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1. TOP 7 MISTAKES
TRANSPORTERS
MAKE ON
E-COMMERCE
LOGISTICS OPERATIONS

2. Maybe you’ve heard about the
e-commerce logistics gold rush…
And you’re excited to get on board!

3. We’ve compiled a list of
mistakes transporters make
when trying to ride
the e-commerce logistics wave
so avoid them at all costs!

4. #7: Dinosaur tech
in the age of
the internet
A base level of technology is required
to compete in the current e-commerce market.
If you can’t provide visibility into your
delivery operations, or don’t have
e-POD or signing capabilities, big players like
Lazada,Zalora and XiaoMi are simply not going
to consider you as a potential service provider.
“Windows 10? No thanks, Windows XP works fine for me!”

5. It’s actually very costly to try and do everything
for everybody. But in the early days,
it’s pretty hard to say no.
If you can find your logistics operations niche
early and focus on delivering the best service to
your chosen target market, it’ll be a lot easier to
provide great value with a much smaller fleet.
“All our consignees get a free coffee with their deliveries!”
#6: Trying to
provide all kinds
of logistics services

6. Same-day delivery seems to be all the buzz,
but it may not be quite worth the effort
in every industry.
In supply chain theory, there is always a trade
off between ‘responsiveness’ and ‘efficiency’,
and markets prioritise each differently.When
carving out your niche, make sure you find one
that provides a scalable and sustainable
advantage over time.
“If we cancel weekends, we can increase productivity by 40%"
#5: Promising
the moon

7. Underpricing is a tactic that benefits nobody.
Rather than lowering prices, build your price
into your story – what kind of reliable,
quality service are you known for?
To keep your costs down, try leveraging on
technology (read: a goodTMS) to get
an edge over your competitors.
The finish line of the race to the bottom is the bottom.
#4: Racing to the
bottom

8. Reputation is everything in this industry – what
takes years to build can be destroyed in minutes.
One of the biggest customer-sided mistakes
you could make is not knowing the status
of your own delivery operations, and having to
hear the worst from your customers. Make sure
you have in place a system that provides
delivery statuses updates automatically.
“All our neighbours have moved.
What’s this rumor about a meteor crashing?”
#3: Being the last
to know the worst

9. Every organisation has its key personnel – that
one person who seems to be able to do
everything.
As natural as it seems to build your company
around your most valuable people, try to build
in some redundancy in the system. Give other
team members a chance to try dispatch
scheduling and route planning.
If you want something done, give it to a busy person.
#2: Over-reliance
on key personnel

10. Investing in customized, stand-alone software is
by far the biggest mistake that a new transporter
can make. Always remember that you are in the
logistics business – not computers – so you
you should not have to concern yourself with
investing in servers and software maintenance.
However, there’s no need to re-invent the wheel.
Tap on a proven service provider who has the
right software just off the shelf.
“So, because all our trucks have at least 4 tyres,
buying this tyre factory will save us…$1M dollars!”
#1: Trying to build
it all in-house

11. Being a successful e-commerce
transporter is not easy.
Don’t make it harder by
repeating common mistakes

12. VERSAFLEET.CO