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.