AN POST INVESTS IN AUTOMATION AS PARCELS VOLUME EXPANDS - BIZPLUS
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B P S UR VE Y PAR C E LS
An Post Invests In Automation
As Parcels Volume Expands
A
MAXWELL
n Post’s strategy of targeting
growth in the parcels sector is
paying off. The business
recorded a parcel and
packages volume increase of 40% in
2018, to c.42m parcels, and through
2019 the volume has expanded by
30%, according to Gilles Ferrandez,
Sales Director of Mails and Parcels
with An Post. “Our traditional mails
business declined by 7.6% in 2018,
which is in line with what we
expected. All of our growth is on the
parcels side now,” he says.
An Post’s contract parcel revenues
increased by 35% in 2018 and the
company has invested €15m in a new
automated parcel processing hub in
Clondalkin. The 50,000 square metre
facility can handle up to 120,000
items daily, and over the Black
Friday/Cyber Monday weekend in
November 2019, it processed about EU trade commissioner Phil Hogan (centre) at An Post’s new global parcel
one million parcels. hub with CEO David McRedmond (left) and Garrett Bridgeman, Managing
Dublin Parcel Hub (DPH) is the Director, An Post Mails & Parcels
company’s gateway for incoming and
outgoing national and international
parcels. Though most parcels volume power in the consumer’s hand.” a label or download it to their phone
is inbound from fashion retailers, An E-commerce drives parcel and for printing at the post office, then
Post cites Eason, Brown Thomas, packet volumes. Research from drop off their item at a post office or
Carrolls Irish Gifts, Blarney Woollen IbisWorld estimates that e-commerce parcel locker. With the new service,
Mills, Arnotts and Carraig Donn as sales in Ireland in 2019 will rise by users can also book a parcel return,
Irish brands that have significantly almost 13% year-on-year to €2.2bn. and choose to have the item collected
grown online sales to keep the hub The most recent An Post service or dropped at a post office or parcel
busy. addition in the e-commerce space was locker, all through the online portal.
DPH can process 13,000 parcels an the launch of parcel delivery lockers Three-quarters of An Post’s revenue
hour and the system is 90% in September 2019. The service is a is generated from business customers,
automated. For 2019, An Post says it rival to Parcel Motel and currently and during 2019 the company
will handle 16m parcels from the UK, comprises 11 parcel locker banks, launched a new B2B brand, An Post
5m from the US, Canada and Brazil, primarily located in Dublin, with Commerce, which has a focus on
and over 1m from Germany. other locations in Galway and providing e-commerce, mails and mail
“The wider market trend is about Tipperary. media solutions for domestic and
making parcel services as convenient “The big difference with An Post’s international businesses.
as possible for customers,” Ferrandez parcel locker service is that it is free to “Specifically for SMEs, we
adds. “We now offer six alternative the consumer,” says Ferrandez. “We introduced a loyalty/discount card
delivery options, which is more than will have another 11 locker banks called the Advantage Card. Users can
any other carrier. Customers can installed by the end of January and avail of discounts on products when
reroute deliveries to a neighbour or a there will be 120 locker banks they use the card either in-store or
secure space, have the product operating by the middle of 2020.” online.” Ferrandez adds that An Post’s
delivered to a local post office or on an An Post’s Click & Post online parcel services for businesses will be
alternative day, change to a second service enables consumers and small extended into financial products and
address or use our parcel locker firms to calculate postage costs and mobile offerings, among other areas.
network. It’s all about putting the buy postage online. Users can print off Survey continued on page 64
62 B USI NES S PLUS J A NU ARY 20 20
For Ireland. For generations to come. At An Post, we’re building a sustainable future. We have zero emission vehicles already operating in Dublin City and are committed to extending the rollout of our fleet to other Irish cities in 2020.
B P S U RVE Y PA R CE LS
Europe Parcels Giant GLS Adds
Global Dispatch To The Service
G
LS has enjoyed double-digit
growth in Ireland through ‘For exporters into the
2019 as the courier company
benefits from the increase in UK it is important to
e-commerce. According to GLS
Ireland managing director Andreas familiarise themselves
Rickert: “As we are part of a with customs processes
European network, we see strong
growth of imports from mainland and requirements’
Europe into Ireland as well.”
GLS Ireland is a subsidiary of Dutch
company General Logistics Systems support our customers with our
BV, which provides coverage in 41 service offering.”
European countries via its own and Against the backdrop of Brexit
partner companies, and also has a uncertainty, in 2019 GLS launched
presence in eight US states and in GlobalBusinessParcel. “With this new
Canada. The group employs c.19,000 product, we are targeting SMEs in
people and reported revenue of Ireland looking to diversify into global
€3.3bn in 2018, when the company markets and who need an established
transported 634 million parcels. parcel carrier that can offer attractive
In autumn 2018, GLS opened a new rates with a transparent pricing
facility in Blarney Business Park in model,” says Rickert. “We have already
Cork, which is more than twice the Andreas Rickert, GLS Ireland acquired our first customers for this
size of the company’s old depot in product and we are now seeing a
Little Island. The company also Courier companies are mindful of strong share of traffic into the US.”
operates a depot in Dublin. “Cork was Brexit’s possible implications and GLS For the Europe market, the GLS
an important investment to stabilise is no exception. Rickert says that GLS FlexDeliveryService operates across 21
and extend our domestic network, offers various IT solutions for parcel countries. Parcel recipients have the
especially in the west of Ireland, to shippers into the UK to speed up option to adapt deliveries to their
prepare the company to handle customs clearance processes in case of needs even in the case of online orders
additional parcel volumes over the a hard Brexit. “For exporters into the made in other countries. Regardless of
coming years,” Rickert explains. “We UK it is important to familiarise the affiliated market from which
are planning to invest further in the themselves with customs processes online shoppers order products, they
Irish market by extending capacity and requirements. GLS is a reliable receive information about the delivery
in Dublin.” partner to help with this, as we in their native language.
NEOPOST IRELAND REBRANDS AS QUADIENT
N
eopost Ireland is rebranding Equipment (PFE), which supplied management and parcel locker
as Quadient, as the products from brands such as solutions.
company’s global parent Duplo, Roland, Eurofold and Fuji. Neopost is also planning to focus
unites its various mailing and PFE was well established in the on growing market share in America
document solutions divisions into print industry and provided Neopost and European countries such as
one identity. Neopost was founded with new clients and growth France, Germany, the UK and
in France in the early 1920s and has opportunities. Ireland. In the year to January
been operating in Ireland since Two-thirds of Neopost’s global 2018, Neopost Ireland had turnover
1979. Neopost Ireland’s core revenue currently comes from of €10m and booked a net profit of
business is the provision of mailing mailing solutions. Neopost’s plan €700,000. Neopost Ireland’s
equipment such as franking is to reduce its reliance on mailing managing director is Duncan
machines and address printers. products and boost service lines Groom, formerly the managing
In 2012, Neopost Ireland acquired such as business process director of PFE.
Dublin company Print and Finishing automation, customer experience Survey continued on page 66
64 B USI NES S PLUS J A NU ARY 20 20
At GLS Ireland we support SMEs by providing access to global destinations, while offering transparent costs, reliable parcel shipping worldwide with GlobalBusinessParcel. This allows you to send parcels seamlessly to 165 countries worldwide with a service catered to strengthening your international network. This service includes: Parcel tracking on the GLS website Second delivery attempt included Recipient signature on request No additional customs fees Transparent competitive pricing by weight Use existing online portal Liability in accordance with the Montreal Convention (max. 19 SDR/kg) Transit times vary depending on delivery location. *Average transit time of 5 days to the US, 8 days to Canada and 10 days to China For more information contact our Sales team at sales@gls-ireland.com
B P S UR VE Y PAR C E LS
DPD Expands Athlone Hub
As Parcels Volume Hits 22m
E
-commerce continues to be a proof of delivery information is delivery network in Europe. In
driving force for DPD, which important.” Ireland, DPD expects to deliver 22m
has recorded a parcel volume DPD Ireland is the country’s largest parcels in 2019, up from 19m last
increase of c.20% through dedicated parcel delivery company, year.
2019. CEO Des Travers notes that and recently announced the creation DPD is also investing in assisting
omni-channel retailers are now of 120 new jobs as the company customers to get ready for Brexit, and
offering options such as home delivery invests €2m at its central sortation Travers advises that overseas shippers
and click-and-collect, while other hub in Athlone, bringing total need to be properly prepared. “Our
sectors such as pharma, electronics investment in the facility to €38m. new web-based shipping solution
and motor parts are thriving. Over the peak Christmas period, includes fields for all the relevant
Flexibility around delivery has also DPD Ireland will see upwards of information like EORI number,
become crucial for consumers, Travers 170,000 parcels processed per day harmonisation codes, description of
adds. “Our Predict one-hour delivery throughout its network of 34 Irish goods etc,” he says.
window notifications are a really depots. A total of 21,000 parcels will “For Irish SMEs who have never
important part of the service, as is the be sorted per hour, versus the regular shipped outside the EU before, it’s
ability to opt for a different delivery non-peak parcel volumes of 14,000 really important that they understand
day, or alternative location. Full per hour. DPD Ireland is part of the new requirements. They need to
traceability is critical to the business- French company DPDgroup, the build up their harmonisation code
to-business shipper too, so real-time second largest international parcel database in advance, ensure that
Next day delivery throughout Ireland.
Predict™ 1 hour delivery window notifications.
Real time tracking via dpd.ie and
DPD Ireland App.
Flexible delivery options to
suit consumers.
Ireland’s first electric delivery depot.
Europe’s largest road network - fast,
reliable service to UK and mainland Europe.
Contact us today!
T: 090 64 20500
E: sales@dpd.ie
dpd.ie
#DPDGoGreen
B P S U RVE Y PA R CE LS
they’ve applied for their EORI PAUL SHERWOOD
number, and to make sure that they’ve
a strategy around who is going to pay
the VAT and duty. Do they want to
charge the consignee or will they
cover the cost themselves?”
For carriers, Travers maintains that
significant changes need to be
deployed to systems infrastructure
and operational structures. “DPD will
have a team from Revenue based on-
site at our Athlone hub to ensure that
parcels are processed as efficiently as
possible. We also have several ETSF
locations in both ROI and NI to
facilitate smooth movement of goods.”
As well as launching its web-based Des Travers (centre) with DPD drivers Tom Searle and Francis Bradley
shipping solution in 2019, DPD has
also been embracing artificial
intelligence and other technologies. opened Ireland’s first electric delivery service is just as impor tant. “This is
“Barry, our customer services chatbot, depot in East Wall. Our strategy is to especially true for e-tailers, where the
has been a great support in dealing incorporate electric vehicles into each engagement with the delivery driver
with customer queries since late 2018, of our depots over the next three might be the only human interaction
and in 2019 we launched our Brexit years.” a consumer has with a brand. As a
Bot. As a carrier, we’re really Travers emphasises that while carrier, we’re brand ambassadors not
conscious of the impact on the technological innovation is essential just of DPD but of the brands on
environment. In April 2019, we in the logistics sector, quality of whose behalf we deliver.”
Survey continued on page 68
LOGISTICS MADE EASY...
(Est. 1987)
B U S I N E S S P L US J AN UA RY 2 02 0 67
B P S U RVE Y PA R CE LS
Same-Day Delivery Services
From Superior Express
A
family-run business in
operation since 1987,
Superior Express has grown
to become one of Ireland’s
leading freight carriers. The business
operates from a 40,000 sq. ft.
premises close to the M50/Red Cow
junction and has depots nationwide,
including Cork, Donegal, Galway and
Armagh. Superior Express operates
one of the largest fleet of vehicles in
Ireland, comprising over 70 vehicles.
Managing director Brian Cleary
explains that though the company
specialises in same-day delivery, its
offering extends well beyond that. Superior Express operates one of the largest vehicle fleets in Ireland
“Among the services we can offer are a
worldwide delivery service, specialised
home deliveries, break-bulk and pick- vehicle diversity, which includes vans, The Brexit issue is low on Brian’s
and-pack facilities, time-definite rigid trucks, artic trucks and trailers. agenda. “Nobody knows what’s going
deliveries and online booking. A niche The business also uses technology to to happen yet – not even the British
area for us is the delivery of extra- good effect. “Our Track and Trace prime minister seems to know,” he
large and out-of-gauge cartons, within system allows customers to see when says. “I don’t see the point in
certain limits.” their delivery has been made,” says speculating on changes that might or
Superior Express delivers post, Brian. Alongside the ability to book might not be coming. In the
parcels and pallets to all 32 counties. Superior Express services online, meantime, we are focusing on our
Catering for out-of-gauge cartons is customers can also get online proof own business, continuing to grow and
made possible by the company’s fleet of delivery. develop our services.”
COMPARE PARCEL PRICES ON EU PORTAL
T
costs an average of €25. l Forty per cent of SMEs dispatch
he issue of parcel delivery
Similar price imbalances can be packages and parcels daily or
costs across Europe has
seen between sending a 2kg parcel weekly. The frequency increases
engaged the attention of the
from Ireland to Italy (€39.50 on with size, with 51% for small firms
European Parliament, which in 2018
average) and from Italy to Ireland (11 to 49 staff) and 73% for medium
instructed the Commission to devise (€29 on average). The Ireland to firms (50+ staff). This frequency is
an online portal where parcel Denmark cost averages €39 across highest in Dublin (51%) and lowest
shipping costs to and from each EU the three listed shippers, while the in the rest of Leinster (29%).
member state can be compared. (To average cost coming the other way l The average number of packages
view the portal, search ‘Public is €29. and parcels sent per week for Irish
tariffs on cross-border parcel In 2019, postal regulator ComReg SMEs is 10. Average weekly volume
delivery services’.) commissioned Behaviours and is lowest for micro firms at 9, and
For a 2kg parcel shipping from Attitudes to research SME postal highest for medium-sized firms at
Ireland, the portal lists three parcel users through face-to-face 15. Average weekly volume in Dublin
delivery options: An Post, GLS and interviews with 490 companies with (15 parcels) is twice the volume in
DHL Express. For a 5kg track and under 250 employees. B&A probed Connacht/Ulster (8).
trace parcel, Federal Express is also these SMEs’ opinions on the cost of l When asked whether they are
included in the price comparison. sending parcels and packages. sending more parcels in 2019 than in
For a 2kg parcel, the average The research found that while 2018, three out of four SMEs said
shipping cost from Ireland to 40% are satisfied with the cost of that their volume hadn’t changed. The
Germany is €39, with GLS the sending parcels, an equal proportion net difference between SMEs sending
cheapest. Sending a parcel of the are dissatisfied. The survey’s other more or less parcels was +4%.
same size from Germany to Ireland findings included:
68 B USI NES S PLUS J A NU ARY 20 20
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