The main objective of any international courier service is to provide its customers logistic services anywhere in the world. In order to provide logistic service throughout the world they may have to get associated with courier services of other countries. When they do so, they utilize their experience and the network of the other courier service, thus benefiting both.
Such a partnership was recently announced in Business Standard where Vakrangee declared that they were into partnership with Aramex India with their wholly owned subsidiary VLPL. With this partnership, they expect to broaden their offerings to their customers in the mainland of India.
You can find out that there are many other such partnerships going on in the business of international courier. Now, the question that arises, are they really beneficial or is it just a business tactic which may increase the overall cost of logistics?
Need for a partnership
Before you can explore whether such partnerships are beneficial, you must understand why such partnerships occur. Are these partnerships a way for increasing the total area covered under the network of the courier service provider, or is it something much more than that?
Naturally, the main aim of getting a partner in the courier service business is to increase the network but along with that there are certain formalities that can be reduced when you partner with courier services of another country.
Like, when you are establishing courier business in another land, you have to abide by the different legal formalities of that country. It is natural that these formalities will be simpler for a company whose base is in that particular country than it will be for a company that is exploring a foreign land. Thus, by partnering with a courier service provider in the country you want to expand your business, you ease out the legal formalities.
Moreover, the overall cost of setting up the logistics business in another country will be too high, and you will have to charge more from your customers. Now the question arises as to whether you can succeed in this competitive world by charging more to your customers, even if you provide the best service? In fact, you have to provide good services at reasonable rates. Thus, your partner will be your solution for setting up the whole new network.
Is it really beneficial
Now, let’s think from your perspective. Is such partnership beneficial for you?
For this, you need to understand what to expect from international courier services. When you are using an international courier, you are expecting that you can send couriers to any part of the world. Now, this is possible only because they are associated with different courier services throughout the world. They will utilize their different channels in different countries to send your parcel to its destination.
In all this, all you have to do is book the parcel and wait until it reaches its destination. Thus, in that sense they are beneficial for your business.
To end on a good note, it can be said that such associations have made logistics good, and you can book your parcel to almost any destination in the world.