If you are running a medical practice, or any particular business for that matter, then you most certainly have to handle the logistics as well. For instance, if you have a medical practice, the main part of your work will be to, naturally, take care of your patients, but the truth is that you do have some logistics to think about in that process as well. From delivering some medicine on time, or getting it delivered on time, to handling anything else that could be time-sensitive and affect the quality of your care.
Read about how to start a medical practice, if you’re just now thinking about it: https://www.tebra.com/theintake/checklists-and-guides/start-a-practice/new-medical-practice-checklist-heres-how-to-get-started
Anyway, when any business in any industry starts thinking about how to handle those logistics, they sometimes decide to do it in-house. At least in the beginning. Why, though? Because they consider the costs of paying for the fuel, the salary to the driver, as well as the vehicles, and they immediately come to the conclusion that outsourcing is the more expensive solution, and that they have to do this in-house if they want to save some money.
I get that logic, I really do. When we are presented with such obvious and straightforward costs, it is quite easy for us to automatically come to the conclusion that this is the more expensive solution, and that you should not use it to your advantage. Yet, the truth is that there are also some costs of handling the logistics in-house – costs that you may not be aware of, but that could undeniably accumulate.
All of this means that it is important for you to be aware of those hidden costs of handling this part of your work in-house. That way, you will get a better idea about how much it would all cost in the long run, which will also help you understand if you should do this, or if you should perhaps partner up with a delivery company and let them handle the hard work for you. So, without any further ado, let us come to the bottom of this and finally reveal those hidden costs that you may not have thought about by now.
There Are Compliance Burdens and Costs to Consider
First things first, when running a medical practice, for example, you will surely need to stay in compliance with some important rules and regulations. HIPAA compliance, as talked about here, is one of the things you have to think about. And then, there is the fact that your deliveries will have to adhere to certain standards in order for your business to stay in compliance.
All of this costs money, though. There are trainings that you have to pay for and certifications that the drivers need to get. Then, there are the costs of documentation management, which often requires you to have administrative staff doing it. And, of course, there is always the risk of penalties that come with not being compliant to the regulations, and those can be quite high at times as well.
You Have to Invest in Tech Solutions
In order to handle the logistics in-house, you will undeniably have to invest in some tech solutions. It is not just about buying vehicles and being done with it. You need tracking systems, route optimization software solutions, as well as regular system and security upgrades. As you may have guessed it, all of this can cost quite a lot.
And Their Maintenance
In addition to that, you will need to regularly maintain those tech solutions you’ll buy. So, you’ll have to pay for maintenance services. If you don’t, then you’ll wind up encountering some problems that could lead to even more costs, including the costs of repairs, as well as the costs that come with operational inefficiencies that stem from the technology not working well for a while.
There Are Insurance Premiums to Keep in Mind
Insurance premiums are a cost that you may not have thought about either. You have to get commercial coverage for the vehicles, as well as cargo coverage and workers’ compensation. This can add up to quite a lot. On the other hand, though, if you decide to work with GO2 Delivery or similar courier professionals, this is undeniably not a cost that you will have to think about, meaning that you will get to save some money on this. As well as on all the other costs I’ve mentioned above.
All of this means that you may be better off outsourcing the delivery logistics, and thus letting the pros handle them. In addition to the things I’ve mentioned above, you’ll also avoid staffing challenges, as well as turnover costs. When you think about it this way, and actually understand the hidden costs of doing this in-house, you will realize that partnering up with the right courier company is actually a much better idea, and a much more cost-effective one in the long run.
