Brexit Looms Large Over Thriving Parcels Sector - Business Plus
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BP SURVEY PA R C E L S
Brexit Looms Large Over
Thriving Parcels Sector
E-commerce continues to keep parcel carriers busy, while online shoppers expect faster
and more convenient deliveries, writes Emily Styles
Y
ou get some idea of Ireland’s
changing shopping habits from
the Black Friday experience at
Littlewoods Ireland, one of the
country’s most popular online
shopping destinations. The retailer
extended the November shopping fest
to three weeks and sold 16,000
dresses to Irish customers in ten days.
Eighty per cent of the purchases were
made on a mobile device, illustrating
how the mass adoption of
smartphones has brought internet
connectivity to the people that PCs
never reached.
The Littlewoods digital department
store receives an average of 2.5 million
visits each month and the company
offers free delivery and free returns on
all standard orders. Littlewoods says it
delivers over two million parcels
around Ireland every year, with a
Click & Collect service extending to
over 1,000 locations.
According to the accounts for the
operating company, Shop Direct
Ireland Ltd, distribution costs account
for 30% of revenue, and the operating
profit margin after staff and other
overheads is 4.7%. It’s tough to get
rich quick in online retail, and the
vendors demand that their logistics could include custom declaration times and enhanced data provision
partners cut their charges to the bone. procedures and the collection of VAT The strategy has been paying
The online vendors and their and custom duties, where required. dividends. For 2017, parcels revenue
logistics partners in Ireland are Like US shippers, post-Brexit, UK was almost €16m higher than it was
holding their breath over Brexit. Royal e-tailers could arrange to charge for in 2016, and volume increased by
Mail research this year found that, on the duty at source, though this would 42% to 30 million items in the year.
average, Irish online shoppers spend make their goods more expensive to Catering to e-tailers will remain a
€85 per month, and eight in ten have Irish buyers and depress incoming central focus for An Post into the
purchased from a UK website. As parcel volumes. More likely, if the UK future, according to Gilles Ferrandez,
Irish consumers purchasing from a exits the Customs Union, the UK commercial director in charge of An
UK site spend an average of €58 a players will relocate some operations Post’s parcels division.
month, it’s clear that free movement to an EU base. “Our task is to tailor our products to
of goods between Ireland and the UK An Post has been making a suit customer needs, and to be able to
underpins a massive parcels market. concerted effort to tap into the e- provide attractive pricing, too,” he
According to ComReg, the postal commerce surge by positioning itself says. “If they are successful, they’ll
regulator, the exit of the UK from the as a flexible parcels deliverer. The know that An Post will be supporting
EU will likely bring challenges for company undertook a re-launch and them and giving them bigger
parcel delivery service providers re-specification of its parcels business discounts based on their volumes.”
regarding the delivery of packets and from 2017, introducing evening and An Post accounts for in excess of
parcels to and from the UK. These Saturday deliveries, later acceptance 30% of the parcel delivery market.
54 BUSINESS PLUS JANUARY 2019
B P S U RV E Y PA R C E L S
The state company is the delivery
partner for Amazon, while fashion
clients include Zara UK, Decathalon Simplifying the consumer journey is crucial in
and H&M. Industry observers
speculate that domestic deliveries by terms of improving operational efficiencies
Irish retailers are enjoying annual
growth of circa 20%, while the
growth figure for UK retailers into a competitive advantage. Free shoppers, their interaction with the
Ireland in the past year tops 70%. shipping was cited by 44% of parcel carrier is frequently the only
customers across the 31 countries in human interaction they make
T
he UK advantage is partially recent PayPal research as a chief throughout the purchasing journey.
explained by the euro’s strength attraction for cross-border e- Making that interaction count is
against sterling, but also because shopping, second only to cheaper critical.”
in many cases the UK giants absorb pricing. Travers argues that Irish SMEs are
the cost of delivery and returns. At DPD Ireland, chief executive Des still somewhat behind the curve in
Research conducted for ComReg, the Travers is also adapting his firm to terms of developing an online
postal regulator, has shown that price ongoing trends in e-commerce and presence, let alone an e-commerce
and reliability are the two key the logistics sector in general. He has arm. He adds that a crucial factor in
determinants of choosing a provider overseen significant investment by e-tailing success involves businesses
to deliver packets and parcels. It DPD in technology over the last year, making the customer’s journey as
indicated that buyers of postal in a bid to stay abreast of consumer simple as possible. “Whether it’s at
services for packet and parcels would demands. the purchase point or during the
like to see lower prices. “With B2C deliveries making up delivery process, every business has
The research also found that most almost 50% of our delivery business, to give control back to the customer,
pricing in the packets and parcels simplifying the consumer journey is letting them engage in a way that
sector is set by commercial crucial in terms of improving suits them, and in the most efficient
negotiation with the large retailers. operational efficiencies and service manner. Time is their most precious
This gives the big players like Amazon overall,” says Travers. “For online commodity.”
continued on page 56
BUSINESS PLUS JANUARY 2019 55
BP SURVEY PA R C E L S
An Post Plans To Double
Parcel Click & Collect Points
An Post’s ambition is to be the e-commerce backbone
of shoppers and shippers in Ireland, writes Robert O’Brien
T
he growth of e-commerce
changed the game for many
operators in the logistics and
postal sector, including An Post.
Online shoppers now want flexibility
with parcels deliveries to a degree not
hitherto seen by operators. As a result,
CEO David McRedmond headed up a
radical reorganisation of An Post’s
parcel service that began in 2016 and
is still ongoing.
A suite of new or improved An Post
services now provides parcel deliveries
at times that suit shoppers, and with
the nimbleness that they demand.
Overall parcel volume for An Post
through 2018 was up by 42%, with
more than 30 million parcels processed.
E-commerce parcel traffic grew by
46% last year and An Post secured
several big retailers as customers,
including Zara, H&M, Ikea and
Decathlon. An Post is also clicking
with Irish e-commerce companies –
traffic volume handled for them was
up 20% in 2018.
Gilles Ferrandez, Commercial
Director in charge of An Post’s parcels
division, navigates the organisation Gilles Ferrandez, An Post Our ambition is to be the e-commerce
through the festive season, the busiest backbone in Ireland for shoppers and
time of the year. This year, An Post has Ferrandez says that An Post has a shippers.”
launched its new InFlight flexible two-pronged approach to its ongoing Ferrandez sees the broadening of
delivery options scheme, which repositioning as an e-commerce-ready An Post’s Click & Collect service as a
Ferrandez says has been a solid success. parcel delivery service. The first prong key facet in bringing more business
“For InFlight, we use a mobile- involved a wooing of big retailers and customers on board. “Through 2019,
enabled website that doesn’t require end customers, which is already in we will expand our network of Click &
any registration or downloads,” he motion. In 2019, smaller companies Collect points to include convenience
explains. “We send you a text with a link selling online or looking to do so will stores, too. We currently have 1,100
to a webpage. There are five delivery also come into prime focus for An Post. post offices as collection points for
options there for you to choose: delivery “In 2019 and 2020, we plan to Click & Connect but the expansion to
to a neighbour, a safe place (e.g. porch), invest in excess of €20m in our convenience stores will double that.”
a different address, delivery on a technology and operations. Around An Post’s ongoing parcels refocus will
different day, or delivery to a post office €15m of this is set aside for parcel see it increasingly target SMEs of all
or other specified collection point.” automation machines in our parcel sorts that are looking to get their feet
Through An Post’s Click & Collect hubs, which will improve our ability to on the e-commerce ladder. “We
service, firms can also facilitate process and sort parcels. recently launched our new AnPost.com
flexible deliveries. They can integrate “We also plan to get bigger vans to website, which includes a section on
the Click & Collect delivery option our delivery people, moving them parcels and e-commerce,” Ferrandez
into their website shopping cart, away from bikes onto electric vehicles adds. “As a result, we are getting a lot
allowing shoppers to pick up their where appropriate. We hope to have a more enquiries from SMEs about how
parcels at nearby post offices at a time full electric fleet between the canals to start selling online.”
that suits them. in Dublin before the end of 2019. Survey continued on page 60
56 BUSINESS PLUS JANUARY 2019
anpost.com
PRO FILE N EO P OS T I R E LA ND
Introducing Packcity, The
Intelligent Parcel Locker
Solution From Neopost
As parcel package volumes continue to rise, parcel locker solutions are essential
for overworked mailrooms, writes Ray Bissett of Neopost Ireland
W
ith businesses increasingly security measures while increasing
moving to digital efficiency to meet the needs of
communications over today’s mobile workforce. Most
traditional paper, you importantly, these solutions have a
would think that the pressures placed proven track record of quickly
on mail staff would be relenting. delivering return on investment.
However, the decline in mail has been
Mail and parcel storage lockers are far
more than matched by the rise of a new
from a new addition to mailrooms.
challenge that many organisations are
However, traditionally their only
ill-equipped to deal with: the growth in
benefit was an added layer of security
package delivery.
while storing mail. They still required
The European parcel market has been a member of staff to be present to
growing at an annual rate of 5% to 6% sign in and sign out packages, as well
in recent years. We’re also witnessing as delivering them to the recipient.
growth of the B2B parcel market, with Ray Bissett, Senior Marketing Now, there is a new generation of
the likes of Amazon and Alibaba Manager, Neopost Ireland automated storage lockers that
mimicking their B2C operations for facilitate a far greater quantity of
the B2B market. This is adding higher value business incoming packages, and enable mailroom workers to
and personal packages into the parcel network. focus on critical tasks.
Traditionally, the only way to deal with this growth We have seen a shift in online shopping habits, with
would be to increase spending on labour and many employees having parcels delivered to work.
capacity. Fortunately, new digital solutions have Therefore, efficient management of incoming parcels is
emerged to specifically meet the needs of this new increasingly important. Parcel lockers, combined with a
mail landscape. They allow mailrooms to manage parcel tracking solution, can provide businesses with a
more incoming mail with fewer resources, to improve complete incoming parcel management solution.
With Packcity, staff can collect
parcels using a bespoke PIN code
COSTS OF PARCEL OVERLOAD
l Delays – critical mail and packages may be
Neopost has been selling parcel locker solutions since
2013. With successful launches in Australia, France, delayed in reaching their destination.
Japan and USA, over 3,300 locker systems have been l Misallocation – a whopping 76% of companies say
installed worldwide. In 2018, Neopost continued to some inbound mail is incorrectly allocated.
expand its reach, launching in Italy, Benelux and
l The Last Leg – mobile working can often make it
Denmark. Now Neopost brings Packcity, its intelligent
parcel locker solution, to Ireland. difficult to reach mail recipients.
l Security – organisations need thorough safety
Parcel lockers save users time and money, and bring
simplicity to the mailroom by optimising the procedures in place to prevent dangerous packages
management of incoming parcels. The system reduces being missed.
storage space, prevents lost packages, eliminates the
need for re-delivery, and provides end-to-end tracking EVOLVING TRENDS IN MAIL
and accountability. It also simplifies the collection AND PARCEL DELIVERY
process for the end recipient with convenient parcel
pickup and 24/7 accessibility. l Personal Shopping – professionals/students
increasingly expect to be able to receive their
HOW PACKCITY WORKS
personal shopping at their office/university.
The Packcity intelligent parcel locker solution is an
automated electronic locker system that enables you to l Business Equipment – business requirements are
securely store and distribute a large volume of inbound resulting in far more incoming packages. There are
parcels, and inform recipients of their arrival. It expected to be 3.4 connected devices per person
comprises modular secure electronic lockers with a by 2020.
touchscreen interface and software for reporting,
l Employee Mobility – 61% of workers now report
tracking and monitoring.
working outside the office at least part of the time.
Items are scanned on delivery and the recipient’s As a result, locating employees for parcel and mail
address is selected from the internal address book via delivery can often be difficult.
the touchscreen. A box size is then selected and the
parcel is placed into one of the secure lockers. Parcel trying to track items down. Neopost’s latest Web
recipients are notified of their delivery via email and Tracking System (WTS) has been designed to help
provided with a unique PIN code and barcode. businesses to improve tracking of incoming parcels.
This means they can collect their parcel at their The software combines with handheld devices and
convenience without the need for mailroom staff to be allows you to easily track incoming packages from their
present. The secure locker removes the risk of theft, arrival in the company to the final recipient.
vandalism or fraud. When collecting, the recipient visits WTS is easy to use and comes with a real-time chain of
the parcel lockers and enters the code via the custody, meaning parcels are easier to track. When a
touchscreen or scans the barcode. This opens the package arrives, the user scans the tracking number
relevant box for pick-up. and selects the recipient who the delivery is intended
Packcity lockers have the added benefit of being for. Once delivered, the recipient signs for it with an e-
customisable in two ways. Aesthetically, a company’s signature. The entire process can be tracked on the
branding or logo can be added, and functionally the system software, providing peace of mind in knowing
size of the lockers can be adjusted based on the the whereabouts of the package in transit.
space needs. Packcity will particularly benefit WTS would be best used by businesses with around
organisations such as universities, corporates and 100-plus employees located across multiple floors, or
other offices receiving more than 50 parcel deliveries locations that receive more than 50 items a week that
per week. The University of Pittsburgh, with over need to be handed over in an efficient way to relevant
30,000 students and 7,000 staff, is just one example departments and employees.
of where Packcity has significantly reduced both the
service and delivery times. To learn more about Packcity and
TRACKING PARCELS INTERNALLY Web Tracking System, contact Neopost
For other items that need to be delivered to their final today on 01 625 0900 or visit
destination, distributing and keeping track of inbound www.neopost.ie/packcity
mail can be frustrating and costly. Organisations may
be spread across multiple locations or levels and have a
lot of people receiving incoming packages. All of this
can easily cause a package to get lost or delayed.
When parcels get held up in internal processes, or don’t
reach intended recipients at all, it’s not only
frustrating – it also leads to wasted time and effort
B U S I N E S S P L US J A N U A RY 20 1 9 59
BP SURVEY PA R C E L S
DPD Volume Increases By 25%
B
usiness has been thriving for “We advise
DPD over the last year, with the customers of their
parcels and logistics firm one-hour delivery
recording a jump of nearly 25% in window and offer
parcel volume. DPD is also benefiting them the option to
from expansion and service reschedule or
enhancements. change delivery
“We doubled the size of our sortation location via a link
hub in 2016 and last year made further directly onto our
developments to our conveyor website.”
technology to support ongoing growth,” For e-tailers,
says Des Travers, DPD’s CEO. “We Travers
have restructured our depot network, recommends
consolidating smaller depots to create implementing a
larger, more efficient operations.” slick returns
On the IT front, DPD is embracing Des Travers, DPD process. “DPD Group’s 2018 eCommerce
Artificial Intelligence to boost its Barometer Report identifies lack of
digital services. “We introduced Barry, DPD’s tracking events are available via transparency regarding pricing, unclear
the DPD Ireland chatbot, to customer dpd.ie throughout the parcel’s delivery delivery information and insufficient
services in 2018,” says Travers. “He has journey. We send out thousands of SMS details on returns processes as key
made query resolution much easier for and email alerts to parcel recipients barriers to purchase. Clear, concise
many of our consumers. daily.” information is critical to the consumer,
“Real-time tracking and scan Travers adds that customers also want with full transparency on pricing, transit
availability is very important to our to be able to self-serve, so making an times, who the carrier is and how returns
customers and consumers too, and all of online service available is important. will be dealt with.”
DX Is More Than Just Exchange
D
X Ireland has built a strong,
40-year business in Ireland by
prioritising time-sensitive
deliveries with dependable security.
Despite a national declining mail
market, DX Ireland’s document
exchange service continues to grow.
Robust revenue growth prompted the
firm to move to a larger hub last year
and strengthen its management team.
DX operates two main services: DX
Exchange and DX Courier, according
to Kevin Galligan, Regional Director
for DX Ireland. “The DX Exchange is
a member-to-member document
exchange mailing service,” he explains. Kevin Galligan, DX Ireland noon. On a same-day basis, we are
“It was originally set up for solicitors delivering to over 60 cities and main
and barristers and the communities collected and brought to Dublin. All towns throughout Ireland.”
that fed into legal, such as the items are sorted through the night Other B2B services provided by DX
government and financial services. and delivered to members’ DX boxes include next-day or two-day delivery
“Our DX Express Registered Service before 9am the next morning. The services to the UK and vice versa.
also continues to grow. This service is cost-effective service sees more than While DX uses GPS and associated
particularly popular among the legal 25,000 items moved every night. high-tech tracking systems to manage
profession that have a legal requirement DX’s customers include the retail its mail, Galligan says that the
to serve notice by registered post.” banks, as well as hospitals and business’s human touch is what sets
DX Ireland operates 240 document opticians. “We have an extensive and DX Ireland apart. “We’re continuing
exchanges around the country and popular same-day service operating to focus on delivering the best
each member has a DX box in their around the country,” Galligan adds. customer service in the B2B sector.”
local exchange, from which mail is “We dispatch out of Dublin at 12 Survey continued on page 62
60 BUSINESS PLUS JANUARY 2019
THE DELIVERY NETWORK FOR IRELAND AND THE UK DX Courier is our unique b2b service that offers fast, secure and cost-effective nationwide next day parcel delivery for Ireland and the UK. DX’s Courier service is both reliable and highly competitive, providing you with: • RELIABILITY – a minimum of 99% proven track record of deliveries made on time • PERSONAL SERVICE – dedicated Account Management & Customer Service teams based locally •ONLINE TRACKING – Customer signature POD available online • NEXT DAY DELIVERY – be sure that your freight arrives the next working day • EXPRESS OPTIONS – customer choice on the deadline for delivery • CONVENIENCE – our couriers can collect all your items from your business premises every afternoon • SIGNIFICANT COST SAVINGS – with our highly competitive pricing To find out more, visit www.dxdelivery.com or call us on 01 506 0182. DXC/MKT/0236/01NOV16 DELIVERED EXACTLYTM
BP SURVEY PA R C E L S
Neopost Evolves For Digital Comms
N
eopost Ireland’s core business is In Power’s opinion, there is a push
mailing equipment such as towards the convenience of preparing
franking machines and address communications digitally, and instances
printers, which it has been providing to the company’s
Irish businesses since 1979. The Neotouch product. “You simply press
company provides advanced solutions print and documents go to a dashboard,
for physical mail processing, digital to be sent via Neotouch. This transfers
communications management, and them to a secure facility where machines
supply chain and e-commerce process print, fold, insert, frank and send post.
optimisation. Neopost services are sold “Registered email is another service
in more than 90 countries and the that we launched recently. It allows the
company had annual turnover of user to send their registered post
€1.1bn in 2017. digitally and to accurately track its
In recent years, the company has progress right up to the recipient
been evolving into a digital Conor Power, Neopost receiving and opening the message. It
multichannel communications integral to the success of e-commerce also allows for significant savings on
provider, according to Conor Power, vendors, and Power explains that physical registered post.”
Sales and Operations Director. “We’ve online players can use Neopost’s Looking to the future, Power
noticed that companies have a desire to multichannel solutions such as OMS- anticipates that companies will try
communicate with their customers 500 to communicate across multiple harder to create a more paperless
using digital means, as they become platforms. “This helps them to break working environment and to develop
aware of the availability and capability away from a one-size-fits-all message more efficient postage processes.
of solutions,” says Power. “Through and start tailoring communications “Coupled with the possibility of rising
digital communications, a company can individually to a specific audience,” says postal and delivery costs, this will drive
better target and communicate to a Power. “Especially in the light of industries to explore more digital
recipient’s individual needs, even if the GDPR, it’s important that the solutions to send and process post and
recipient is part of a bulk mail send.” customer is communicated to the way other communications to customers,”
Effective customer communication is they wish to be.” says Power.
GLS Triples Cork Capacity
C
ourier company GLS has opened
a new depot at Blarney Business
Park in Cork which triples its
capacity in the Munster region. “We
expect rising parcel numbers, and the
increased capacity allows us to
sustainably offer our customers a high
quality level,” says managing director
Andreas Rickert.
The warehouse is 240% bigger than
the old depot in Little Island, and a
new conveyor system can process
three times as many parcels than in
the former Little Island depot. GLS
Ireland is a subsidiary of Amsterdam-
based General Logistics Systems,
which operates in 41 European
countries as well as the US and The new GLS depot in Blarney delivery time does not suit the
Canada. The company had turnover Business Park customer, they can choose to alter the
of €2.9bn in 2017-2018 and carried delivery day or choose to collect from
584 million packages. purchases. If the time doesn’t suit, one of the 180 GLS ParcelShops
This year, GLS Ireland also shoppers can choose from several nationwide.
launched a flexible delivery service for other delivery options. The Track & Trace feature allows
domestic e-commerce. Online If the online retailer has booked the the package to be tracked from its
retailers using the FlexDelivery FlexDelivery service, GLS informs the collection to delivery, and the
service can notify shoppers in advance parcel recipient via email about the FlexDelivery service is also available
of the delivery date and time for their estimated delivery time frame. If the for international delivery.
62 BUSINESS PLUS JANUARY 2019
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