One of the biggest issues on business owners minds is whether they should actually hire an in house deliveryman who is dedicated to delivering items for the company or they should actually engage the courier and delivery services of an external courier company like PCA Masters or Regent or even SingPost.
Here are some tips to help you come to the right conclusion.
First of all, you need to understand that vehicle ownership is much more expensive in Singapore than in most other neighboring countries. This means that if you were to either purchase or lease a commercial vehicle for deliveries, you would be incurring a lot of expenses up front. To make it worse, you can only depreciate it over 10 years as COE would have run out. You would then need to be forced to dispose of the vehicle for virtually no money. This can be very expensive and is a clear unnecessary expenditure for companies which main business service is not deliveries.
Secondly, if you were to hire a deliveryman, the estimated salary including CPF payments for him or her would probably run up to around $2,000 to $3,000. This means that you should at least get him or her to deliver products (if you are an E-commerce business owner) which would profit you more than $2,000 to $3000 before it is worth it to hire him or her. However, if you were to engage an external courier company which specialty is deliveries, they have the advantage of economies of scale as well as prior training and experience. This means that they’re able to perform each delivery for much cheaper than your deliveryman would be able to perform. Not only would this save you effort, it would also save you a lot of money by engaging external courier services!
In a nutshell, engaging the services of a courier company would be the wise choice for most companies in Singapore.
First and foremost, my name is SargeWay and having lived in Singapore for the past 32 years, I find that many fellow Singaporeans still do not know a lot of things about the logistics industry in Singapore.
For example, there is a big difference between courier services and registered mail services in Singapore, but most of the people do not know this.
I get this question quite a lot, and so I decide to share the answer publicly here with everyone.
Firstly, courier services are services provided by private courier companies located within Singapore. These are companies such as PCA Masters Singapore or Regent. Courier services are basically delivery services but there would either be a rider or a driver who will be dispatched to pick up the items from you or the sender. You can specify the exact time that you want the collection to be performed. You can also specify the time that you want it to be delivered. Basically, it is a premium level of service where the deliveryman or courier will be able to cater to your every whim and wham. Courier services are meant for both businesses as well as consumers. Upon delivery, there would be a signed consignment note by the recipient to act as proof of receipt.
On the other hand, registered mail services are provided by SingPost and not couriers. Essentially, you will need to travel to any local SingPost branch in Singapore and pass them your documents or parcel over the counter. (Sometimes, you need to queue for very long.) They clearly do not offer any kind of pick up services whatsoever. You would need to deliver it to them. After they have collected the item(s) from you, it would be more similar to that of courier services, whereby the SingPost deliverymen would also provide the recipient with a consignment note which he or she would sign upon receiving it. However, something you might want to note is that registered mail can be really troublesome for businesses or busy individuals who have no time or patience to queue long queues at SingPost branches. The queues there is almost always very long. Why waste your precious effort and time on SingPost when you can engage private courier services for similar or perhaps even cheaper prices?
Make the decision… make the wise decision today!