Parcel Delivery Companies Must Adjust to Empowered, Digital Consumers, Accenture Study Shows
September 29 2015 - 7:03AM
Business Wire
Digitally connected consumers, looking for lower prices, greater
convenience and a seamless experience in buying, receiving and
returning products, are forcing companies and postal organizations
to rethink traditional parcel delivery methods, research from
Accenture (NYSE:ACN) shows.
Armed with social networks, greater choices and rapid reviews of
companies and services, these savvy consumers, already driving
e-commerce demand, now are forcing increased competition for the
“last mile,” the literal home stretch in delivery service – to the
door, parcel lockers, access points or crowd storage.
“Adding Value to Parcel Delivery” identified more than a dozen
trends impacting parcel delivery service, an industry segment that
is projected to grow 9 percent annually to more than $343 billion
globally by 2020. As postal organizations around the world continue
to face revenue challenges created by dramatically reduced mail
volumes, focusing on competitive parcel delivery products, services
and supply chains will help close the revenue gap.
“Understanding customer needs and creating solutions aimed at
improving their delivery experience is an important aspect of
gaining market share. That relationship can also be leveraged to
sell new services directly to consumers which presents additional
revenue opportunities,” said Brody Buhler, who leads Accenture’s
global post and parcel industry practice. “Successful companies and
postal organizations harness the power of today’s consumer to
remain relevant while capturing increased market share.”
Study findings were presented during Post Expo 2015, the
international exhibition and conference for the world’s postal,
courier and express industries.
“Consumer convenience and cost reduction have been the primary
objectives guiding the change,” Buhler said. “Traditional postal
organizations, already locked in competition with private delivery
companies now are facing the possibility of companies like Amazon
creating their own delivery supply chains combined with the very
real threat of share economy start-ups like Uber. New models and
consumer expectations driven by m-commerce will radically change
the delivery landscape”
Study Highlights
The study also determined that B2C will continue to grow in
significance across geographies over the next five years. By 2020,
B2C will surpass B2B in terms of parcel volumes in Asia and in
North America. B2C will continue to grow revenue at an estimated 6
percent per year in North America, 5 percent per year in Western
Europe and nearly 14 percent per year in Asia-Pacific between 2015
and 2020.
This shift from B2B to B2C is also leading to high volatility in
demand. The United Kingdom saw a 39 percent increase in parcels and
an 86 percent increase in cross-border shipments on Cyber Monday in
one year. China experienced a similar spike on Singles Day in 2014,
when 323 million shipments were delivered, more than 10 times
greater than the average daily shipping volume.
The research also shows that firms around the world are scaling
up to meet future consumer demand, expanding capacity and
modernizing networks in the parcel delivery business:
- DHL is investing EUR 750 million to
build Germany’s largest parcel processing plant in Hessen
- FedEx Ground will spend $1.2 billion to
finance 70 expansion projects
- Yamato Transport Co. has allocated 140
billion yen on its processing warehouse near Tokyo’s Haneda
airport)
- Australia Post is doubling capacity at
Sydney and Melbourne parcel facilities as part of a AUD 2 billion
investment.
These investments are being made to remain competitive in the
face of new entrants in last-mile delivery and with the
understanding that delivery experience is a key variable for
customer satisfaction. The study determined that 80 percent of
retailers see a positive and measureable impact on customer
satisfaction by offering multiple delivery options to shoppers and
77 percent of this group aim to increase investment in delivery
over the next two years.
Consumers now have many more choices and options for delivery
services. Successful courier-express-parcel (CEP) companies will
focus on the recipient and deliver on consumers’ wish lists:
- Delivery control: Consumers are
demanding a better last mile service that keeps them in control of
how, when and where their parcels are delivered.
- Delivery locations: As choices broaden,
consumers want new delivery options such as lockers or pickup
locations that enable a secure, 24x7 and sometimes anonymous
delivery option.
- Delivery timing: While there is
significant investment in speed, CEP companies should focus on
giving consumers a range of delivery times (often at different
price points) that provides flexibility.
Methodology
“Adding Value to Parcel Delivery” is a comprehensive analysis of
an industry segment with the objective of assessing historic
performance, identifying future trends and determining shareholder
value drivers. This study examined the global Courier, Express and
Parcel (CEP) market size and growth, including B2B and B2C
segments, domestic versus international shipping as well as
overnight and non-day, and time definite products segments under
150 pounds or 70 kilograms. The study looked at current and new
players in this market, including global integrators, postal
organizations, regional players, shared economy and crowdsourcing
actors as well as retailers moving downstream. Sources included
public information, paid and proprietary primary and secondary
research, internal and external subject matter expert interviews
and extensive market and financial analysis.
Learn more about Accenture’s work with postal organizations and
Delivering Public Service for the Future.
About Accenture
Accenture is a global management consulting, technology services
and outsourcing company, with more than 358,000 people serving
clients in more than 120 countries. Combining unparalleled
experience, comprehensive capabilities across all industries and
business functions, and extensive research on the world’s most
successful companies, Accenture collaborates with clients to help
them become high-performance businesses and governments. The
company generated net revenues of US$31.0 billion for the fiscal
year ended Aug. 31, 2015. Its home page is
www.accenture.com.
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AccentureJoanne Veto, + 1 703-947-2590+ 1 703-963-4212
(mobile)joanne.m.veto@accenture.com
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