The way we deliver and receive packages are changing, especially during the pandemic which only increased demand for fast deliveries. There are two main options allowing you to meet this increased demand for faster delivery – DMS and Delivery Marketplaces. But what are the differences and how do you know which one is right for you?
If you have your own drivers then implementing a DMS will help reduce stress and time spent planning time-effective routes, as well as keeping organised and your customers happy. If you don’t have a fleet of drivers but want to improve the delivery process for you and your customers, then a marketplace is the way to go.
What Is Delivery Management Software (DMS)?
Delivery Management Software (DMS) is a tool used by businesses to streamline the delivery process. This technology manages bookings, optimises routes, offers real-time tracking and proof of delivery. It’s built to take the stress away from business owners, who are under a lot of pressure as it is, and also improve business operations by saving time and money.
What Is A Delivery Marketplace?
A marketplace is an online platform that assists the businesses and consumers by connecting them to couriers and delivery drivers in the local area. These drivers can complete that business’ deliveries or help the consumer by picking up and delivering what they’ve bought. It’s similar to an app or e-commerce website that connects buyers to sellers for specific goods or services. For example, Zoom2u is a platform that connects businesses to independent couriers all over Australia.
DMS vs Marketplace: Who To Choose
Business Size
DMS is not only for businesses that specialise in delivery, but also for plumbing, cleaning services, appliance repairs, etc. DMS is all about helping you manage your drivers and increase efficiencies in your business by arranging your bookings, optimising routes and providing proof of delivery. It’s perfect for small and midsize businesses all the way through to large organisations with plenty of features to improve the delivery process from start to finish.
Marketplace platforms, like Zoom2u, can act like DMS for businesses without drivers. It’s all about connecting you with local drivers to help you deliver a product. This platform is available to anyone, not just businesses.
Delivery Speed
Both DMS and Marketplace offer similar delivery speeds, including same day and 3 hour delivery windows. The main difference is that the marketplace could be quicker for unplanned and ad hoc deliveries.
Visibility
Both DMS and Marketplace can vary in the amount of visibility they offer you and your customers. You will have to do your research to find the one that is right for what you need to be confident your deliveries are being completed on time.
A DMS like Locate2u and Marketplace like Zoom2u both provide full visibility of deliveries including live location, updates on delivery status, and a quick way to contact the driver, so you’re never out of the loop.
Customer Experience
Finally, to provide a quality customer experience, which is key for most businesses, a good DMS and a good Marketplace are very similar in what they can offer.
Both provide accurate ETAs that update along the journey, a live tracking link for the customer, as well as proof of delivery photos, e-signatures and whatever else you need.
If your customers don’t have visibility on their delivery or if they miss the delivery they’re going to be frustrated, so making sure your DMS provider or Marketplace offers these features is key to keeping your customers happy.
The End Result
As you can see, it’s not about whether DMS or Marketplace are more reliable than each other but rather how they accommodate your delivery requirements.
If you have your own drivers then implementing a DMS will help reduce stress and time spent planning time-effective routes, as well as keeping organised and your customers happy. If you don’t have a fleet of drivers but want to improve the delivery process for you and your customers, then a marketplace is the way to go.
About the author
Founder and CEO at Zoom2u & Locate2u (ASX:Z2U). Steve has significant software development and entrepreneurial experience. Operating in the delivery space for more than 15-years, he actively contributes to the development of the industry. He has a strong focus on job management and job despatch systems.
