Lean and smart delivery through Crowdshipping

Luggage Pool
02 February 2021
Shipping Business

Lean And Smart Delivery Through Crowdshipping

The crowdsourced ad-hoc drivers and travelers can revolutionize crowdshipping by making last-mile deliveries more cost-effective with reduced vehicle miles

Summary

Crowdshipping refers to the concept of crowd-sourcing of services for personalized delivery of freight. Common people belonging to a community network are turned into couriers and act as informal logistics networks for the distribution of small parcels. It uses networking platforms and provides a means of enlisting people who are  traveling from one place to another.

Travellers take a package along with them and usually drop it off at a place where they halt during the journey. Crowdshipping being an on-the-way delivery network allows the delivery of packages and even occasionally large items transportations between European countries at very low marginal cost, in economic and environmental terms, by people who can earn some extra money and, possibly, also enjoy the satisfaction of supporting their local neighborhood.

Crowdshipping in Europe can be viewed as an example of people using social networking to  collaborate and share services and assets for the greater good of the community as well as their own personal benefit.

 
Lean and smart features of crowdshipping

There are many different stakeholders who can potentially benefit from crowdshipping systems. Usually the benefits accrued are shorter delivery times, cheaper delivery costs, and increased flexibility and accessibility making it an ideal lean and agile compared to the traditional logistics systems.

Retailers too can have multiple delivery options and spend less on delivery. They can also expand their customer base by attracting more customers due to the better quality of delivery services. Well deployed strategies can thus transform crowd shipping into a smart service system by reducing traffic congestion, harmful emissions, and even accidental mishaps as well as an increase in employment opportunities.

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Crowd shipping industry is still a relatively new one and facing plenty of challenges. It becomes imperative to mitigate these challenges by a proper understanding of every stakeholder's perspectives and particular preferences including their behaviors.

As of now, not many people are familiar with crowd shipping or have actively participated offering limitless opportunities to crowd shipping platform service providers subject to attracting more and more users on these platforms and showcasing fastest parcel shipping in Europe.

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Essential criteria of crowdshipping platforms

The crowd shipping online platforms generally have six major criteria such as

1. Customer base: All types of deliveries can be catered by an online crowdshipping platform including customer to customer (C2C), business to customer (B2C), customer to business (C2B) , business to business (B2B). The extent of  influence of these four types of businesses on the CS platforms normally dictate their business model, operation and future growth prospects.

2. Mode of Travel: Deliveries are normally done while someone goes on a trip. Specifically designed trips are also arranged for delivery. A traveller normally deviates from his/her normal route to collect and/or deliver a package. Online platforms vary in their dependence on trips of these varying natures.

3. Type of Goods Commodity: Crowd shipping platforms normally accept almost any non-hazardous legal products letting  individual couriers to decide how big and heavy a consignment they wish to carry.

4. Pricing: The customer enters details of the parcel, its origin and destination and sometimes the maximum amount they are prepared to pay for delivery. Prospective couriers then quote for the work with delivery time and cost. The customer then decides which bid to accept.

5. Transport Mode: The transport port is decided by the crowdsourcing platforms be motorized, air etc.

6. Distances Covered: While some platforms only operate in urban areas within 15/ 20 miles, many have global ambitions on a city base e.g. parcels sending between European countries.

 

Many studies have confirmed that the crowd-  sourced ad hoc drivers can revolutionize crowdshipping in Europe by making last mile deliveries more cost effective with reduced vehicle miles.