March 9, 2010
What is a Courier Service?
A courier service is an organized business that provides a unique delivery experience of packages and documents that range in size from an envelope and multiple skids. A courier service is typically much faster delivery time than other methods typically provided by companies such as DHL, FedEx and UPS. The courier service industry is a fairly robust industry in the Western world with over 11,000 courier businesses in United States of America. Courier service industry is one of the oldest industries which has been around since the need to deliver messages over great lengths. In today’s world of international business, a courier service is a pivotal to we used in everyday business. Services such as the fax machine enough of simply complemented the great need of delivery or physical products.
Courier service industry in the United States is a $59 billion industry and the largest player being United Parcel Service delivers more than 1 million packages globally each day. The average courier company in the United States does approximately $2.5 million a year in volume. The courier service industry in the United States is a very fragmented industry that has failed consolidation of several attempts. There are little barriers to entry into this business with very little government intervention compared to other regulated industries.
Most courier companies in the Western world use independent contractors move packages. It is estimated that up to 80% of businesses in the United States use independent contractors were delivered. These independent contractors utilize their own vehicle to make a direct route of delivery and get paid a percentage of the revenue. They are typically responsible for all their own expenses and essentially an independent contractor is running their own business.
Companies that use a courier service range from attorneys two major parts manufacturers. Consumers are beginning to utilize courier services deliveries and white glove delivery is from retailers and e-commerce stores. Courier service industry can move practically any package across the country in the same day and many couriers are beginning to offer national retail distribution. This industry can also deliver and set up furniture, goods, electronics and other products through a service called white glove delivery.
By utilizing multiple couriers and other cities, integration of technology, and existing infrastructures such as the commercial airline industry, a national network has been created compete with the overnight carriers and offer same-day delivery in the United States.
With the increasing demand of consumers, courier service industry is poised to join the retail and e-commerce industries. Online retailers like Amazon, offering their local express delivery service, have begun to provide same day delivery to their customers.
With increasing technology, courier service business and provide electronic tracking via GPS with electronic signature capture from the point of pickup through the point of delivery from any point in the country. This means that customers and track their packages and real-time and receive real-time delivery and pickup notifications. By utilizing existing wireless technology, existing commercial infrastructures such as the commercial Airlines, and existing courier businesses with independent contractors, this industry and deliver the same quality of service is the major players with their own network.
Filed under Courier and Messenger, E-Commerce Shipping, Independent Contractors, Logistics by monte
The courier service industry is the second oldest industry, when foot messengers and birds transported messages from one location to another. While slower to adapt, the courier industry has seen tremendous improvements and changes. The concept of delivering something of importance in a timely fashion hasn’t changed, but the packages and delivery method have changed significantly.
In the early days, typically a courier service moved messages, at the time called messengers. The introduction of the telephone threatened the industry. It only continued to grow. During the industrial era the industry begun to see changes, moving hard goods, banking and financial paperwork. With the boom of corporate growth and companies such as FedEx and UPS emerging in the mid 1900’s, those in the courier service industry felt threatened again. It wasn’t until the 80’s the next threat of the industry arrived, with the fax machine. In the 90’s it was email. The National Courier Service industry is now over a 60 billion dollar industry in the United Statesand has experienced growth on average of 9-11% per year since 1997.
It was the push of technology that really made a huge impact in level of services that a courier company could offer. Courier software allowed for efficiencies in the dispatch room, requiring fewer drivers and dispatchers, driving costs down allowing the services to further compete with the next day services. The Internet pushed it further, eliminated bodies in the call centers by offering online order entry and tracking. GPS, bar code scanning and electronic signature capture only pushed these firms closer to the efficiencies that the next day guys enjoyed. In the past 15 years, these couriers are now competiting head to head with the big three, UPS, FedEx and DHL for overnight service.
With the near collapse of the airline industry in the early days of the new millennium, airlines were starving for cash, inviting these locally based couriers to move packages state or nationwide. National Same Day Courier Service was born. Software plugged directly into the flight schedules of the airlines along with other technology advancements only pushed these small mom and pop firms to provide their clients with same day services nationwide. Some courier service companies easily grew to over $20 million firms. Some are over $100 million.
Imagine you’re on your way to the office in Mahnatan looking for New York Courier Service and you receive an email on your iPhone, you’re sales rep’s demo unit crapped out in Los Angeles, hours before a big presentation. Your competition is in their and you know you don’t stand a chance without the prototype. At precisely 7:04 am in NYC, you pull up your iPhone app, push a couple of buttons and 68 seconds later ‘your order is confirmed’ is displayed on your unit. You breath, relax knowing that your courier service is going to deliver the prototype to you’re rep’s office before 9:30 am Los Angeles time.
Same Day National Courier Service is born. Whether the order is placed through the telephone, internet or mobile, the order details are sent to a dispatcher in NYC. While plugged into the central airline database of flights, the dispatcher determines the package will take 35 minutes to get picked up and dropped off at the JFK airport to make the 8:03 am flight from JFK to LAX. The driver is immediately dispatched, using GPS to avoid traffic and contruction, the package is picked up at exactly 7:15am EST and scanned into the wireless system. Both the sender and receiver are emailed of the pick up. The driver arrives at JFK with seconds to spare before the flight is closed and the package is in the air within 30 minutes of being dropped off at the airport. Both the sender and receiver received email confirmation that the package is on the plane. With a four hour flight, a driver is eagerly waiting on the package at LAX before the chance to pick it up. The package is then rushed to the receiver, with a total time of delivery in less than 6 hours, yet travelled across the third largest country in the universe!
There are many courier services for your to chose from including Chicago Courier Service, but be careful. The turn over rate of courier firms is high, many have very poor on time delivery ratios and pricing is all over the map. When chosing a courier service, ensure consistent positive reviews which can easily be found online. Ask for their on time delivery rate and ask to speak their customers. Find out if they are lying. There are several online firms to check and compare rates.
Filed under Courier and Messenger, Logistics by scott
