How to Hold Down Courier Service Costs in 2013

Courier Service CostsCompanies that make repeated deliveries to the same location every day can often decrease their courier service costs by analyzing delivery patterns and making minor changes.

That’s what Essential Couriers did recently for one of our clients – and it’s a lesson that can be used other businesses that want to significantly cut their courier service costs.

Our client is a medical pharmacy that services long term care facilities.  When medications change, need to be renewed or a new patient checks in, physicians phone in a prescription to the pharmacy.  Each must be filled and delivered quickly, so there is no gap in the patient’s access to what is often life-saving medication.

The question we needed to answer was:  how fast a delivery is fast enough?  Staff at the long term care facility were thrilled with the service, but our drivers – who function as your eyes and ears on the ground – reported that the nurses always expressed surprise at how fast the deliveries arrived.  They never expected new medications until much later in the day.

When the client contacted us about holding down costs, we did an analysis of their delivery schedule and discovered that we’d been sending out packages four or more times a day.  Given the nurses’ comments, we came to believe they didn’t need the prescriptions quite that fast.  As an experiment, we decided to group the meds for delivery and cut down the number of times we went out each day.

In the first full month of this new plan, we saved the company 30%.  Customer service remained high, with not a single comment from the nurses that showed they even noticed the new schedule.  In fact, they continued to remark upon how quickly our courier service got medications to them.

So if your business makes daily multiple deliveries to the same location, consider grouping them and having your courier service deliver only once or twice a day.  And if you’re in southern California and would like to discuss ways to cut down your courier costs, Essential Couriers would be happy to meet with you and see what strategies could be put in place.

 

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