Courier Cost Review

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Courier Cost Review

  1. 1. Couriers or Small Package Freight Live Meeting Presented by Michael Salih
  2. 2. Industry Overview <ul><li>The freight industry in Australia has long been associated with a complex network of industry participants, couriers, transport companies, airlines, wholesalers, forwarders, all operating in an interdependent manner for both once-off and repeat customers. </li></ul><ul><li>The industry's largest market segment is made of business customers. </li></ul><ul><li>The Courier industry consists of businesses that focus on express door-to-door pick up, transport, and delivery of letters and mail-type articles, usually packages and small parcels. </li></ul><ul><li>The service may involve the use of one or more modes of transport, which may be owned privately or publicly. </li></ul><ul><li>Modes of transportation include: </li></ul><ul><ul><ul><ul><li>Pushbike </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Motorbike </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cars </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Small Vans </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Large Vans </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Planes </li></ul></ul></ul></ul>
  3. 3. Market Segment <ul><li>The major types of Courier services are: </li></ul><ul><li>Intrastate courier services - mainly metro areas </li></ul><ul><li>Interstate courier services </li></ul><ul><li>International courier services </li></ul>
  4. 4. Market Segment <ul><li>Most courier companies are metropolitan-based privately owned businesses. Some family companies own several courier companies </li></ul><ul><li>Consolidation continues with the number of National players diminishing, however, each State still has localized courier services. New companies pop up – eg Sonic Express Sydney </li></ul><ul><li>Major National Courier Companies are: </li></ul><ul><ul><li>Toll Group – Toll Fast, Toll Priority, Couriers Australia etc </li></ul></ul><ul><ul><li>TNT </li></ul></ul><ul><ul><li>DHL </li></ul></ul><ul><ul><li>Australia Post </li></ul></ul><ul><ul><li>MailCall </li></ul></ul><ul><ul><li>Kings </li></ul></ul><ul><ul><li>ANC </li></ul></ul>
  5. 5. About The Category <ul><li>Intrastate Couriers </li></ul><ul><ul><li>Usually involves same day deliveries and can be split into: </li></ul></ul><ul><ul><ul><li>Standard Deliveries - 3 to 4 hours </li></ul></ul></ul><ul><ul><ul><li>Express Deliveries – 2 to 3 hours </li></ul></ul></ul><ul><ul><ul><li>VIP – within 1 to 2 hours </li></ul></ul></ul><ul><ul><li>Depending on parcel size, different vehicles can be used </li></ul></ul><ul><ul><ul><li>Pushbikes for Satchels eg MailCall in Sydney will use pushbikes up to a radius of 10klms </li></ul></ul></ul><ul><ul><ul><li>Parcels can even be up to 500kgs that require a same day delivery, or even 20 tonne same day delivery </li></ul></ul></ul><ul><li>Industries with largest demand for this service are Legal Firms, professional firms, property and Business Services, retail industry, mail order, urgent engineering parts etc </li></ul>
  6. 6. About The Category
  7. 7. About The Category <ul><li>Interstate Couriers </li></ul><ul><ul><li>Usually an overnight service with delivery next day – can be before 9am or before 12pm services. </li></ul></ul><ul><ul><li>There are same day interstate services, but these are very costly. </li></ul></ul><ul><ul><li>Parcels can vary from Satchel bags 3kg, 5kg (Prepaid very economical), or parcels to 25kg or can be larger. Pallets can also be delivered overnight </li></ul></ul><ul><ul><li>Very few Courier Companies can provide an interstate component. Toll Priority and TNT have the largest share of the market to cover Australia Wide. </li></ul></ul>
  8. 8. About The Category <ul><li>International Couriers </li></ul><ul><ul><li>Major Players are: </li></ul></ul><ul><ul><ul><li>DHL </li></ul></ul></ul><ul><ul><ul><li>TNT </li></ul></ul></ul><ul><ul><ul><li>Toll </li></ul></ul></ul><ul><ul><ul><li>UPS </li></ul></ul></ul><ul><ul><li>Again can be satchels, small parcels </li></ul></ul><ul><ul><li>WorldWide services </li></ul></ul><ul><ul><li>Any Business with a Global presence, legal firms, </li></ul></ul>
  9. 9. Opportunities, Target Organisations <ul><li>Legal Firms and Professional services Groups </li></ul><ul><li>Global Companies or companies doing business overseas </li></ul><ul><li>Retail Companies or any company with many branches throughout Australia </li></ul><ul><li>Ideal category size is like many others, ie over $200k but smaller spends can also be looked at, especially in legal firms. eg. legal firm with a spend of $120,000, achieved a savings of 28% - Smaller spends a fee for service is a good way to complete </li></ul><ul><li>Can also target companies that use international mail through the post. </li></ul>
  10. 10. Case Study <ul><li>Mailing House with Warehouse in Sydney, Melbourne and Brisbane </li></ul><ul><li>Spend of $540k and each utilising: </li></ul><ul><ul><li>Intrastate or Local Couriers </li></ul></ul><ul><ul><li>Interstate </li></ul></ul><ul><ul><li>International </li></ul></ul><ul><li>All three warehouses operating independently and each using their own courier company </li></ul><ul><li>Options Report presented a number of offers </li></ul><ul><ul><li>One supplier </li></ul></ul><ul><ul><li>One supplier in each segment </li></ul></ul><ul><ul><li>Incumbent suppliers </li></ul></ul><ul><li>Overall achieved a savings of 24% </li></ul>
  11. 11. Any Questions ? <ul><li>- otherwise call me on 0412 923 188 </li></ul>

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