Retailers Utilizing Same Day Delivery and Courier Services

The Courier Service industry has been around for as long as messages needed to move from one person to another.  In fact, the typical Marathon which is 26.2 miles was founded by a courier, or otherwise named messenger, from the Battle of Marathon to Athens.  A Greek soldier, Pheidippides was the runner who ran 26.2 miles non stop to deliver a message, then died.  The marathon was born.

Over the last century, the courier service industry has changed significantly.  In the early 80's, people thought the industry would die to the fax machine, then email.  The fact is, the courier service industry in the United States has grown over 9% per annum and is now over a $60 billion dollar industry, according to US Census Bureau.

Today companies are shipping medicine, organs, critical parts, overstock inventory and time sensitive documents.  As the world has demanded information much more quickly, the desires to have hard products in a timely fashion have also increased.  The cost to carry inventory is becoming expensive and companies are adopting an inventory-less system by moving products on demand for the end user.

Retailers such as Amazon have begun to offer same day delivery services.  Companies like Radio Shack move products from store to store on demand.  Starbucks has their fresh products delivered to stores by means of a courier.  These firms have recognized the excessive cost of operating their own fleet and utilize the services of couriers.

Courier Services specializing in the same day delivery model exist because the big three household carriers do no offer say day delivery.  These firms are UPS, DHL and FedEx.  Because a courier service or same day delivery is considered to be delivered in 24 hours or less, the big three have distribution systems that can not facilitate this level of service.  With over 3,500 courier companies in the United States, according to Courier Magazine, the industry has become very professional and price competitive.

Interestingly, a commodity that is time sensitive has also become price competitive.  This has forced the courier company to adopt technologies to drive economies of scale, reduce operating costs and increase efficiency.  Therefore, a typical courier service today offers the same level of tracking technology as the big three.  Courier software like Xcelerator from Key Software Systems has changed the entire industry.

Since 2000, these technologies have emerged and essentially creating many new opportunities for businesses and consumers.  With airlines starving for cash, holding an existing network to move goods, technology to push efficiencies, competition to hold firms accountable to time and price, the courier industry has finally become in a position to become a household service.

Today many retailers are able to offer same day delivery to their customers.  These retailers are lowering their inventory costs, eliminating the division of their own fleet and able to offer additional value to their consumers.  Companies Naparex have begun to create specific solutions for retailers.  With physical operations in over 50 cities, a company like Naparex can move an envelope or several skids across the country in less than 6 hours.