E-commerce, as an industry, has encouraged several ancillary businesses as well. The courier service industry is one such sector which has witnessed immense growth post the e-commerce boom. As the volume of deliveries rose, the need for courier management software also emerged. It is in this context that major courier companies resorted to courier delivery software and logistics software.
Though the courier management software does play a critical role in synchronizing the work process, improving the overall management of the logistics, and eventually leads to better customer engagement – there are a couple of challenges which vendors of this software are fighting to overcome.
Inherent challenges faced by courier companies
While the cost of the software along with its interoperability, and scalability are major factors which courier companies consider before choosing a courier management software – threat from the open source software along with high maintenance costs are some of the inherent challenges which this industry faces.
GitHub along with Parcelhub offer some of the most popular open source courier management software. As this software can be easily downloaded and run on almost all platforms with minimal capital investments, small scale courier companies prefer them over the standard courier management software. Especially in emerging economies like China and India, the popularity of open source courier management software has dampened the demand for specialist courier delivery software.
A typical courier management software includes costs of software licensing, system design and customization, implementation, training, and maintenance. Though this cost might be negligible for major players in the courier service industry, for small and mid-size courier companies, the cost is quite high. Often, these firms are not able to hire dedicated IT staff or keep upgrading the software. This situation serves as a major roadblock in the quest for high adaptability of the courier delivery software.
Also, surprisingly, there are still many courier companies which are unaware of the benefits of switching to these courier and logistics software. And, many current users aren’t equipped enough to manage the software in a way which will provide them an edge over their competitors. It is important that vendors of the courier business software educate and train the end-users about the former’s proper usage, so that not only is there an increase in the adoption of these products, but the courier companies get to enjoy the much-needed advantage emanating from the usage of such software.
Will the inherent challenges dampen the growth of the courier management software market?
The assumption that challenges faced by this industry will have a negative impact on the overall growth of the product is surely quite far-fetched. No doubt these are issues which demand immediate attention, yet as the e-commerce industry grows and international trade becomes an everyday affair, the demand for courier management software is sure to witness a rise. In fact, industry analysts expect the global market for courier management software to record a double-digit CAGR through 2017-2021. Also, as companies are working towards an efficient and transparent supply chain, it is essential that solutions like logistics software and courier delivery software be adopted on a full-time basis.
