CATEGORY

Courier, Express, and Parcel Services

Couriers are usually employed by a company that charges a flat rate to the party using the courier service. Federal Express, UPS, DHL, and the United States Post Office all employ couriers to deliver mail and packages.

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Category Alerts


CATEGORY ALERTS

FedEx to impose peak season surcharge for 2022 starting from September 5, 2022

August 10, 2022
alert level: Medium
CATEGORY ALERTS

FedEx withdrew its fiscal 2023 estimate citing the early Q1 performance and anticipated prolonged operating environment instability

October 03, 2022
alert level: Medium
CATEGORY ALERTS

bpost partners with National Railway Company of Belgium (NMBS/SNCB) to offer parcel locker solutions

October 10, 2022
alert level: Medium

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Courier, Express, and Parcel Services Market Monitoring Dashboard


Supply Demand

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Courier, Express, and Parcel Services Industry Benchmarks


Savings Achieved

(in %)

The average annual savings achieved in Courier, Express, and Parcel Services category is 6.40%

Payment Terms

(in days)

The industry average payment terms in Courier, Express, and Parcel Services category for the current quarter is 33.5 days

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Category Strategy and Flexibility

Engagement Model

Supply Assurance

Sourcing Process

Supplier Type

Pricing Model

Contract Length

SLAs/KPIs

Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk

Sanctions

AMEs

Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

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    Courier, Express, and Parcel Services Suppliers


    1,693
    Total Suppliers
    31
    Diverse Suppliers
    47
    Normalized Supplier Rating
    Courier, Express, and Parcel Services Supplier

    Find the right-fit courier, express, and parcel services supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    DEUTSCHE POST AG
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

    dnb logo

    Up to 3 months

    1 9
    1
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    58

    100
    Robust (1)
    ESG Perfomance (/100)
    Environment
    71
    Social
    52
    Governance
    61
    6 Domains Performance (/100)
    Business behaviour
    55
    Human rights
    56
    Community Environment
    44
    Corporate governance
    65
    Human resources
    52
    Security Scorecard
    93

    Threat indicators
    B
    87
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    A
    100
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    C
    79
    Application Security
    Detecting common website application vulnerbilities
    A
    97
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    A
    99
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    100
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    deutschepost.de
    Industry average
    Adverse Media Appearances
    Environmental Issues
    2
    Workforce Health Safety Issues
    0
    Product Service Issues
    40
    Human Rights Issues
    0
    Production Supply Chain Issues
    12
    Environmental Non Compliance Flags
    54
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    13
    Fraud Issues
    0
    Labor Health Safety Flags
    38
    Regulatory Issues
    13
    Workforce Disputes
    21
    Sanctions
    0
    esg energy transition
    80
    Discrimination Workforce Rights Issues
    17
    esg controversies critical severity
    No

    Courier, Express, and Parcel Services market frequently asked questions


    The top global service providers in the courier, express, and parcel industry are Deutsche Express, FedEx, UPS, TNT, and Express Yamato Holdings.

    The factors responsible for the growth of the courier, express, and parcel CEP market are mentioned as follows. -- E-commerce: The trillion-dollar e-commerce industry depends on CEP service providers to fulfill the demands of their consumers. -- Global import and export activity: There's an increased production of goods and trade expansion as the global economy makes continued shifts towards services delivery. This has resulted in increased imports and exports among the member countries. -- GDP: GDP is an indicator of economic parameters, such as manufacturing, trade, and consumer spending that directly impacts the courier industry.

    As found from the courier service market analysis, the proliferation of technology and digitization is reducing the volume of physical mail thereby affecting the CEP market. Moreover, the rise in fuel prices lead to low-profit margins for service providers.

    The courier, express and parcel market is highly mature in North America and Western Europe, with fierce competition among the top global suppliers. The market is emerging in the APAC region and the Middle East due to the rise of e-commerce business and service providers. The CEP market is highly fragmented in these regions.

    Courier, Express, and Parcel Services market report transcript


    Global CEP Industry Outlook

    • The global CEP industry was valued at approx. $356 billion in 2019. The market was forecasted to grow at about 5.8 percent Y-o-Y to reach $366 billion by 2020.
    • The e-commerce industry is the main driving force for the forecasted period. In 2019, the revenue of the e-commerce sector stood at $3.36 trillion. It was projected to grow at a rate of 23.8 percent by 2020 to reach a value of $4.1trillion.

    Drivers and Constraints for the CEP Industry

    Drivers

    E-commerce

    • The global e-commerce market is expected to generate revenue worth around $5 Tn in 2021.  

    • E-commerce majorly involves business-to-business (B2B) businesses and online shopping.  As per various courier industry news, the industry has witnessed a significant upsurge across the globe over the recent past.

    Real-time Tracking Feature

    • Courier industry players are offering real-time tracking features to the consumers, which wards off the risk of lost parcels and thus loss of consumer loyalty. To assure this, market players are delivering online tracking facilities and SMS services to consumers. 

    • The real-time tracking feature provides insights on when the package is scheduled to arrive. Moreover, this feature offers insights into the number of halts or conveyances the delivery person will make before contacting the consumers. This delivery innovation steps up the convenience of consumers by offering them better transparency of their packages. 

    • Various logistics companies have begun integrating artificial intelligence (AI) solutions such as route planning, intelligent transportation, and demand planning in their workflows.

    Global Import and Export Activity

    • Continued shifts in the global economy toward more services, increased production of high-value and lightweight goods, and expanded trade among the member countries result in increased imports and exports.

    GDP

    •  The CEP market is directly proportional to the GDP of a country. The GDP is an indicator of economic parameters such as manufacturing, trade, and consumer spending, impacting the courier industry directly.

    Constraints

    Digitization

    • Technology and digitization have been reducing the volume of physical mails, thus challenging courier industry players.

    Fuel Rate

    • Fuel price is one of the major costs incurred by service providers.
    • Fluctuating fuel prices impact service providers; if fuel prices go up, profit margins decrease.

    Service Provider Maturity

    • The CEP market is highly mature in North America and Western Europe, with fierce competition among the top global suppliers (DHL, UPS and FedEx). The top global service providers in the courier industry include Deutsche Express, FedEx, UPS, TNT, and Express Yamato Holdings.

    • The CEP market is gaining pace in APAC and the Middle East owing to the booming e-commerce business and presence of numerous service providers. Further, the CEP market is highly fragmented in both the regions.

    Supply Market Outlook

    Global/Regional Outlook

    Increase in M&A and tie-ups

    • Global suppliers are enhancing their presence by having tie-ups and M&A with regional players to use their expertise (on a regional level).
    • FedEx acquired TNT Express in a $4.8 billion deal, assisting to expand its presence and market size in Europe.
    • UPS cooperates with First Flight couriers in India to increase its presence in the Indian courier, express, and parcel market.

    Value-added services

    • Global suppliers have shaped their service offerings based on shippers' requirements. Services such as same-day delivery, door-to-door service, NFO* options, time-critical services, and customized supply chain solutions.

    Tier-2/Local Supplier

    • Global suppliers collaborating with regional suppliers to cater to the domestic needs of CEP in the region (e.g. DHL and Blue Dart collaborate to cater to the international operations of BlueDart).

    • Tier-2 and tier-3 suppliers entering the CEP market to bridge the demand-supply gap for e-commerce companies by handling last-mile delivery.

    • This courier industry analysis shows that several small and regional players have cost-effective supply chains given the advantage of using a 3PL for last-mile delivery rather than having end-to-end services.

     Engagement trends

    • Single sourcing: Shippers with high volumes of domestic and limited international shipments adopt a single-sourcing strategy in order to secure maximum discounts on rates and incentives on volume. In order to mitigate the risk of dependency, shippers can engage with another supplier as a secondary carrier. This is usually for <15 million USD spent.
    • Multiple sourcing: Shippers with significant volumes of international express transactions adopt multiple sourcing strategies in order to secure the regional expertise of respective suppliers. In addition, the risk of supply disruption is also low, with decreased dependency on a primary carrier. However, the scope of securing discounts on high spending is reduced. This is usually for >15 million USD spent.

    Procurement Best Practices

    • This section gives a detailed analysis of the Courier, Express, and Parcel Services Suppliers, Cost Analysis, Cost Breakdown by Country, Pricing Analysis, Sourcing Model - Key Insights, Pros, and Cons, Comparative Analysis

    Pricing Model Negotiation Levers And Contract Practices

    • The negotiation levers are very important for a supplier or buyer in the V to be aware of. They are annual rate discounts, tiered discounts, accessorial charges, and DIM factor.
    • The contract period varies from a minimum of one year to a maximum of five years
    • The contracts are negotiated with a turn around time for payment cycles. The time is 15 to 30 days for global suppliers and 30 to 45 days for regional suppliers. Pricing can be determined either by the volume or the weight of the parcel (usually the higher one)
    •  The major cost components are labor costs and industrial purchases which make up 50 to 70 percent of the total costs 

    Courier, Express, and Parcel Services Market Overview

    Global suppliers of parcel services are enhancing their presence by having tie-ups and M&A with regional players to use their expertise (on a regional level).

    Global suppliers in the courier express parcel market have shaped their service offerings based on shippers’ requirements. Services such as same-day delivery, door-to-door service, NFO* options, time-critical services, and customized supply chain solutions.

    Courier industry trends show that many small and regional players in the courier market have cost-effective supply chains, due to the advantage of using third-party logistics for last-mile delivery rather than having end-to-end services.

    The major cost components are labor and fuel costs, which add up to 40–70 percent of the cost component. Global CEP suppliers go for rent/lease of warehouses/sorting facilities rather than owning them at a regional level, thus reducing fixed costs.

    The price of a Courier, Express, and Parcel services is primarily determined by the volumetric or actual weight of the shipments (whichever is higher), distance to be shipped, and time of delivery. Typically, rates increase with the decrease in transit time.

    Innovation

    Market players have been implementing loads of innovations to achieve greater efficiency and sustainability. One of the main areas of innovation is the final-mile delivery. Innovative solutions for last-mile delivery have made a huge impact on the courier industry globally. Also, the report provides case studies where these solutions have been successfully implemented.

    Why You Should Buy This Report

    • The market report on courier industry analysis offers insights about the global and regional industry trends, logistics services trends, drivers and constraints, regional outlook of APAC, Europe, and North America, and Porter’s five forces analysis of the emerging and developed regions.
    • The regional courier market analysis covers the aspects of market maturity, best practices, and the industry share of North America (US, Canada), Western Europe (UK, France, Germany, Italy), APAC (India, China, Australia, New Zealand) and MEA.
    • It breaks down the cost structure and offers the best sourcing and pricing models.
    • It also presents the aspects of the courier industry such as courier, express and parcel services, logistics and transportation, inland transportation services, courier and parcel, post and parcel, mail and parcel delivery, express parcel and mail, postal services, courier delivery and pick up, last-mile delivery services, same-day delivery, express parcel, overnight delivery, click and collect service, and CEP.
    • Further, this report on courier industry trends provides key supplier profiles and SWOT analysis of players such as FedEx, DHL, and UPS.