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Parcels firms fight back

29th March 1990, Page 8
29th March 1990
Page 8
Page 8, 29th March 1990 — Parcels firms fight back
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Which of the following most accurately describes the problem?

• A national network of 135 courier firms is being established to compete against the big names in the cut-throat express parcels market.

Based in London, National Courier Network will be able to draw upon a fleet of more than 2,000 vans, cars and motocycles, and a staff of 2,700 to provide same-day and next-day guaranteed parcels services. It is due to start operating on 9 April.

General manager Mark Lurmon-Wood says the company will operate a 'Datapack Service', designed to appeal to computer companies, advertising agencies, and film and television companies, in which any delivery under 5kg will be delivered next-day by 10:30hrs for about £10.

All the NCN vehicles are radio-linked, and the company has developed what it de scribes as a "varied and competitive rate structure . .

with no fear of hidden extras".

The 135 member companies are not franchise holders, although 21 are shareholders. Instead, each NCN member is a courier operator in his own right who finks into NCN for national parcels movements.

The major shareholders in NCN are Concorde Carriers and Security Dispatch, which hold nearly 50% of the company each.

The remaining stock is held by member companies.

Chairman and creator of NCN, Simon Bliss, says: "We have seen the world's largest transport companies, none of which are British owned, force their way into the UK market, either by acquisition or through aggressive development. Now is the time for independent express couriers to structure their energies and resources."

Lunnon-Wood stresses that the network is now complete and no further members are needed. He says all NCN members are "independently owned and managed" but have to satisfy him that they have a good reputation, client base, fleet, and an appropriate management structure. "We want to promote a good image," he says. "It's not worth having a network of cowboys," Each NCN member will carry the corporate identity and will receive marketing back-up from head office.

NCN will specialise in the lighter end of the express parcels market. "The next-day market is 10 times the size of the same-day market," says Lunnon-Wood, It is therefore a very big opportunity. We will specialise in documents with an average weight of lkg."

Tags

Organisations: Datapack Service
Locations: London

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