The parcel delivery market has come a long way in a decade and as customer demands have increased so have the innovations and service levels of courier companies

DPD van

Over and above factors such as speed, price and reliability, the main driver in the parcel delivery market has always been convenience. Historically this was provided by courier companies coming up with shorter and shorter delivery times so that recipients received their goods more quickly and manufacturers could hold less stock.

In the late 1970s next-day delivery was a breakthrough in a market where two to three days was the norm. But before long this new service became a commodity, so parcel companies developed a broader range of services such as before noon, before 10am, Saturday delivery and of course same-day, with customers paying a higher premium for a faster or more convenient service.

The next phase of growth saw companies such as DPD extending their international reach, using a ‘hub and spoke system’ across Europe. The DPD fleet of 13,500 vehicles operates direct overnight links between 29 international road hubs and 800 depots in 31 European countries. And close links with commercial airlines connect our customers to their customers across the rest of the world.

The other main driver in the past 10 years has been the use of technology to provide customers with better real-time information. As with many other industries, the internet revolutionised our approach to communication. For the first time, senders of parcels were able to log on to track and trace their packages, obtaining those all-important proof of delivery signatures without needing to phone up their courier company.

Next, products such as DPD’s Ship@Ease meant customers could manage their shipping online, printing barcode labels that make deliveries more accurate, monitoring the progress of their shipments through our network and accessing historical trading information at the touch of a button.

DPD’s CEO Dwain McDonald remarks: “Nowadays customers are looking for more flexibility and we expect this trend to continue in the next few years. Constantly evolving technology enables us to meet these changing expectations.”

As we approach the end of the decade, the biggest factor to reshape the courier market is the growth of e-retailing, as busy shoppers swap the frenzy of the high street for the comfort and convenience of buying from home. The surge in home shopping has brought a fresh challenge to the express delivery sector as retailers and parcel companies grapple with the logistical complexities of delivering goods to customers who are not at home to sign for them.

DPD recently made a significant breakthrough in this area, becoming the first UK parcels company to provide home shoppers with a free SMS or email giving them a precise one-hour window in which the driver will arrive.

Known as ‘Predict’ the service means that if the recipient of the SMS knows that they won’t be in to sign for the package, they can text back and arrange for DPD to deliver on a more convenient date. Big name retailers among the 1,500 companies that have already signed up for the service include Dixons Direct, mobile phones giant Three and online gift company iwantoneofthose.com.

So far Predict has delivered a 22% improvement in right first-time deliveries, resulting in far fewer ‘Sorry we missed you’ cards and in consumers having to make fewer journeys to collect packages from parcel depots. Predict has had an especially positive impact on customers with high-value deliveries (such as mobile phones). In this sector, right first-time deliveries are up 30%.

Retailers have been quick to welcome the new service. Vie at Home logistics director Andrew Micklewright says: “Congratulations on the introduction of Predict; good to see you keeping ahead of the competition as usual.”

Sony Computers operations director Andy Barker adds: “The Predict service is a huge leap forward in improving the overall customer experience. The all-day delivery window (the biggest cause of consumer criticism) is dealt with in one go. Brilliant. I think this is called a win-win.”