Let the battle commence
Page 18
Page 19
If you've noticed an error in this article please click here to report it so we can fix it.
The parcels sector is cut-throat, and you need to move fast to stand out from the crowd. Has a recent run of delivery innovations sparked a parcel war among operators?
joanna.bourkefarbi.co.uk
PARCELS ARE A lucrative business. As more and more retailers sell goods online, the number of customers purchasing products off the web is naturally increasing too.
However, a report by consultancy Snow Valley into online retail deliveries, published at the beginning of the year. reveals the rate of improvement in online retail delivery services over the past four years has not been fast enough. According to its survey of consumers, 64% of e-retailers provided a choice of delivery times and charges in 2009, up from just 54% in 2005.The need for timed deliveries is also substantiated by research from telematics firm Trimble. It predicts that by 2011, a majority of major suppliers will be competing to offer the narrowest delivery slot.
'nimble MD Andrew Yeoman says: "Minimising appointment times to with
in a oneor two hour timeframe should be the goal for a service delivery company, and would reduce customer waiting time considerably, allowing people to get on with their normal day."
Fierce competition
Chris Pearce-Ramwell, MD at consultancy CPR Logistics, adds: "There is a huge amount of competition from traditional mail carriers who see a decline in letters, but a rising trend for packets and parcels. Operators need to start watching these rivals and ensure they segregate themselves as stronger."
Parcel network APC Overnight is keen to expand its delivery timeframes in response to customer demand. MD Ivor Skinner tells CM the firm is looking to expand into early evening alongside its morning and afternoon deliveries.
However, he attributes double-digit volume growth from May 2009 to May 2010 to the company haying a reputable name. "We handle everything with care. Most cargo is moved in cages and any breakages are minimal. I believe as well as having a choice of delivery times, clients want to have a trusted and reliable transport partner," he says.
Geography has also played a key part in winning business according to CitySprint. The company has acquired live courier businesses in 17 months, and it has not ruled out more purchases this year. It believes this widening coverage in the UK makes it a fierce competitor to its rivals.
There is a lot of business out there to be won, but all parcel carriers questioned by CM agree that although innovation is essential to survive, adapting for change must never come at the loss of service. •