9 Essential Benefits of Using Courier Management Software

Introduction

Running an eCommerce business involves juggling many moving and challenging parts — marketing, customer acquisition, customer nurturing, managing delivery operations, solving customer complaints, and the trickiest among all, handling the challenges of courier management. 

If you are a mid to large-sized business handling over 1000 orders each day, these challenges grow even bigger. You are probably facing delayed delivery issues due to inaccurate order tracking, juggling multiple carrier partners, encountering delivery failures, or drowning in an ocean full of WISMO queries.

But with courier management software, you can manage all these issues to a great extent and create an unforgettable post-purchase experience for your shoppers. 

In this article, we’ll give nitty-gritty details on what courier management software exactly is and some of the greatest benefits that make it a must-have in your tech stack. 

First, Let's Explore What Courier Management Software Is

Courier Management software (also known as delivery management software or shipment management software) is a SaaS platform that helps manage and automate the entire logistics process. These tools are designed to tackle tasks in the delivery process like order management, order processing, real time tracking, shipping exception management, and more. 

The idea behind investing in a courier dispatch software is to optimize the entire shipping workflow, so you can ensure max cost savings and ensure you get the most from courier companies. You can enable delivery scheduling and use route planning to ensure successful completion of orders within the designated delivery windows. Monitor the service quality of your partnered courier businesses , maintain up to date information on courier services, and make informed decisions to ensure successful deliveries.

Top 9 Benefits of Using Courier Management System You Need to Know

According to a research report by The Insight Partners, the market size of courier management systems is going to reach $1691.57 million by 2031. This report clearly indicates the growing demand for courier management software. 

But what is so special that companies rely on this tool? In this section, we’re going to look at the top 9 benefits of investing in a courier management system. Let’s get started! 

1. More streamlined delivery operations

Managing multiple shipments across different carriers is challenging. Different companies work under varying shipping rules, policies, and processes. Every provider has its own standard for packaging, order creation, tracking, and shipment management, and keeping up with them is a complex process. 

A Courier Management System (CMS) comes pre-integrated with numerous carriers and offers a unified API for it. Consequently, businesses can print bulk shipping labels across carriers, monitor shipments on a centralized dashboard, and manage shipments sent through different carriers — all without much back and forth. At the same time, it reduces manual intervention which is quite error-prone and time-consuming. This means that with a CMS, you can automate the entire process and make it more coordinated. 

Brands like Amazon, Shopify, and Walmart rely on multi-carrier courier management software to ensure the efficiency of the entire logistics process. 

2. Improved delivery rates

A courier management software is designed to improve order fulfillment rates. It offers features such as route optimization, automated tracking, automated dispatching, failed delivery management, etc to ensure each order reaches the end recipient on time without any errors.

To put it more specifically, the route optimization feature identifies the most optimal route without traffic congestion and geographical constraints. On the other hand, the NDR (Non-delivery Report) management feature coordinates the delivery agents with the customers to make a failed delivery successful. 

DX Group, a leading logistics provider in the UK, achieved a spike in delivery rate (40 million shipments daily) after using a courier management system. 

3. Optimized checkout experience

When you integrate your storefront with a courier management solution, you can enhance customers’ checkout experience on many levels. First off, it shows various shipping options with their associated shipping charges, whether it’s standard shipping, two-day shipping, or same-day shipping. Customers can choose any of them at their convenience and control when they want to receive the parcel. 

One of the best references for this is Amazon’s checkout process. Along with offering standard shipping services, it also provides customers with the flexibility to choose the two-day shipping option at an additional cost. 

Moreover, a delivery management solution allows you to display expected delivery dates in real time as soon as customers enter their zip codes. This level of flexibility not only improves customers’ shopping experience but also boosts your conversion rates. Hopscotch has achieved PDP (Product Display Plage) conversion rates by 5% after optimizing its checkout page through a courier management system. 

4. Real-time monitoring of shipments

As courier management systems are already integrated with multiple carrier providers, they offer real-time updates on shipments' whereabouts on an integrated portal. This means you don’t need to juggle multiple platforms to get shipment updates and do live tracking, which further saves you time to monitor deliveries. 

Oftentimes, these CMS systems offer tracking webhooks. If you opt for it, you will get automated updates on your systems. This level of transparency helps you better manage all shipments, reduce customers' WISMO (Where-Is-My-Orders) calls, and proactively take action on stuck shipments during last mile delivery. The White Willow, a well-known pillow brand, reduced WISMO calls by 56% through ClickPost’s tracking system and automated customer communications. 

5. Optimized delivery costs

With a courier management platform, brands can reduce shipping expenses to a great extent. Wondering how? First off, its route optimization feature helps find out the most suitable route that will help you save on fuel costs. 

Most shipment management software like Shopify Shipping offers pre-negotiated shipping rates (up to 77%-88%) on carriers like FedEx and DHL to optimize delivery costs. In fact, these systems conduct rate shopping to help you choose the most cost-effective carrier partner for your business. Additionally, they take care of failed shipments, so you can avoid extra costs related to reverse logistics.  

6. Out-of-the-box customer experience

According to a recent study by emplifi, around 81% of customers are likely to leave a brand after facing just two poor experiences. This means that it is one of the main things you can’t negotiate with and delivery is the one aspect that mostly influences eCommerce shoppers’ experience. 

However, courier management software helps in this case as well. It offers them on-time delivery alerts, provides delay notifications on priority, eases their shopping experience, and offers them multiple delivery options. In a word, it creates a sense of control in their minds that further makes them feel prioritized. Arvind Fashions, a leading Indian apparel brand has significantly reduced WISMO queries after using a courier management system.

7. Reduced number of failed deliveries

Even if you build a solid shipping strategy, you may still face last mile delivery exceptions and failed deliveries. Since shipping exceptions mostly depend on external factors, they are bound to happen. However, how you deal with these failed delivery cases matters at the end of the day. 

With a courier management system, you can efficiently tackle these failed deliveries to ensure a lower RTO (Return to Origin) rate. Once a failed delivery occurs, it consolidates them on a centralized portal, so brands can take immediate action. Not only that, but it also connects customers with specific queries to understand the reasons behind those NDR cases. Next, it helps delivery agents take action accordingly to make a delivery successful. 

Take the example of DaMENSCH, a men’s fashion brand. It has reduced its RTO rate by 54% with a courier software solution’s NDR management system.

8. Boost in post-purchase sales

A courier management system also plays a great role in driving repeat businesses. With features like on-time delivery alerts, easy returns management solutions, and proactive delay alerts, it creates a sense of trust and loyalty among shoppers that make them long-term retainers. 

Plus, it provides customers with a branded tracking page where you can display tailored product recommendations and the latest offers to win their impulse buys. True Classic, a men’s fashion brand, has driven a 29% increase in revenue by sending post-purchase emails via courier management software. 

9. Data-driven Insights

Delivery management solutions provide real-time insights into various aspects of the logistics journey. These include RTO reports, NDR feedback reports, carrier performance reports, customer notification reports, and more. These in-depth insights help businesses identify potential gaps in operations and strategize them in a better way. For instance, ClickPost has enhanced operational efficiency by up to 22% for businesses with comprehensive analytics. 

Boost Delivery Efficiency with ClickPost

ClickPost is an AI and data-first logistics intelligence platform that comes integrated with 500+ courier providers worldwide and helped over 450+ brands like Meesho, Nykaa, and Puma improve their shipping operations. 

ClickPost has offered a number of advanced functionalities under its product package that make it one of the most well-known courier management systems available in the market.

Final Words!

Consider a courier management system a magic weapon that eliminates the complexities of logistics and makes it smoother with a flick. You already saw how. Now, it’s your turn. If you search on Google, you will get numerous solutions that preach to be the best courier management systems available on the market. Take your time to evaluate your needs, budget, and the key features of a platform, and then make the right decision. 

However, you can also give ClickPost a try by booking a demo with us to check how it can elevate your logistics game.