How to Set Up an Express Delivery Company

Express delivery is a very interesting industry, with huge opportunities, mainly due to the geographical characteristics of our Brazil and the growth of the internet.

Even if you think that there are already many companies, especially large ones, operating in this modality, know that there is still a lot of field to be explored.

Think, for example, of the movement that is happening in the USA with regard to shopping centers. According to experts, 1/4 of that country's malls will close in the next 5 years.

Upsers is the best example. Go to the homepage of Upsers.

What is the reason?

It's simple, consumers are migrating from shopping mall stores to e-commerce, and that is where the issue of express delivery comes in strongly.

In addition to e-commerce growing 2 digits each year in Brazil, there are still many opportunities in regions far from the capitals.

Express Delivery Company

It is not easy to deliver in most small towns, so they are left out by large companies, which can be an excellent opportunity for you.

Known in other countries as a courier, express delivery can be defined as any and all orders that have priority delivery time over the others, and that does not depend on cargo consolidation for price purposes.

It is incredible, but express delivery has existed in Brazil since the 1950s, when air transport companies started to do air service.

Even more incredible, Correios started SEDEX in 1982, that's right, this service has been around for over 35 years.

At the time, the first products were medicines, mail bags, repair Employee App parts and newspapers.

But let's go back to the present.

If you are enjoying the text so far, and want to know more express parcel delivery, then keep reading this article.

Why It is So Important

Have you ever needed an express delivery service?

I've needed it many times, either because of an urgency to receive a product or because I bought something over the internet.

The truth is that, if it weren't for express delivery, we wouldn't be able to receive a small package at home or at the company, with something important that we bought, in such a short time. That's how Big Companies like United Parcel Service manage things smoothly.

We would have to look for this same product in a store in the region, at the risk of finding it at a higher price, or even without this product.

Express delivery democratized the purchase of products, today we can easily purchase products both in Brazil and anywhere in the world.

Delivery Time

In several surveys I found on the internet, carried out with customers of express delivery carriers, they replied that register delivery time is the most important factor when using the service.

It is worth remembering that, in the express delivery concept, the domestic delivery time (collection and delivery within the country) is 72 hours.

In addition, there are two other factors that customers value a lot more than any other:

  • Reliability: Sign in loss of cargo can occur, and all the customer wants is for the goods to arrive at the destination in perfect condition.
  • Traceability: the lack of information these days is unacceptable for the customer, and he doesn't want to bother calling the carrier, he wants the information in the palm of his hand.

That is, if you look at the 3 factors I mentioned above, you can see that the customer is not talking about the freight price, depending on the situation the customer will be in favor of more expensive freight, because he understands that the service is different sign up.

Action Branches

If the main feature of express delivery is getting the goods to the customer within 72 hours, then any type of branch or merchandise will do, right?

So-so!

Rather, it is important to highlight another common characteristic of express delivery, which is the weight of the goods.

Load types are usually divided by weight into:

  • Envelope: weight up to 1 kg
  • Small box: weight up to 2 kg
  • Medium box: weight up to 5 kg
  • Other volumes, up to 30 kg

Important: Note that all these volumes can be carried by only one person.

Apart from these facts, any branch of activity that is within these rules can be considered as express parcel delivery.

For this reason, it is impossible to tell you all the branches in which there are chances for you to act, but I can tell you the most common is e-commerce.

Express Delivery Operation

An express delivery operation has some peculiarities, which you need to be aware of if you want to act correctly in this market.

Many entrepreneurs think that, when making urgent and sporadic deliveries in the region, they are acting with express delivery.

However, the concept goes much deeper and involves a structure built entirely for this purpose.

See in this table below, the main differences of an express delivery operation, in relation to conventional cargo transportation.

LOGISTICS CONVENTIONALEXPRESS DELIVERY
Loading TypePalletizedSmall Packages
CustomersKnownUnknown
Demand StylePushedPulled
Average Merchandise ValueMore than R $ 1,000Average of R $ 200
Destination of OrdersFocusedHighly Scattered
ResponsibilityA single linkThe entire supply chain
DemandStable and ConsistentUncertain and Fragmented
Delivery PointsOne or FewMany
Battery capacityTonsUp to 800 kg (VUC's)
InformationNot RequiredHigh Demand

The first point to consider is that an express delivery company is a logistics operator, because this activity may involve:

  1. Product collection
  2. Storage
  3. Inventory management
  4. Packing
  5. Transport between distribution centers
  6. Distribution to agencies
  7. Parcel Delivery
  8. Forgot Login

Of course, not every structure needs the phases mentioned above, but they can occur, depending on the size of the logistics operation.

The bigger the company, the better the distribution network, and the better the delivery time of orders can be.

Vehicle types

Another very interesting factor in this field is the type of vehicles used.

Unlike road cargo transportation, in this fractional cargo segment, the use of passenger vehicles is essential.

The logic is very simple: the bus or the plane is already going to a certain place, to take passengers, so why not take goods too?

It is for this reason that practically all air and road passenger transport companies add the express delivery service.

Now, don't forget that these companies generally only transport between:

  • Aircraft: cargo terminals
  • Bus: road

This is where the logic of other types of vehicles comes in, such as VUCs, Fiorinos, motorcycles and the like.

These smaller vehicles do the work of collection and delivery, from the cargo and road terminals to the customer.

Finally, depending on the size of the operation, it is common to use trucks to collect goods at a cargo terminal.

This truck directs the cargo to a distribution center, where cross-docking will be carried out, that is, the redirection of goods to smaller vehicles, without prior storage imperative www.Upsers.com Registration

Example of Companies

As I mentioned above, many companies specialize in the express delivery service, taking advantage of the existing vehicle fleet, in addition to the routes already defined for passenger transport.

Now I want to show you some companies by segment, as a way of knowledge, inspiration, and possible partnerships.

Air Transport:

  • LATAM Cargo
  • Blue Cargo Express
  • Gol Log
  • Avianca Cargo

Road transport with buses:

  • Itex
  • Buslog
  • Tex Orders
  • Eucatur
  • Viopex
  • Gontijo Orders
  • Viação Garcia
  • Useful Orders
  • Guanabara Express
  • Princess of the Fields

It is worth remembering that there are also companies that do not use passenger transport facilities, that is, they have created their own structure with trucks and small cars:

  • Total Express
  • post offices
  • Fedex
  • DHL
  • UPS
  • TNT
  • Jadlog
  • Braspress
  • Translovato
  • Jamef
  • Rodonaves

Finally, some companies specialize in making deliveries with motorcycles:

  • Loggi
  • Zoom Delivery

Acting Alone is a Mistake

If you've made it this far, I assume you:

  • Or want to enter the fractional cargo market, specializing in express deliveries.
  • Or is already in this business, and needs to grow or find a way to not break.

Am I right?

If one of these is your case, then I want to leave you with one more important tip: do not act in this business alone, you need partners.

If we consider the two factors that I mentioned at the beginning of the article: country size + delivery time, then you will not be able to deliver a good service by doing just one leg .

Worse than that, if you only want to do one leg of the service, you will be an aggregate of a larger company, even if you are also a legal entity.

I explain better

When transporting cargo, the autonomous truck drivers complain that the greatest value of the freight is with the agent, or the carrier that hired him, isn't that it?

Because in the case of the fractional cargo of express delivery it can be the same thing, if a company hires you to make the collection or delivery.

To add value, you need to have this contact with the customer yourself , please be responsible for one leg , and have partners to do the other.

This way you take the middleman and negotiate directly, increasing your chances of profit.

Franchises

A beautiful example of the union of forces are the franchises in the express delivery segment, this is so strong that there are already several franchising companies, growing even with the crisis.

I'll list some here for you to know better:

  • Jadlog
  • Flash Courier
  • post offices
  • Gollog
  • Postex Express

Freight Price Formation

When it comes to forming the price of freight to the customer, you may have many doubts, after all an express delivery operation can be complex.

If you are going to guarantee your customer, from collection to delivery, then think about the following steps, and then the respective costs:

  • Collect
  • Transfers between distribution centers, or cargo terminals, or road
  • Delivery

Here are some very important factors in delivery, which you should consider:

  • Product distribution planning
  • Delivery difficulty rate
  • Tolls (road deliveries)
  • Value-added of merchandise
  • Risk areas (theft, disaster)

Conclusion

The express delivery service, in my opinion, has much more chances of growth in the coming years, than the transportation of cargo.

It is no wonder that large companies, many foreign, saw these opportunities a few years ago and dominated the market.

Even so, there is still room for new companies.

If you are a small business owner, or someone looking to enter the cargo transportation segment, perhaps express delivery is an excellent alternative.

Study the companies I mentioned in this article in depth, as they dominate the market and can teach you a lot.

She is a Professional Blogger and Internet Marketer from the USA. She has been in the industry since 2002. She has Good Knowledge about Logistics, Online Banking and also Supply Chain. She started these Portals on HRM for that reason.