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Operations8 min read

How to Manage Multi-Branch Courier Operations Without Losing Control

One branch runs on the owner’s memory. Three branches need a system. Ten branches need a system everyone follows the same way.

Logxa Team

Logistics software insights

Opening a second branch is one of the most exciting steps for a courier company — and one of the riskiest. Parcels now travel between locations, cash is collected in more places, and managers who used to see everything now see only their own floor. Problems that were small inside one depot become expensive across a network.

This guide covers how growing courier companies structure their branch network and keep parcels, money and performance under control.

Design the network before it designs itself

With a few branches, it’s tempting to run trucks directly between every pair. That stops scaling quickly: the number of lanes grows much faster than the number of branches.

Point-to-point: 15 lanes ABCDEF Hub-and-spoke: 6 lanes HUBABCDEF
Six branches need n × (n − 1) ÷ 2 = 15 direct lanes, but only 6 lanes through a central hub.
How lanes grow with branches
5 branches, direct5 × 4 ÷ 2 = 10 lanes
10 branches, direct10 × 9 ÷ 2 = 45 lanes
10 branches, via one hub10 lanes
Rule of thumbAdd a hub once direct lanes run half-empty

Most networks end up as a mix: direct trucks on the two or three busiest lanes, and everything else through a hub. We looked at when to add hubs in an earlier article; here we focus on running the network day to day.

Give every branch a clear territory

  • Assign delivery zones to branches. Every postcode or area belongs to exactly one branch. When a booking is made, the system knows the origin branch (who collects) and the destination branch (who delivers).
  • Print the destination branch code on the label. Sorters should be able to route a parcel without reading the address.
  • Decide who owns the customer. Usually the branch where the account was opened — that matters later for revenue and credit control.

Follow one parcel through the network

1
Booked
Origin and destination branch known
2
Collected
Driver scan + photo
3
Scanned in at origin
Weight and size checked
4
Bagged by destination
Bag tag + seal number
5
Linehaul manifest
Bags dispatched on a vehicle
6
Received at destination
Manifest reconciled bag by bag
7
Delivery job created
Only now assigned to a driver
8
Delivered
POD, cash recorded
9
Settled
Revenue and COD split between branches
Every hand-over is a scan. A parcel without a scan at a step is a parcel nobody is responsible for.

Scan points and what each one proves

Scan pointWho scansWhat it provesException it catches
CollectionDriverWe have the parcelBooked but never handed over
Inbound at originBranch staffParcel is in our building; real weight and sizeUnder-declared weight, damaged on arrival
Into bagSorterParcel is going to the right branchMissorts
Bag onto linehaulLoaderBag left on a specific vehicleBags left behind
Bag receivedDestination staffBag arrived, seal intactMissing bags, tampering
Parcel out of bagDestination staffEach parcel arrivedMissing parcels inside a bag
Out for deliveryDriverDriver took responsibilityParcels sitting on shelves
Bag scans turn hundreds of parcel scans into a handful — but only if parcels were scanned into the bag correctly.

Fast bulk scanning with phone cameras or hand scanners keeps this practical; if scanning slows staff down, they’ll skip it when it’s busy, which is exactly when you need it most.

Run linehauls on a timetable

Ad-hoc trucks “when there’s enough” make delivery promises impossible. Publish a schedule and cut-off times, and plan your sorting around them.

LaneDepartsArrivesOrigin cut-offDelivery promise
Branch A → Hub19:0021:3017:30—
Branch B → Hub19:3021:0018:00—
Hub → Branch C02:0005:3023:30 at hubNext day
Hub → Branch D01:0006:0023:30 at hubNext day
Hub → Branch E (remote)02:0009:3023:30 at hubNext day, afternoon
Example overnight network. Delivery promises follow from the linehaul timetable, not the other way round.

Reconcile every manifest

A linehaul manifest lists every bag (and every parcel in it) on a vehicle. The receiving branch checks what arrived against it — immediately, not at the end of the week.

Receiving a linehaul at Branch C
Bags on manifest42
Bags received41
Missing bagC-0912 (seal 448210, 23 parcels)
Parcels expected in received bags611
Parcels scanned out of bags609
Exceptions to resolve today1 bag + 2 parcels
Each exception goes to a named person with a deadline. Unresolved exceptions are where losses and claims come from.

Split revenue and cost between branches fairly

A parcel booked and paid at Branch A but delivered by Branch C earns money for one and costs money for both. Without an agreed split, branch P&Ls are meaningless and managers argue about who should take which jobs.

Example revenue split for one parcel
Price paid by customer at Branch A$12.00
Origin share 40% (sale, collection, sorting)$4.80 → Branch A
Linehaul share 20%$2.40 → Network / hub
Destination share 40% (sorting, delivery)$4.80 → Branch C
Each branch is measured on its share
Some networks use a fixed transfer price per parcel instead (for example $3.50 paid to the delivering branch). Either works if it’s agreed and applied automatically.
Branch P&L (monthly)Branch ABranch C
Origin revenue$46,800$21,600
Destination revenue$28,200$41,400
Driver and vehicle costs− $38,500− $40,200
Branch staff and rent− $17,000− $13,500
Branch contribution$19,500$9,300
With a split in place, you can see that Branch C is a delivery-heavy branch with thinner margins — and decide whether it needs more local sales or better routes.

Settle cash and COD between branches

Cash on delivery is collected by the destination branch’s drivers but owed to merchants who are usually customers of the origin branch. Treat COD as a liability that moves through the network, not as branch income.

  • Each branch reconciles its drivers’ cash daily and deposits it the same or next day.
  • COD is paid out to merchants centrally, from a single statement per merchant across all branches.
  • Inter-branch balances are netted weekly, so branches don’t transfer cash back and forth for every parcel.

Give people the access they need — and no more

RoleSeesCan do
Head officeAll branches, all reportsRates, users, settings, payouts
Branch managerOwn branch, inbound to own branchDispatch, staff, branch reports
Hub staffParcels and bags at the hubScan, bag, manifest
DriverOwn jobs todayPickup, deliver, record cash
CashierDriver cash and CODHand-overs, deposits
Branch-level roles and permissions keep data clean and reduce mistakes, not just fraud.

Proper users and permissions also make it easy to see who did what — every scan, change and payment tied to a named user.

Standardise, then let branches compete

  • One set of statuses. “Out for delivery” must mean the same thing in every branch.
  • One rate structure. Branches may have local promotions, but zones, services and surcharges come from head office.
  • Written procedures for receiving, bagging, failed deliveries, damaged parcels and cash hand-over.
  • A shared scorecard, so branches can compare themselves fairly.
Branch KPIWhy it matters
Parcels scanned in on time vs cut-offLate scans miss linehauls and break promises
Manifest discrepancies per 1,000 parcelsMeasures sorting and loading discipline
First-attempt delivery rateDrives cost per delivery and customer satisfaction
Parcels older than 48 h in branchFinds stuck and forgotten parcels
Driver cash varianceMeasures cash discipline
Branch contribution marginShows which branches create value
Review weekly with all branch managers in the same meeting.

Common multi-branch mistakes

  • Each branch keeping its own spreadsheet, so head office never sees one true number.
  • No scan at bag level, so a missing bag is only discovered when customers complain.
  • Delivery jobs created before parcels arrive at the delivering branch.
  • No revenue split, so every branch manager believes they subsidise the others.
  • COD held at branches for days instead of being reconciled and deposited daily.

Courier companies that grow through branches successfully usually make the same decision early: one system across the whole network, with hubs and linehauls built into the parcel’s record rather than tracked on the side.

Put these ideas to work.

See how Logxa handles this in a 30-minute walkthrough tailored to your operation.

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