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With the general public’s increasing demand, as well as the increasing benefits and practicality of environmental sustainability, Melbourne courier companies and other delivery organisations are testing out e-vehicles for their fleets, to see what they can do.
One of the more notable entities to be part of the revolution is Australia Post, with their latest announcement regarding their trail of a new, Aussie-built three-wheeled electric delivery vehicle, the Stealth OzPOD.
The vehicle, built in Southeast Melbourne, will be delivering packages to people in the Lilydale suburb over a five-week time period, as Australia Post looks to test the vehicle’s capabilities over different kinds of terrain, with the goal of seeing how this new model would work with existing electric vehicles available to Melbourne courier companies and Australia Post itself.
According to Australia Post’s General Manager for Network Optimisation, Mitch Burton, Lilydale is the perfect area to test the Stealth OzPODdue to the fact that locals in the area are shopping online more than ever before, and, as a part of that, more small parcels are being delivered in the area than ever before.
Burton added that the Australia Post is aware that the people in Lilydale love online shopping, with health and beauty, fashion, as well as media being the most popular purchases among residents within the area selected for the e-vehicle’s trial.
Burton noted that the yearly growth rate for online shopping in Lilydale is higher than Australia’s national average, sitting at 21%. In 2018, the area had about 79% of its households purchasing online, higher than that year’s national average of 73%.
Reportedly, the Stealth OzPOD was under development for two and a half years, locally built and designed with Australian environments and conditions in mind, with added measures to account for safety, stability, inclement weather, as well as gradient and surfaces. The e-vehicle has a carrying capacity of up to 720lt, with a top speed of 50km/h.
As Australia Post continues to change, Burton says that they are looking to equip their posties with the tools needed to deliver more small parcels. This new model and its trial is only their latest development, following their order of 1,000 Swiss-built three-wheel e-vehicles.
Logistics management is an important task for companies operating in different markets. Some companies have an internal logistics departments while others hire the services of a third party logistics provider.
Hiring the services of a specialist logistics company has its share of advantages and disadvantages. Businesses must study the pros and cons carefully and make a decision about hiring a 3 PL.
Advantages of hiring a logistics company
Logistics companies maximize their efficiencies by following the economic principle of specialization. They invest in logistical infrastructure, warehousing mechanism and latest technologies that help them to maximize their efficiency. These investments help the logistics providers to offer efficient and cost-effective services to their clients. Hiring a specialist logistics company is beneficial for smaller business units, who cannot invest huge sums in developing their own logistical infrastructure.
Small businesses cannot make huge investments in order to expand their logistics capabilities. Hiring the services of a third party logistics provider is highly beneficial for such businesses. Moreover, a 3 PL can provide scalable services to suit the requirements of a growing business. The business can benefit from the experience and expertise of the logistics company and dedicate their time to other important areas of the business like strategic planning and marketing.
Disadvantages of hiring a logistics company
No direct control
One of the main disadvantage of hiring the services of a 3 PL is the lack of direct control on the operations. The business has to rely on the logistics company for the delivery of the goods to the client. Any delay in the delivery of goods to the client results loss of credibility to the business and not the logistics company. The efficiency of the logistics company plays a major role in determining the customer experience.
When you hire a logistics company, the pricing is locked as per the specifications of the logistics provider. The business has to adhere to the pre agreed pricing model even when there are cheaper alternatives.
Once you hire a specialist logistics company, the business becomes dependent on the logistics provider. Any delays in supply chain management could lead to loss of productivity and revenue. This dependency can sometimes prove as a hindrance.
Businesses should weigh both the pros and cons of hiring a specialist logistics company and take a decision that is profitable in the long run.