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Courier, Express, and Parcel Services
Market, Supplier, Risk and
Competitive Intelligence

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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

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Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

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Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

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Measure category performance on 15 key parameters across cost, risk and strategy KPIs

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Abi will answer all Courier, Express, and Parcel Services related
procurement queries with relevant data points

Abi - AI powered digital procurement assistant

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Get up-to-date market and supplier info on Courier, Express, and Parcel Services to help you build

Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

1

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

manage-risk

Assess Supplier Risk based on key risk and compliance parameters

1

Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

2

Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus

discover-supplier

Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography

1

Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

assess-category-perforamnce

Benchmark your category performance against peers and the market

1

Measure category performance on 15 key parameters across cost, risk and strategy KPIs

source-market-indices

Get information on key factors affecting your supply

1

Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Report Coverage

  • Market Trends
  • Technology & Innovation Trends
  • Global Supplier List and Capabilities
  • Mergers and Acquisitions

Market Size

Market Size North America

$123.1 Bn

Market Size Europe

$82.6 Bn

Market Size Asia Pacific

$143.5 Bn

Market Size Middle East - Asia

$8.5 Bn

Table of contents

  1. Courier, Express, and Parcel Services Executive Summary
  2. Global CEP Industry Outlook
  3. Supply Market Outlook
  4. COVID-19 Update and its Impact on Courier Market
  1. Courier, Express, and Parcel Services Market Analysis
  2. Drivers and Constraints for the CEP Industry
  1. Courier, Express, and Parcel Services Regional Market Analysis
  2. North America (US, Canada)
  3. Western Europe (UK, France, Germany, Italy)
  4. APAC (India, China, Australia, New Zealand)
  5. MEA
  1. Courier, Express, and Parcel Services Porter’s Five Forces Analysis
  2. Developed Regions
  3. Emerging Regions
  1. Procurement Best Practices
  2. Courier, Express, and Parcel Services Supplier Analysis
  3. Cost Analysis
  4. Cost Breakdown by Country
  5. Pricing Analysis
  6. Sourcing Model - Key Insights, Pros and Cons, Comparative Analysis
  7. Pricing Model
  8. Negotiating Parameters

 

  1. Innovation-Final Mile Delivery
  2. Global – Innovative Solutions for Last Mile Delivery
  3. Innovation Solution – Case Studies

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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 was valued at $2.3trillion in 2017. On-time delivery plays a crucial role in e-commerce, and e-retailers depend on CEP service providers to fulfill these demands.

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 mail.

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, express, and parcel industry are Deutsche Express, FedEx, UPS, TNT, and Express Yamato Holdings.
  • In APAC and the Middle East, the CEP market is emerging due to e-commerce business and there are numerous service providers. The CEP market is highly fragmented in these 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.
  • Many small and regional players have cost-effective supply chains, due to 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

There are a lot of innovations that have been implemented to make the courier industry more efficient and also sustainable. One of the main areas where there have been new innovations is the final mile delivery. Innovative solutions for last-mile delivery have made a big impact on courier industry trends globally. The report also gives case studies where these solutions have been successfully implemented.

Why You Should Buy This Report

  • The courier industry analysis report gives insight into the global and regional courier industry trends, logistics services trends, drivers and constraints, regional outlook into the 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 for North America (US, Canada), Western Europe (UK, France, Germany, Italy), APAC (India, China, Australia, New Zealand) and MEA regions.
  • It gives a breakdown of the cost structure and gives the best sourcing and pricing models.
  • It also details 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
  • The report gives key supplier profiles and SWOT analysis of players like FedEx, DHL, and UPS.

 

 

Courier, Express, and Parcel Services Market Frequently Asked Questions

  1. Who are the top players in the courier, express, and parcel services market industry?
  2. The top global service providers in the courier, express, and parcel industry are Deutsche Express, FedEx, UPS, TNT, and Express Yamato Holdings.

 

  1. What are the factors driving the growth of the global CEP market?
  2. 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.

 

  1. Are there any constraints that the global CEP market is facing?
  2. 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.

 

  1. How is the CEP service provider maturity across different regions of the globe?
  2. 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.

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