The importance of capillary distribution for your company

Capillary distribution is a very old concept, but more relevant than ever. E-commerce is here to stay (and, according to the indicators, continue to grow), and in the business world, few issues are as important as those concerning parcel delivery.

In this article, we will explore the main reasons why the way you approach shipping logistics is so crucial, what factors you should pay special attention to and how the innovative strategy proposed by InPost can be part of your company's future.

What is capillary distribution?

The process of transporting a parcel is divided into several stages. The last of these stages, known as capillary distribution, or last-mile logistics, is the one that involves delivering the product to the end consumer.

The term “capillary” expresses one of the main characteristics of this process: the consolidation of parcels into large volumes ceases to be the essential factor, and fragmentation into a myriad of routes takes place.

This is, at least, the case for conventional deliveries: as we will see later, there is a way to maximize the consolidation of parcels in this final stage of the logistics process, with all the benefits that entails.

The problems

The expression “the last-mile problem” has become a buzzword in the business world, expressing the disproportionate amount of costs, problems and inefficiencies associated with capillary distribution.

It is typically the most expensive and most time-consuming stage of the logistics process, as well as being vulnerable to delays and setbacks. It is also the most dangerous for the environment, generating the highest amount of CO2 emissions: the increase in the number of deliveries due to the growth of digital commerce is contributing to serious ecological problems, city traffic and the wear and tear of infrastructure and natural resources.

At the same time, public expectations are ever higher, and statistics show that this is a critical stage for how the customer evaluates their experience.

The importance of capillary distribution for your company

These are 5 key points that demonstrate the effect of the parcel delivery process on the operation and results of your business.

1. Costs

Like any other commercial operation, distribution represents an expense of money, work and time. A more efficient process has a direct impact on the company's results, as well as on the prices it can charge. Consumers are especially sensitive to transport costs, which is why many companies choose to offer shipping on purchases above a certain amount.

2. Satisfaction

Statistics show that the delivery process has a strong impact on customer satisfaction and loyalty levels. This impact has to be considered from all perspectives: delivery times and delays, price, convenience, the condition of the delivered item, etc.

3. Reputation

Good delivery service affects a company's image among the public in various ways. One of them is the very basic fact that, for many online companies, the only face-to-face contact with the end consumer is through the carrier: it is important that they project an image of professionalism.

4. Reach

With digital commerce, geographic barriers have lost relevance, and the territorial reach of a business depends mainly on being able to get products to a given place quickly. This also means that geographic expansion is easier today than ever before.

5. Sustainability

The growing public awareness of current environmental problems makes concern for sustainability not only an ethical issue, but also a good business idea. The logistics sector has a major impact on annual CO2 emissions, and reconsidering the way we deliver parcels is part of the path toward a cleaner future.

InPost: the right solution for capillary distribution in the modern world

The parcel shipping process is fundamentally important for today's companies. A well-designed approach to capillary distribution results in efficiency gains and potential reductions in costs and time, greater customer retention and increased sales, a better reputation among the public and even a more ethical and sustainable operation.

InPost offers a solution for your capillary distribution needs that combines experience and reliability, a focus on customer satisfaction and a distribution strategy that meets the needs of today's markets. Non-home delivery, through our extensive network of pickup points, provides an excellent price-quality ratio, an extremely convenient system for the recipient and an important environmental solution.

Visit our website to find out more about everything InPost can do for your company and contact us today.