A Proposed outsourcing model for pick-up and delivery processes

Abstract

In the last few years, we have been active participants in globalization and the rapid growth of online commerce. This trend directly impacts logistics, postal, and courier companies. Challenges are visible in the growth and development of these companies, as well as quality of task execution and the ability to adapt to market conditions. With the impact of the SARS-COV-19 virus on the market, and due to locks during the pandemic, shoppers were forced to buy products online. This effect accelerated the trend of purchases via e-commerce, which increased the number of parcels in the technological phases of pick-up and delivery. These companies are the bearers of the first and last technological phase of shipment transport. Due to the increase in the number of shipments, postal and logistics companies are under great pressure. This is because of certain restrictions introduced during the pandemic, but also because of costs, especially fixed costs in the first and last phase of transport. This paper proposes an outsourcing model for the pick-up and delivery to convert fixed costs into variable ones.