Courier Business Glossary
12 terms — search by name or definition
Last mile
Final leg: hub/store to customer's door. Most expensive part — up to 50% of cost.
SLA
Service level terms: delivery time, on-time %, compensations. Basis of the store contract.
Pickup point
Self-pickup point — customer collects. Cuts last-mile cost dramatically.
Fulfillment
Outsourced storage+packing+delivery: goods live at fulfillment center, orders ship from there.
Zone pricing
Price by city zone (center/residential/suburb) — reflects actual travel time.
Courier capacity
Deliveries a courier can physically do per shift: bike 8–14, car 15–25 depending on density.
Peak hour
Max-volume hours: lunch 11–14, evenings 17–21 for food; holidays for flowers.
Batching
Bundling orders into one run — saves up to 30% but adds waiting time.
COD
Cash on delivery — customer pays on receipt. Adds refusal risk and cash handling.
Failed delivery
Customer unreachable/refused — run paid, goods return. Contract defines who pays.
Address complexity
Walk-ups, gated yards, new complexes — +10–20% multiplier to tariff.
Dispatching
Assigning orders to couriers by zone, weight, deadlines — software or human.