Innovation in the Independent Sector




June 2012
Our Background
Some of the things we do…

  Freight Exchange
  Accreditation & Compliance management
  Transaction management inc ePODs and eBilling
  Subscriber management inc feedback, technology,
  community & peer group advice.
Independent Sector in UK


Approx. 3,000 companies plus owner-
drivers offering:
      sameday,
      overnight parcels & pallets,
      international
      special services ie., refrigerated, chilled,
       'white glove', technical courier,
       hand carry (still!), cross dock.
What’s driving innovation?

   Increasing input costs & price sensitivity
   Need to differentiate in a mature, commoditised market
   Regulation
   Sustainability and CSR initiatives from clients
   Sheer availability of new innovative technologies, at an
    affordable price
   Response to new market opportunities
    e.g., sameday e-commerce

Two key areas for innovation:
 new or improved service offerings
 operational excellence
Case Studies in Innovation



  New service offering - myparcelcentre.com

  Operational enhancement - Delivery Direct

  Regulation drives change - Mission Despatch

  Plus - the coming wave of the mobile apps!
Micro Consolidation Centres

Business: myparcelcentre.com
Grant aided project – Technology Strategy
Board ‘Intelligent Logistics’ competition
Innovation: pilot project for ‘micro consolidation
centre’, with home delivery by electric vehicle
(or customer collects).
Background


Essex County Council was charged with CO2 reduction –
workshops identified consolidation centres for parcels & construction
Basildon: 2,000 B2C parcels / day, 15 – 30% first time fail rate
Abby Couriers – est 1993, £3.5m turnover. Work for all major parcel
companies as well as own clients (sameday, time definite, light haulage)
Deliveries – Consumer
Preferences
   Delivered to home or work                            Delivered to consolidation centre




            A substantial percentage is interested in consolidation centre pick up
                                     399 interviewed people
Actions

Portal built – residents signing up, can use any carrier,
nominate the delivery point.
➪First 3 electric vehicles purchased - 500kg payload
➪Aimed at all categories – shippers, carriers, consumer
➪Discussions with carriers – ‘co-opetition’ so micro
consolidation centre can work with all carriers
➪Micro area – hoping to roll out more centres
➪Charges: £1 to consumer to collect up to 5 parcels or
£2.95 to deliver up to 5 parcels
➪Customer can select timed delivery
How it works?
DELIVERED TO HOME or WORK                             £2.95                           COLLECTION
£1.00


  Consumers                      Consumers                  My Parcel Centre           Consumers
   register for                  order online                  Informs the             then login to
 FREE and get a                 And provide the                Consumers            My Parcel Centre
   Personal                    Retailer / Etailer            When their goods       and picks a delivery
  Membership                     With the local              have arrived by        date and time to suit
       ID                     My Parcel Centre                SMS & Email               their lifestyle
                              address for delivery

                   7 Days A Week
                   7am till Late
                  Abby Couriers are one of the first independent courier services
                  to operate Eco Friendly ELECTRIC POWERED
                  delivery vehicles
Mail & Express Delivery 2012
Operational Enhancement
Dual Purpose Vehicle

Business: Delivery Direct Logistics

Innovation: 4th generation dual compartment
temperature-controlled vehicle

Delivery Direct: Based Taunton, Somerset.

Provide temp controlled & ambient dedicated vehicles

Specialise in food sample and pharmaceuticals

Built in close collaboration with the manufacturer
A truly flexible solution


   Carries combinations of temperature-
    controlled freight from -25ºC to +29ºC in
    either front or rear compartments at the
    same time. Movable bulkheads to
    accommodate different freight sizes
   Huge flexibility to combine jobs without
    compromising critical temperatures
   Reduction in carbon footprint and increase
    in productivity by doing work of two vehicles
    with one
The future


   3 more new vans being built, with further improvements
     ➪ 3 temperature probes in load area and 1 probe mounted externally to show
       ambient temp
     ➪ Connected to live tracking system for live and historical data including temp
       data – proves the cool chain
   Significant investment in innovation has involved some pain as the ‘guinea pig’
   Forthcoming tightening of the temperature chain in the medical and
    pharmaceutical sector puts the company in excellent position for the future
Congestion Charge
Drives Innovation
Business: Mission Despatch
Innovation: Regulation drives
change in fleet choice
   Est 2005, £1.5m turnover, based
    Brentford, West London
   Vans go into London Congestion
    Charge zone every day - £45 a
    week each!
   Cars emitting <100g/km of CO2
    go FREE
   Began evaluation of low carbon
    vehicles – Citroen v Ford Fiesta
Re-balancing Economics


   Reviewed need for small ply-lined vans – found central London work
    could be done in low CO2 car – chose Ford Fiesta <99 g/km

   Saving £450/week with fleet of 10 Fiestas

   Plus – 7.5Tonne fleet – chose Mitsubishi Canter –
    weight saving aluminum chassis – carry load of 3.5T v 2.7T
    for traditional steel chassis

   Conclusion: government regulation drove change in company behaviour by
    re-balancing economics, plus switchover to more innovative vehicle
    manufacturers which offer higher payload capacity and fuel economy.

   http://www.couriers-london.com/
Mobile Apps – poised to
change the sector
Innovation: smart devices, low cost, high levels of
take-up and acceptance means an app for everyone
in the extended supply chain!
Background: recent survey of UK transporters
found that:
75% purchased their current phone within the last
two years
46% have downloaded an “app” on their
smartphone
23% use their mobile phone for social media, such
as Twitter or Facebook
So – irrespective of enterprise solutions, drivers
have ready-made, always on device!
The Impact of the Smartphone
Revolution
 Growing number of apps for Android and iPhone,
 some examples:
      Document scanning and send back to web
      Barcode scanning
      Driver hours and vehicle compliance
      Pick up requests and pricing tools - Courier
       Exchange mobile app - Always on, real time
       availability status, loads sent to drivers based on
       geo-fenced location.
In Conclusion


Innovation is alive and kicking in the independent sector

Lyall Cresswell
Transport Exchange Group
BV2 The Perfume Factory
140 Wales Farm Road
London, W3 6UG

www.transportexchangegroup.com
0844 225 3500

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Mail & Express Delivery 2012

  • 1. Innovation in the Independent Sector June 2012
  • 3. Some of the things we do… Freight Exchange Accreditation & Compliance management Transaction management inc ePODs and eBilling Subscriber management inc feedback, technology, community & peer group advice.
  • 4. Independent Sector in UK Approx. 3,000 companies plus owner- drivers offering:  sameday,  overnight parcels & pallets,  international  special services ie., refrigerated, chilled, 'white glove', technical courier, hand carry (still!), cross dock.
  • 5. What’s driving innovation?  Increasing input costs & price sensitivity  Need to differentiate in a mature, commoditised market  Regulation  Sustainability and CSR initiatives from clients  Sheer availability of new innovative technologies, at an affordable price  Response to new market opportunities e.g., sameday e-commerce Two key areas for innovation:  new or improved service offerings  operational excellence
  • 6. Case Studies in Innovation New service offering - myparcelcentre.com Operational enhancement - Delivery Direct Regulation drives change - Mission Despatch Plus - the coming wave of the mobile apps!
  • 7. Micro Consolidation Centres Business: myparcelcentre.com Grant aided project – Technology Strategy Board ‘Intelligent Logistics’ competition Innovation: pilot project for ‘micro consolidation centre’, with home delivery by electric vehicle (or customer collects).
  • 8. Background Essex County Council was charged with CO2 reduction – workshops identified consolidation centres for parcels & construction Basildon: 2,000 B2C parcels / day, 15 – 30% first time fail rate Abby Couriers – est 1993, £3.5m turnover. Work for all major parcel companies as well as own clients (sameday, time definite, light haulage)
  • 9. Deliveries – Consumer Preferences Delivered to home or work Delivered to consolidation centre A substantial percentage is interested in consolidation centre pick up 399 interviewed people
  • 10. Actions Portal built – residents signing up, can use any carrier, nominate the delivery point. ➪First 3 electric vehicles purchased - 500kg payload ➪Aimed at all categories – shippers, carriers, consumer ➪Discussions with carriers – ‘co-opetition’ so micro consolidation centre can work with all carriers ➪Micro area – hoping to roll out more centres ➪Charges: £1 to consumer to collect up to 5 parcels or £2.95 to deliver up to 5 parcels ➪Customer can select timed delivery
  • 11. How it works? DELIVERED TO HOME or WORK £2.95 COLLECTION £1.00 Consumers Consumers My Parcel Centre Consumers register for order online Informs the then login to FREE and get a And provide the Consumers My Parcel Centre Personal Retailer / Etailer When their goods and picks a delivery Membership With the local have arrived by date and time to suit ID My Parcel Centre SMS & Email their lifestyle address for delivery 7 Days A Week 7am till Late Abby Couriers are one of the first independent courier services to operate Eco Friendly ELECTRIC POWERED delivery vehicles
  • 13. Operational Enhancement Dual Purpose Vehicle Business: Delivery Direct Logistics Innovation: 4th generation dual compartment temperature-controlled vehicle Delivery Direct: Based Taunton, Somerset. Provide temp controlled & ambient dedicated vehicles Specialise in food sample and pharmaceuticals Built in close collaboration with the manufacturer
  • 14. A truly flexible solution  Carries combinations of temperature- controlled freight from -25ºC to +29ºC in either front or rear compartments at the same time. Movable bulkheads to accommodate different freight sizes  Huge flexibility to combine jobs without compromising critical temperatures  Reduction in carbon footprint and increase in productivity by doing work of two vehicles with one
  • 15. The future  3 more new vans being built, with further improvements ➪ 3 temperature probes in load area and 1 probe mounted externally to show ambient temp ➪ Connected to live tracking system for live and historical data including temp data – proves the cool chain  Significant investment in innovation has involved some pain as the ‘guinea pig’  Forthcoming tightening of the temperature chain in the medical and pharmaceutical sector puts the company in excellent position for the future
  • 16. Congestion Charge Drives Innovation Business: Mission Despatch Innovation: Regulation drives change in fleet choice  Est 2005, £1.5m turnover, based Brentford, West London  Vans go into London Congestion Charge zone every day - £45 a week each!  Cars emitting <100g/km of CO2 go FREE  Began evaluation of low carbon vehicles – Citroen v Ford Fiesta
  • 17. Re-balancing Economics  Reviewed need for small ply-lined vans – found central London work could be done in low CO2 car – chose Ford Fiesta <99 g/km  Saving £450/week with fleet of 10 Fiestas  Plus – 7.5Tonne fleet – chose Mitsubishi Canter – weight saving aluminum chassis – carry load of 3.5T v 2.7T for traditional steel chassis  Conclusion: government regulation drove change in company behaviour by re-balancing economics, plus switchover to more innovative vehicle manufacturers which offer higher payload capacity and fuel economy.  http://www.couriers-london.com/
  • 18. Mobile Apps – poised to change the sector Innovation: smart devices, low cost, high levels of take-up and acceptance means an app for everyone in the extended supply chain! Background: recent survey of UK transporters found that: 75% purchased their current phone within the last two years 46% have downloaded an “app” on their smartphone 23% use their mobile phone for social media, such as Twitter or Facebook So – irrespective of enterprise solutions, drivers have ready-made, always on device!
  • 19. The Impact of the Smartphone Revolution Growing number of apps for Android and iPhone, some examples:  Document scanning and send back to web  Barcode scanning  Driver hours and vehicle compliance  Pick up requests and pricing tools - Courier Exchange mobile app - Always on, real time availability status, loads sent to drivers based on geo-fenced location.
  • 20. In Conclusion Innovation is alive and kicking in the independent sector Lyall Cresswell Transport Exchange Group BV2 The Perfume Factory 140 Wales Farm Road London, W3 6UG www.transportexchangegroup.com 0844 225 3500

Editor's Notes