Global Express and Small Parcels 2017


The global express parcels industry has undergone a major transformation over the past ten years. In the early 2000s, when Ti published its first Global Express Parcels report, the e-tailing revolution was in its infancy. It was far from certain that many of the major express players, such as UPS, FedEx or DHL, would embrace home delivery due to the high costs involved in the number of undelivered parcels caused by not-at-home end-recipients. Higher margin B2B services, especially in the buoyant economic years in the run up to the Great Recession of 2008, drove innovation in the industry, with huge corporate budgets resulting in initiatives such as electronic proof-of-delivery notes, providing for greater levels of visibility in the supply chain. B2C home delivery companies, often off-shoots of traditional home shopping, catalogue retailers were seen as a separate sector. Today it is hard to convey the extent of the change in management sentiment and operational and technological focus with B2C such an important part of the major players’ thinking and revenues.


No doubt the external demands being placed on express parcels carriers to meet the needs of e-retail customers will continue to drive changes in the industry for many years to come. However, this year’s report will take a different perspective – examining how technological forces have the potential to transform the supply side of the industry from within.

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