Subscribe to our free, weekly email newsletter!


Can couriers capture more “business-to-retail” logistics?

Messenger Courier Association of America’s (MCAA) Annual conference in San Francisco on September 3-15 promises to introduce some intriguing ideas about “last mile delivery.”
By Patrick Burnson, Executive Editor
August 24, 2012

Messenger Courier Association of America’s (MCAA) Annual conference in San Francisco on September 13-15 promises to introduce some intriguing ideas about “last mile delivery.”

According to MCAA executive director, Robert L. DeCaprio,  there’s been considerable speculation on the vulnerability of transport giants FedEx and UPS in the “same day” niche.

“We have been hearing rumors about major retailers seeking to build deals with Amazon to use couriers for this delivery,” he said. “If that’s the case, it would be a major opportunity for our constituents.”

Not sure of the Craigslist context-who was the analyst, and what did they say?

Industry analyst, Doug Caldwell, VP EMEA, at AMFS, told LM that Amazon is seeking to get packages delivered faster, cheaper and more accurately, and they are making major inroads in all three areas.

“The single biggest issue facing B2C shippers is the hand off between carrier and customer,” he said.  “For instance, the carrier says that they left the package on the front porch, but the customer says they never received it. Or the carrier leaves a delivery notice, which is a hassle for both the customer and the carrier.”

Caldwell said that In the U.S., Amazon is testing parcel lockers in a number of cities. These lockers are very popular in Europe. In the UK, Amazon is testing “CollectPlus”, which is a joint venture between Liverpool based parcel carrier Yodel (formerly Home Delivery Network) and PayPoint.

“There are currently 4,500 Collect Plus shops in the UK. Many of them are located at gas stations and convenience stores.”

This lowers the cost of “Last Mile” delivery for both Yodel and Amazon, virtually eliminates claims of non-receipt, and the customer often receives their package a day or more sooner, explained Caldwell.

“CollectPlus shops can also be used to send Amazon shipments at a very reasonable cost. Customers can also easily return items at the CollectPlus shops,” he said.

Yodel currently handles a very large number of Amazon deliveries in the UK through so called “lifestyle couriers”. Earlier this year, Yodel announced that they were going to six day per week delivery instead of five day. During peak season, Yodel will go to seven-day delivery.

“Amazon is also using various local courier companies for same day delivery in the U.S., as well as regional carriers, such as California based On Trac,” said Caldwell.

Also worth noting, he said, was that UPS purchased Amsterdam based Kiala earlier this year. Kiala sets up “Kiala Points,” which are similar to the Collect Plus shops in the UK.

“I spend part of my time in Amsterdam, and there are four different Kiala Point shops within a two block radius of my apartment,” said Caldwell. “The packages are delivered to the parcel shops very early in the morning, before traffic gets heavy. In many cases, customers pick up their packages on the way to work. So even UPS is acknowledging that alternate delivery is a big part of the future of B2C. UPS is now referring to this as ‘B2R’ – Business to Retail.”

Jerry Hempstead, principal of Hempstead Consulting, who will be presenting a the MCAA conference, told LM that shippers shoud keep in mind that UPS and Fedex are major suppliers of service to Amazon.

“This may not be a threat to them,” he said. It could have a greater impact on to United States Postal Service revenue.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Transportation stakeholders reliant on North Carolina’s major seaports are welcoming news this week, which outlines plans to enhance the intermodal and cold chain network in the region.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.9 in February, which was 0.2 percent ahead of January and also 0.1 percent ahead of the 12-month average of 56.8. Economic activity in the non-manufacturing sector has grown for the last 61 months, according to ISM.

Non asset-based third-party logistics (3PL) services and logistics technology services provider Transplace said today that Brooks Bentz has joined the company in a newly-created role as president of Transplace Consulting in conjunction with the launch of the company’s new North American consulting services practice.

The advent of e-commerce continues to grow and gain increased traction over time. The many ways for consumers to order and purchase goods online continues to expand and leads to various subsequent byproducts of online purchases, including shopping through multiple channels, and delivery and payment options, among other things. These types of topics serve as the thesis in the second annual UPS Pulse of the Online Shopper Global Study issued this week by UPS and comScore Inc.

A major highlight of CEVA’s fourth quarter performance was its new business wins, which were up 14 percent for all of 2014, with Freight Management wins up 14 percent, and Ocean Freight and Air Freight wins up 30 percent and 14 percent, respectively, while Contract Logistics wins were up 2 percent.

Article Topics

News · UPS · FedEx · Parcel · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA