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What factors to consider when setting up dispatching rules?

At Orkestro, we know that choosing the right couriers and vehicles can have significant consequences on the efficiency and productivity of your business. Here are five things you should consider:

  • Cargo Capacity
  • Basket Value / Minimum Delivery Fee
  • Delivery Radius
  • Nature of items
  • Courier Operating Model


⭐️ Cargo Capacity:
Each courier may offer one or more vehicle types for delivery services and the cargo capacity on each vehicle offered can differ between couriers. In the table below, you will find the standard* cargo capacity offered by most couriers.

Vehicle

Width (cm)

Depth (cm)

Height (cm)

Weight (KG)

Bicycle

30

10

21

1

Motorbike

50

30

28

5

Car

60

42

48

20

Small Van

112

103

180

500

 

*If your items require a larger carrying capacity of a particular courier's fleet, you risk a reduction in reliability should that fleet's performance be lower.

⭐️ Delivery Radius:

When dispatching your orders, Orkestro will allocate suitable vehicles based on your dispatching preferences and the limitation of certain vehicles. Smaller vehicles such as bicycles and motorbikes will typically have a limit on the distance they can travel and their reliability and availability reduce for longer distances. Although large vehicles may sometimes cost more than smaller vehicles, setting a minimum delivery fee based on distance or other factors can help offset the cost of your deliveries. Please refer to the guide below for more information about the different vehicle types and their preferential distances.

Vehicle

Ideal Range

Best For

Bicycle

0 KM - 5 KM

Dropoff Locations within 20 minutes (cycling time)  of the pickup location

Motorbike

1 KM - 15 KM 

Dropoff Locations within 30 minutes (driving time) of the pickup location

Car

5 KM - 30 KM

Dropoff Locations within 2 hours (driving time) of the pickup location

Small Van

5 KM - 30 KM

Dropoff Locations within 2 hours (driving time) of the pickup location

 
⭐️ Basket Values / Minimum Delivery Fee:

Typically, the larger the order value or the larger the number of items to be delivered → the larger the vehicle required. However, this may often vary depending on the size or packaging of the items. Some items such as jewellery may have a high basket value but due to their small size, they can be transported using smaller vehicles.

⭐️ Nature of Items:
The nature or fragility of the items should be considered when selecting vehicles. For example, transporting fragile goods will often require cars or small vans due to the limited cargo capacity and possibility of damages occurring during transit on smaller vehicles. Drivers of certain vehicles such as bicycles and motorbikes can sometimes refuse a delivery if it contains fragile items or alcoholic items (based on religious beliefs).

⭐️ Courier Operating Model:
A courier’s operating model plays a significant role in determining both the cost and the reliability of their services. Couriers typically operate in one of two ways:

  • As an employer of drivers
  • As a marketplace for drivers


Couriers as Employers: They directly employ their drivers and allocate jobs to the drivers depending on the driver’s availability. Typically, the drivers are obliged to complete any job they are assigned. The drivers are considered employees of the courier, and they are typically reliable. However, they are sometimes relatively more expensive than some other couriers. These drivers are often vetted by the courier. Some of these couriers include Addison Lee and Crawfords.

Couriers as Marketplaces: They do not directly employ their drivers so the drivers are considered “freelancers”. Drivers sign up to their platform, the couriers place jobs in their internal marketplace and invite drivers to take up and complete the jobs. These couriers are often cheaper than most other couriers. However, the drivers are allowed to accept and reject jobs they may no longer be interested in fulfilling (even after arriving at the pick up). This can result in excessive delays if the courier is unable to reassign the job to another driver willing to complete the job. Since the drivers are not considered “employees”, there is also poor vetting of the driver. Stuart is one of the largest courier marketplaces in London.

Please note, these could be different if you have an SLA in place with a courier. In this case dispatching rules will be determined in the SLA.

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