In-House Delivery vs. Outsourced Delivery: Which is better for your business?

August 2, 2022
3 min
Mary Ma
Senior Product Designer

When it comes to shipping, there are a lot of options to choose from. Two of the most common are in-house delivery and outsourced delivery. Both have their pros and cons, so how do you know which is right for you? In this post, we’ll break down the differences between in-house and outsourced delivery, as well as the benefits and drawbacks of each. By the end, you’ll be able to make an informed decision about which type of shipping is best for your business.

Defining In-house Delivery and Outsourced Delivery

There are two main ways to deliver products to your customers: in-house delivery and outsourced delivery.

In-house delivery means that you, as the business owner, are responsible for getting the products to your customers. Usually, this means hiring, training, managing and firing your delivery drivers. Most of the time, this also means acquiring and maintaining company-owned vehicles.

Outsourced delivery, on the other hand, means that you hire a third party to handle the logistics of getting your products to your customers. This can include everything from optimizing delivery routes, picking up the products from your warehouse or storefront, updating your customers with tracking information, and finally getting them to the customer's door.

So, which is better for your business? The answer depends on several factors, such as budget, the volume of deliveries and the scale of operation.

The Pros and Cons of In-house Delivery

When it comes to in-house delivery, the pros are that it is usually cheaper than outsourcing, and you have more granular control over the deliveries your customers receive. You can choose your own drivers, train and manage your own fleet, and ensure that your products are delivered on time, every time.

The cons of in-house delivery are that as your business scales, it can become expensive to maintain your own fleet. It can also be a headache to keep having to find and keep qualified drivers since the turnover rate is high. Last but not least, managing your own fleet takes your time away from your core business. Many businesses that delivered in-house realize that managing delivery becomes an entire side business on its own—which is often not what owners planned or want to do. Rather than calling individual drivers to check on the statuses of your deliveries, you could instead be developing new products, doing marketing, and engaging with your customers.

The Pros and Cons of Outsourced Delivery

The upside of outsourced delivery is that you'll have someone else handling the logistics for you, which takes a lot of pressure off your plate, and you'll no longer have to worry about maintaining your own fleet. On top of that, many delivery service providers are experts in logistics. If you choose the right partner, you'll gain access to their expertise and resources, including technology, manpower, vehicles, and even warehousing, packaging and fulfillment partnerships.

There are some downsides to outsourcing deliveries as well. First, you may not have as much control over the process once you outsource. Second, if something goes wrong with your delivery, oftentimes you'll have to rely on the partner to fix the problem. If you care about customer experience, you must place a lot of trust in your delivery partner to be an effective communicator and to represent your brand.

The Bottom Line: In-house Delivery vs. Outsourced Delivery

Both in-house and outsourced delivery have their pros and cons, and it ultimately depends on your specific needs and what you're hoping to achieve.

In-house delivery can be less costly and gives you more control over the process, but is cumbersome and takes away from your focus. If you have a business where having precise control over your logistics is essential for your operations, managing your deliveries in-house is likely the way to go.

For most businesses, focusing on growth is a higher priority than managing logistics. Even though outsourcing deliveries come with some loss of control, as long as you take the time to find a reliable and communicative delivery partner, it is entirely possible to get a high level of customer service.

The bottom line is that it's important to weigh the pros and cons of each option and decide what's best for your unique needs. 

How Tyltgo Can Help You With Your Delivery Needs

Deciding to outsource your delivery needs or manage them in-house can be difficult. At Tyltgo, we understand that small business owners need to make every decision count and that delivering products to their customers is a top priority. That's why we offer affordable, customer-centric same-day and next-day shipping to businesses in Canada. We are on a mission to democratize shipping so that businesses can offer fast shipping, and compete with the Amazons and Walmarts of the world.

Tyltgo has a fleet of over 1,000 gig economy couriers across Ontario, and we service over 50 merchants across Canada to get their products to the doorsteps of customers. Some of Tyltgo’s proud customers include Kabo, Crafty Ramen, and Flower Co.

With Tyltgo, you can focus on what you're good at and leave the logistics to us. We have a wide range of delivery solutions that are customizable to fit your unique needs. Plus, we're always here to help with any questions or concerns you may have. Contact us today for a zero-obligation consultation and learn more about how we can help you!

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