Please ensure items are boxed
Share this with your friends

Why is the express parcel industry under so much pressure?

By 30th January 2016

More often than not the parcel industry is forgotten for the fantastic service it offers the consumer. Perhaps the biggest way in which the parcel industry has improved in the last decade is in the speed with which it operates. The world we live in is so consumer based that the parcel industry has no choice but to offer express deliveries.

However many logistics consultants fear that the parcel and logistics industry as a whole is going to be unable to keep up with the demand for express delivery. The following article will look into why this issue is becoming so prevalent and if logistic experts have good reason to fear.

E Retailing: 

Express delivery does not necessarily come in this form with Amazon.

Ten years ago online shopping was something most people had done at least once, but other than perhaps E­Bay and Amazon not many companies were selling online. Therefore, most people rarely shopped online at all a decade ago. Fast forward to 2015 and you could argue now that online shopping is more popular than conventional shopping.

Nearly everybody shops online at some point with websites like Amazon being amongst the world’s most popular. Online shopping has been the biggest cause of the change in the parcel industry as there has suddenly become a far bigger demand for parcel delivery.

Express parcel delivery is something that many companies have started to offer, whereas a decade ago it was rarely offered or came at a high premium. Consumers now expect an express delivery to be an option providing a logistical nightmare for companies. Being able to deliver a product in one day brings with it a great array of problems.

E­retailing has only further increased the demand for express delivery and with holiday periods such as Christmas coming up the strain will only get bigger.

Technical difficulties:

The demand for express delivery from consumers has increased greatly in recent years.

Consumers won’t consider this generally, but the technology and logistics needed to deliver a product in an express way (one/two days) is complex. This strain only gets worse when you consider a larger variety of products and a higher bulk of orders. New methods of delivery such as drones are being researched, but this is not available to many companies due to the cost of such research and technology.

Many smaller companies are finding express parcel delivery is too expensive for them to deliver efficiently due to the technical difficulties. In turn, this can lead companies to go to the traditional courier services that increase the bulk demand they have.

Ways the parcel industry can adjust:

The end is not nigh for the parcel industry; They just have to adjust to this new demand to enter an even brighter future than they possibly ever thought. More warehouses across key locations is an important step forward that logistic companies need to take.

More warehouses will allow them to deliver quickly and efficiently from a variety of locations, so Express delivery is available to the majority of customers. A simple way to adjust to this change for the industry is just to accept the fact their costs are going to rise in implementing new ways of dealing with the demand for express delivery.

Conclusion:

The fundamental reason behind logistic experts worrying that the parcel industry is going to face too much pressure is market change. The market shift towards e­retailing has been so great no industry could have predicted it. The logistics industry has started to adjust to this pressure, but time will tell if it can keep up with the vast demand. For more information about Pharos services please call us on 08456 478 479 or email us at info@pharosparcel.co.uk