CHAPTER - III
'(fenMeup aSaat 'ep KE^erffiee ^ertfit vuMeT'
CHAPTER - III PROFILE OF THE STUDY UNITS Couriers are basically a service for sending money or goods at some extra cost. It involves a person or a company engaged in transporting, dispatching and distributing letters, parcels and mails. In a rather layman term, it can be said that, compared to normal mail service, a courier possess many added features. A courier is much faster, safer and secured than ordinary mail. It is a specialized service with authenticated signatures. It has tracking service with each service being treated as a specific individual case. Dedicated timely deliverance is its primary hallmark. These features do cost a bit extra but with so many features available, the cost gets leveraged. The two main industries that help in bridging the gap between people situated miles apart are the telecommunication services and the courier services. These services that operate in India as well as across the domestic boundaries have been aiding us in keeping a touch with our friends, relatives, customers and business partners who may be so far that cannot be reached personally. Telecommunication services help in transfer of virtual information while courier services help in physical movement of items between two parties. Indian courier industry has been prevailing since almost two decades and evolved dramatically over time in terms of its reach and technology. Initially limiting to only the metro cities if India, it has now spread its network in many
62
rural areas as well as many international destinations. Any courier company can work on just one quality aspect, that is, safe courier delivery on time. Indian services sector for courier companies is experiencing massive expansion and cut-throat competition among the industry rivals. These companies are either diversifications of some huge Multinational companies or are stand alone big corporate houses with expertise in this area. Whatever be the case, the courier companies are trying their level best for emerging as the leader of the industry. For achieving this goal, the companies have further strategically expanded and formed associations with transporters, air carriers as well as shipping companies. Many courier companies work in association with these connections for delivering the couriers on time ensuring safety of the item being transported. Creativity and out of box thinking is the backbone for this industry. Expanding into specialization of various couriers services for specific industrial goods is the new league that many Indian courier companies are following to remain in the competition. This was a road less taken earlier, but now, courier companies are racing on it. Indian courier companies are offering a plethora of options for convenience to its customers such as online booking through the internet, online payment options, free business accounts as well as international courier services at competitive rates. India has many occasions of religious and cultural importance. The forthcoming festival of rakshabandhan can be a perfect example
63
here. Many people in India have moved away from there home for their jobs or studies. Indian courier services are helping the people in sending their Rakshabandhan gifts to their sisters and sisters sending rakhis to their brothers who may not be able to meet on the occasion. Indian courier industry has numerous huge and effective courier companies. In general a courier company performs on various scales. To begin with, it can be inter-city and intra-city. From there onwards, a courier company can work on regional, national and even international level. The largest companies in express and logic industry are UPS, FedEx, and DHL to name a few. Today the huge global companies have their own fleet of trucks and aircrafts solely for the purpose of transporting the logistics whereas the mode of operation in cities is influenced by bicycle and motorcycle. The transporting methodology involves truck owners operating in tandem with the major logistics companies. They normally cover the defined routes. As mentioned initially, courier service rates are slightly higher than the normal mail service. The rates are generally decided by the weight of the package. The heavier the parcel is, the more the charges are. To take an example, under the norm, there is a fixed charge for package weighing in the range of 500 grams. For every additional weight, the rates increase. The tariff is more for couriers which are intended for abroad. Many companies offer this service of courier to abroad. This is done through air cargos which costs more.
64
Indian parcel courier market is estimated to be in the tune of 4000 crores and it has witnessed an average yearly growth of 25%. Considering the fact that, market is expected to keep up the growth and development momentum; many international players are betting big time on Indian courier industry. This phenomenon has been manifested by the large interest shown by the courier behemoths. This has also translated into huge investments in Indian express industry. In terms of service, there is a lot to be done in the Indian market, but heartening factor is the apparent set up of the process. As this industry is more about speedy delivery and the swift, timely movement of merchandise, information and finances. Companies are synchronizing their various processes so that integration of the system and technology can take place in accordance with market demands. Courier work in India is revolutionizing the way Indian mail section used to function. The industry is changing and it's changing for the better. Indian logistic industry is in the stage of consolidation. INDIAN SCENARIO The courier industry specialises in time-definite, reliable transportation services for documents, packages and freight. This is done via a combination of transport networking that includes road, rail, sea and air for door-to-door delivery. This extensive distribution system is supported by infrastructure that comprises hubs, warehouses, IT technology and human resources, as well as offices in various cities.
65
Over the past two decades, courier services have grown increasingly important to businesses needing to use "just-in-time" manufacturing and retaihng techniques and supply-chain logistics in order to remain competitive. Increasing reliance on these services has led the industry to grow at close to 30% over the past four years. Owing to the growing demand for reduced transit time and early deliveries the industry is forecast to grow at 25% for the next two to three years, making this one of the fastest growing segments in the transportation of cargo. International express cargo holds 6% of the express cargo industry, but is forecasted to reach 40% by 2017. Since transportation is a major part of the operations of courier companies, transportation costs form the single largest component of their operating costs. The fortunes of the industry are inextricably linked to the volumes of business that is generated, because this industry has a very high level of operating leverage. Thus, growth of this sector is driven by macroeconomic variables directly linked to the manufacturing sector and trade. PRODUCT SEGMENT Documents This segment comprises letters, financial instruments and other documents. The typical weight per shipment is up to 500 gms. This is the traditional segment for the courier industry, and is expected to grow at 12-15%) per annum.
66
Packages These are shipments containing commercial goods like electronic products, samples, spare parts, air conditioners and other commercial commodities. Growth in this segment is expected to be 30-35% per annum. This segment can be divided into two broad sub-segments: Air Shipment: This is made up of high-value and time-sensitive shipments that move through air transport. The typical weight per shipment is up to 50 kgs. Ground Shipment: These shipments have a transit time of 2-5 days, depending on the destination. Shipments are typically high-weight or low-value. Broadly speaking, the express industry comprises two sectors: The domestic segment, where movements occur within the country, and The international segment, where movements occur from/to other countries. The domestic courier industry with a turnover of Rs 20 bn is still at a nascent stage when compared to developing countries like China where the industry is five to six times bigger. At present, there are about 2300 courier companies in India, but four major players in the premium organised segment dominate the industry. Blue Dart Express Ltd. (Blue Dart) is the market leader, with a 36% market share in the domestic market, and Elbee Services Ltd., the second largest player, has a 20% market share. AFL-DHL is primarily focused on the international segment, 67
where it is the market leader, whereas Gati Corporation Ltd. (Gati) is the market leader in the domestic packages, ground distribution segment. In the domestic air packages segment, Blue Dart, having developed its own air network and aircraft operations, is currently the market leader.
Blue Dart
Gati
Elbee
Revenues of Major Player in the Indian Market (Rs. bn) In the mid-1980s, professional couriers were used primarily to send timesensitive documents. However, this trend began changing towards end-1980. It was during this period that payers like Blue Dart and Elbee really made an entry and, by the end-1980s, began shipment of samples for non-commercial purposes. This period saw the domestic express industry growing at 30-35% per annum, resulting in international express companies like Federal Express (FedEx) and United Parcel Service (UPS) enter through strategic alliances with Blue Dart and Elbee, respectively. Elbee also has a strategic alliance with TNT for European operations. Strategic alliances with global express companies give Indian companies access to global markets, without having to replicate their network in the international market. Liberalisation and the export boom in the
68
early 1990s gave a further fillip to the industry. The end of 1996 saw a slowdown that stemmed from the economic recession and slowdown in industrial growth. Most Indian companies have seen impressive growth in volumes this fiscal, with growth primarily being in the high-volume document business. In FYOO the industry recorded revenue of Rs 20.1 bn. A recent ORG-MARG survey forecasts the industry growing at 20% per annum over the next 5 years, to Rs 50.4 bn. The organised segment dominates the package and the premium document business since it requires a strong infrastructure and resources, while the lowyield document business is the domain of the unorganised sector. However in value terms the share of the organised sector is 64% and of the semi-organised and unorganised sector is 36% inspite of the large volumes it handles. Revenue Distribution
unorganised
s.mi
r
organised
\
'^'f°'' .'
26^
organised
69
Distribution of Volume EMS unorganise
Speedpost
^^^^^.^^^
•^ 27%
^^
27%
semi-organised 43%
International operations are less profitable, compared to domestic operations, due to the imperatives of revenue sharing of international business with the global partners. The revenue sharing break-up is more favorable to the partner who has a majority share (60%) of all international consignments delivered in India. This forces Indian companies to realign their product mix in favour of the more profitable domestic non-document business. Currently 64% of the revenues accrue from domestic operations and 36% from international operations. ENTRY BARRIERS The express industry is a non-regulated one, where no license is needed to enter. However, strong brand franchise, excellent distribution network and huge investments in infrastructure and technology, with trained manpower and an international tie-up for global reach, constitute substantial entry barriers, making it difficult for new players to enter the market. The industry caters to a wide range of sectors, including e-commerce, distribution and logistics, which calls for a strong infrastructure and a huge 70
network, covering a vast geographical area. This involves not just delivery capability of a particular type of shipment, but shipments ranging from a document to a planeload. It takes significant lead-time, as well as substantial investments, to develop such an extensive network. Some of the already existing courier companies like Blue Dart services 11,558 domestic locations and 211 countries through its tie-up with FedEx. Elbee services 13,500 domestic locations and has 150 branches. Creating a strong human interface of skilled manpower is another important aspect to setting up a courier company. Apart from the large number of people to be employed, companies also need to spend large sums in training their employees as well as upgrading their knowledge. Also vital is a strong brand image. All this involves large investments and years of developing and training. Where speed of information is an important prerequisite for success, high level of technology orientation is essential. Companies have invested significant amounts
in
Information
Technology-hardware,
software
and
national
communication backbone. It takes companies as long as 15 years to develop the processes and software applications, with significant cost attached to the learning process. In the domestic surface segment a company needs to operate a dedicated network on a daily basis to attract clientele. Apart from significant investments there is also significant lead-time between making this network operafional and achieving break-even point. It would take a conapany atleast 2-3 years to achieve
71
breakeven capacities on this network and absorb significant losses to operate this network. For international business, a new player will have to tie up with a global player with a significant global presence. After making these significant investments new players will have to absorb significant operating losses till the entire network achieves break-even point. Global express companies are unlikely to enter the domestic market, as they would need to match the existing players' distribution network and infrastructure covering the length and breadth of the country. Thus, if these companies do enter, it could be through tie-ups with domestic players. Competition from the Indian Postal department is building up with levels of computerisation improving significantly. THE PROFESSIONAL COURIERS PVT LTD The Professional Couriers (TPC) re proud to introduce ourselves as one of the leading courier companies which is capable of providing exemplary service throughout the country and abroad in any terrain and under any condition, made possible by the deduction of several hundred professionals who are trained to do the specified job in an outstanding fashion. This has taken our company hundred folds in service as well as network which no other company in this industry can boast off
Praises have been thrown lavishly on us by our customers for the
impeccable service provided by us.
This itself shows the dimensions this
company has created in customer satisfaction and standard which it has set for the others in this industry to follow.
72
Network supervision is carried out by all hub center in-charges with a well planned, co-ordinate transport system of vans, bus, train and air couriers inter connecting all destinations. All the latest electronic information systems like pagers, trunk radios, cellular phones etc., are being used to yield greater operational efficiency and high productivity. This in essence has helped TPC to recast our operations to better standards so as to cater to "A Wide Range of Customers" Growing Needs" in delivering their consignments more and more safely at an optimum cost with a higher efficiency at greater performance levels. There is a consistent effort to keep up-to-date with the latest technological developments in our industry and convert them into meaningful product inputs and turnout as leaders in this industry in the years to come. It was started initially with 7 officers in India. Its organization paved the way for reliable and economically affordable express courier services which was considered a luxury in India prior to it's birth. The Professional Couriers is approved by a large sect of prestigious organizations as an approved vendor for the supply of Quality. 17:17 30.04.01 services I the courier industry.
By virtue of its extensive network, lengthy
clientele, good will and growth, it is undoubtedly a leader in the Domestic Courier Industry. The memorable Events in the History of the Professional Couriers are 1987 - Lanuch of the Professional Couriers Network with 7 offices. 1990 - Computerised Billing System 73
1993 - Introduction of Van Operations. 1999 - Launch of the International Services through their International service provider Professional International Couriers Pvt. Ltd which is again promoted by the same Directors of TPC? Professional International has made several strategic service arrangements with reliable international players across the Globe. 2000 - ISO 9002-Certificatio for Kamataka Region. 2001 - Website & Computerized track & Trace system. Operation Network Professional Couriers operates through its own vans in states of Andhra Pradesh, Karanataka, Kerala, Maharastra ad Tamil Nadu to transport documents interconnecting all the destinations and the total operation is controlled and supervised by HUB-CENTER Incharges. The HUB and SPOKE concept is carried out to perfection resulting in the creation of such a vast network. The total number of HUBS all over the country is 150 catering to around 800 offices. The Professional Couriers in the only Domestic Couriers having the largest network in India, covering more than 6000 destinations with around 800 offices all over the country. Their operations are based on the hub and spoke concept and are aimed at offering cost effective and reliable services with the all important time advantage as the key criterion. Proper documentation provides
74
the backup support for the efficient operations and provides complete traceability of all consignment movement. Customers have to either visit or call at the collection centre nearest to them to book a shipment. In case of door pickup the customer should give us their address and location to arrange for an immediate pickup of the consignor copy of the consignment note will be handed over to the customer. For all future reference regarding the status of the consignment the "consignment number" printed normally in he bottom left half of the consignment note is the key. All enquiries on the website and at our collection centers regarding the delivery status of a consignment can be handled with the help of this number. The collection centre will arrange to move all the shipments to the nearest central office for consolidation of the consignments to a particular destination. The central office after consolidation will move the loads meant for each destination by the most appropriate mode of dispatch to the nearest hub centre who in turn will forward the load to the final destination. Shipments my pass through more than one hub centre before they arrive at the destination. The collection centre at the destination takes the responsibility of delivering the shipment to the addresses and will obtain an acknowledgement from him on the "Proof of delivery" copy of the consignment note and handover the "consignee copy" to the addressee along with the consignment. The proof of delivery will be dispatched back to the origin (place where the consignment was
75
picked up) centre where it will be handed over to the shipper as evidence of correct receipt of the shipment by the addressee. PRODUCT i& SERVICES DOMESTIC SECTOR Express Service Time sensitive Documents / Non-documents are delivered next day on priority basis. Air Cargo All bulk consignments are sent through cargo flights to various destinations. Surface Cargo All your bulk consignment s are transported through our own trucks and through Railways to various stations all over India. INTERNATIONAL SECTOR Global Express All documents / Non - documents are delivered world wide at most economical rates. SERVICES •
Time bound deliveries.
•
Proof of Deliveries on your request
•
Decentalised monthly billing facility in Indi.
•
Door to Door pickup and Door to Door Delivery
76
DTDC DTDC courier & cargo Ltd. (DTDC) was incorporate in 1990. Within a spent of 17 years, through its business associate DTDC expanded its delivery network across the length & breath of the country, thereby creating the nation's Largest Domestic Delivery Network. Today DTDC is one of the largest Indian companies in the Express Industry. DTDC can also be credited with pioneering the franchisee concept for the courier industry in India, and today has the largest franchisee network. Head quartered at Bangalore with 4 of its Zonal Offices at Delhi, Kolkata, Chennai & Mumbai, DTDC currently serves around 10,000 Pin code areas and has over 4,000. Franchised outlets, supported by 176 offices, which includes its Branch Officers, Regional Offices, Area Offices, Hubs and Sub-Offices. DTDC has extended its service network to the overseas market and provides services to world wide destinations using its own branches and international associates at prime gateways like USA, UK, Singapore, UAE, Nepal, Bhutan, Bangladesh, Sri Lanka & Lanka & Hong Kong. Thanks to its strong IT infrastructure, the company is able to deliver 10.5 million parcels per month to customers across the world. To support its ambitious growth plans, DTDC has entered into an association with Reliance ADAG Group, and has on its Board, a Director from Reliance. DTDC's strategic intent has always been to continuously improve Linehaul connections to achieve shortest possible transit times. The company has
adopted 'Right-First-Time" approach in every part of business to save time and is committed to training & development of employees and service partners (Franchisees) for meeting quality service standards. Besides its business expertise, DTDC is also a socially committed organization, regularly participating & conducting activities like blood donation camps, encouraging skills of under-privileged & visually impaired children amongst others. It also actively contributes towards development of sports in the country. DTDC is one of the largest Indian Company in the Express industry, enjoying a market share of nearly Rs.270 crores.
Headquartered at Bangalore,
with 4 of its Zonal Officers at Delhi, Kolkata, Chennai & Mumbai, DTDC currently serves around 10,000 pin code areas and has over 3,700 franchised outlets, supported by 176 offices, which includes its Branch offices. Regional Offices. It has extended its service network to the verses market and provides services to worldwide destinations using its own branches and international associates at prime gateways like USA, UK, Singapore, UAE, Nepal, Bhutan, Bangladesh, Sri Lanka & Hong Kong, DTDC takes the credit of pioneering the franchisee concept for the courier industry in India, and today has the largest franchisee network. With a strong IT infrastructure, the company is able to deliver 10.5 million parcels per month to customers across the world.
DTDC
has now set its sight on crossing the RS.500-Crore mark by year 2010.
78
As part of as business innovations, DTDC has ventured into the digital domain of Internet shopping, log on to DTDC website and in the home page click on the DTDC SHOP @ Be NET. With this procedure anyone located at any comer of the world, can visit the DTDC site & log on to the shopping link to choose from a wide choice of gift articles to be hand-delivered to them or to their loved once in India and world over. SERVICES IN INDIA Air Express-Domestic And International Air Express Services Air Cargo-Domestic And International Air Cargo Services Surface Cargo Services (By Bus/Vehicle on Road, By Rail on Track) INTRA - CITY SERVICES DTDC Intercity Courier Ltd, is the subsidiary company for speedy IntraCity deliveries, DTDC Intercity Courier Ltd is a venture promoted & Managed by Professionals with over two decades domain experience in the courier service industry, Now with "Intra-City" courier Service as the core focus, this endeavor promises to deliver professional service at a friendly price. DTDC Lite DTDC backed by its strong Network is well connected to places across the country, 'did lite' caters to the Express Courier * Cargo needs of our customer servicing and large number of destinations and pin codes.
79
•
Lite Features
•
Lite Reach
•
Lite Available to documents and parcels
•
Lite Web Tracking
•
Lite Email alerts
•
Lite Value added service
FIRST FLIGHT COURIER First Flight Courier came into being on Monday, 17th November 1986. It all began with the setting up of three offices at Kolkata, Mumbai and Delhi. The over whelming response from customers, was not just a dream come true, but the fruits of an early realization and recognition of the tremendous potential that the Indian subcontinent offered in terms of market size. It was the foresight and dynamism of the Founder Chairman and Managing Director, 0,P, Saboo which created a spring board for the organization to catapult into what it is todayIndia's largest Domestic Courier Company with 930 First Flight Offices across India, 2208 Authorized Collection Centers, 453 Franchisee Locations, Serving over 5000 Pin code Destinations across India, Dedicated Workforce of over 10000 plus employees. Strategically located 8 own International Offices and Serving over 220 countries globally. The fast paced growth and widening network is the out come of four basic beliefs. 80
•
Speed
•
Safety
•
Reliability
•
Economy As a natural corollary to its growth endeavor,
First Flight is in the
process of setting up a large scale integrated logistics Division to offer an entire gamut of Warehousing Inventory Management, Supply Chain Services and Distribution Channels, thereby providing total end - to - end solutions to customers. In keeping with times, First Flight continues to invest substantial effort in building a state-of-the-Art Super Information Technology highway. First Flight's commitment to corporate excellence and its yearning for making it a common household name opens floodgates of opportunities and challenges and to meet it head on, SCOPE OF SERVICES Domestic Express Mode (Documents and Non-documents) A guaranteed and prioritized upliftment through our own aircraft and /or by the fastest and first available commercial airline and surface mode.
Wherever air routes apply, a
courier accompanies your load to destination and ensures immediate retrieval from the Airport and delivery effected I the least possible time. ST COURIER The dynamic growth of commerce and industry began to place new and considerable pressures on the service industry. Despite rapid advancement in the 81
electronic communications and transport industries, the need to transport parcels and documents with I a short time become a pressing need. ST CARGO, the leader in the CARGO Industry is pleased to announce its entry in the courier industry, a company which operates with the single-minded objective of providing services and products to meet the needs of both the commercial and private sector. ST COURIER may sound like a new name but the promoters and senior management of ST COURIER are experienced and dedicated who are in the industry for almost a decade. VISION The dynamic growth of commerce and industry began to place new and considerable pressures on the service industry. Despite rapid advancement in the electronic communications and transport industries, the need to transport parcels and documents with in a short time become a pressing need. ST CARGO, the leader in the CARGO industry is pleased to announce its entry in the courier industry, a company which operates with the single-minded objective of providing services an products to meet the needs to both the commercial and private sector. MISSION The dynamic growth of commerce and industry began to place new and considerable pressures on the service industry. Deposit rapid advancement in the
82
electronic communications and transport industries, the need to transport parcels and documents with in a short time become a pressing need. ST CARGO, the leader in the CARGO Industry is pleased to announce its entry in the counter industry, a company which operates with the single-minded objective of providing services and products to meet the needs of both the commercial and private sector. VALUES The dynamic growth of commerce and industry began to place new and considerable pressures on the service industry.
Despite rapid advancement in
the electronic communications and transport industries, the need to transport parcels and documents with in a short time become a pressing need. ST CARGO, the leader in the CARGO Industry is pleased to entry 1 the courier in the courier industry a company which operates with the single-minded objective of providing services and products to meet the needs of both the commercial and private sector. SERVICES DOMESTIC Air Mode (Documents and Non-documents) All your bulk consignments are sent through cargo flights to various destinations. This provides specialized handling and door-to-door delivery of critical priority shipments such as medicines (vaccines), perishable commodities (fruits and vegetables) and other
83
time sensitive cargo by air transport. Based on customer requirements, air cargo shipments are delivered to the specific destination in 24 - 48 hrs. Surface Mode (Non-Documents) all your bulk consignments are transported through our own trucks and through Railways to various stations all over India.
Supported by container LCVs, ST ensures added and on time
delivery for surface transit cargo. INTERNATIONAL The focus of the company is to cater to the needs of all sorts of customers. Air, Sea and Express Services in our International Service. BLUE DART South Asia's premier courier and integrated express package Distribution Company. We have the most extensive domestic network covering over 21,570 locations, and service more than 220 countries and territories worldwide through our Sales alliance with DHL, the premier global brand name in express distribution services. Vision is to establish continuing excellence in delivery capabilities focused on the individual customer.
In pursuit of sustainable leadership in
quality services, the organization has evolved an infrastructure unique in the country today: •
State-of-the-art Technology, indigenously developed, for Track and Trace, MIS, ERP, Customer Service, Space Control and Reservations.
84
•
Blue Dart Aviation, dedicated capacity to support our time-definite morning deliveries through night freighter flight operations.
•
A countrywide Surface network to complement our air services.
•
Warehouses at 51 locations across the country as well as bonded warehouses at the 7 major metros of Ahmadabad, Bangalore, Chennai, Delhi, Mumbai, Kolkata and Hyderabad.
•
ISO 9001 - 2000 countrywide certification by Lloyd's Register Quality Assurance for entire operations, products and services.
•
Ecommerce B2B and B2C initiatives including partnering with some of the Prime portals in the country.
Domestic Network Linked by some of the most advanced communications systems and positioned to offer a consistent, premium, standardized quality of service. A spectrum of services to provide customized solutions The only express carrier in the country today which offered an entire range of services that extends from a document to a charter-load of shipments. Our services are relentlessly monitored to deliver a net service level of 99.96%. Customs and Regulatory expertise The organization has a dedicated team of specialists who provide the expertise for customs as well as regulatory clearances at all states within the country, to support seamless service to the customer.
85
Technology Designed to enhance the rehabihty of our operations and process efficiency, and add value to the customer through time and cost savings. Air Network The only one of its kind in the country today that is focused on carriage of packages as its prime business, rather than as a by-product of a passenger airline. A dedicated aviation system to support Blue Dart's services is self-sustaining, with its own bonded warehouses, ground handling and maintenance capability. Financial Credibility Fitch Ratings India Pvt. Ltd. Has assigned the highest "Fl+(ind)" [F one plus (Ind)] rating for our short term debt programme of Rs. 30 crores. Further, ICRA Ltd. Has also assigned the highest "A1+" (pronounced A one plus) Rating for our Commercial Paper Programme of Rs. 25 crores. People force Committed, diverse and over 6,857 strong work force is the company's our most valued asset. All achievements have been possible because they have a team who believes in themselves and their company, a team with a winning attitude. The company claims to be a learning organization, valuing selfdevelopment, and most of their managers are homegrown. COURIER INDUSTRY - The Global Scenario The courier industry spans the entire world. Due to the nature of the industry its a naturally global business. 86
More and more courier companies appear on a regular basis, and you may have noticed different courier logo's and branding on vans and planes across the world. Many of these courier companies operate independently, where as others rely on some of the larger courier companies when it comes to providing international deliveries. One of the main reasons for the increase in courier companies is the boom in global trade, probably largely down to the Internet. Couriers have to deal with all sorts of requests from delivering simple mail documents to large electronic items like computers, printers and televisions. Simply put, the courier market has grown due to demand from customers and businesses. We might think that the courier market in the UK is over populated, however the major players in the Courier industry are found in the United States. Most people have heard of companies like DHL and Fedex - even if just because they have seen them in the movies! However, it isnt just about big players. They are plenty of smaller companies that operate within the major citys and state wide. Up until recently, the UK were used to seeing Royal Mail take care of all deliveries, where as now we see companies such as UPS and DHL competing for business. This makes things much better for the consumer and businesses as they can shop around for the best courier deals. The National Courier Association in the UK now has over 100 members (and growing), operating over 2,500 vehicles across the country every day. This is some achievement considering the size of the United Kingdom.
87
