced to keep a tight rein on its expenditure as competition becomes fiercer, there is much to be said for regularly checking the amount which is being spent on postage.

And with the cost of posting letters in the UK due to rise shortly, there is sure to be an even sharper focus than ever on this essential aspect of most companies' expenditure.

It is well proven in the e-commerce sector that many potential buyers abandon their shopping trolleys when they realise how much they are expected to pay to have their items delivered, on top of the basic cost.

While businesses whose products are mainly small and lightweight can probably absorb much of the cost of sending out their goods, in most cases, the postal charges are a necessary extra which cannot be avoided.

So if they can't be avoided, what other options are there for reducing the burden?

The most obvious is to shop around. It might be that a business has been taking its items along to its local post office for years, and not questioning how much it is being asked to send them.

But deregulation of the parcel delivery market has led to a massive influx of new companies looking to offer an alternative. While many of these have gone down the road of offering a one-stop shop, both arranging and carrying out the delivery, many others act as intermediaries.

These firms negotiate to buy space on delivery companies' vehicles, planes and ships which would probably otherwise remain empty. The big players are happy to let their space out to another operator, as it means they get income for space which would otherwise be unproductive.

That space is then available to be re-sold. The most efficient way of doing this is to set up an online operation by which customers book a delivery, and that booking is then passed on to the shipping firm which has the space available. It will then arrange direct with the customer the collection of their package or packages, and carry out every other step of its delivery.

There are really large potential savings to be made by this method, rather than going direct to the courier, as many firms and individuals are beginning to find out. So any business which does not already shopping around when it needs to send parcels to any destination, near or far, is missing a trick.

The internet is a powerful tool for cutting delivery costs, not just by checking out Royal Mail prices, but also comparing them to the international postage rates offered by other leading couriers.

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