Courier Express And Parcel Services - Procurement Intelligence
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Procurement Market Intelligence Report

Courier Express and Parcel Services – Procurement Best Practices & Sourcing Strategies

Courier Express and Parcel Services Market – Executive Summary, Market Analysis, Market Monitoring Insights, Procurement Best Practices, Supplier Analysis/Purchasing Process: RFP/RFI Questionnaire, Sustainability Initiatives and Best Practices

1. Executive Summary
1.1. Global CEP Industry Outlook
1.2. Supply–Demand Market Outlook
1.3. Category Opportunities & Risks
1.4. Negotiation Leverage
1.5. Talking Points
1.6. Impact of COVID-19 on CEP
2. Market Analysis
2.1. Regional Market Outlook
2.2. Procurement Centric Five Forces Analysis
3. Market Monitoring Insights
3.1. Cost Structure Analysis
3.2. Commodity Price Forecast
3.3. Cost Analysis and Expected Savings
3.4. Cost Drivers and Cost Structure
4. Procurement Best Practices
4.1. Cost Breakdown by Country
4.2. Sourcing Model
4.3. CEP Pricing Model
4.4. Contract Period and Payment Terms
4.5. Negotiation Practices
5. Supplier Analysis/Purchasing Process: RFP/RFI Questionnaire
5.1. Supplier List
5.2. Supplier Profiles
5.3. CEP: Sample RFP Questions
6. Sustainability Initiatives and Best Practices
6.1. Sustainability Initiatives
6.2. Sustainability Best Practices – Case Studies

What is the current size of the courier, express and parcel services market, and what is the projected growth?


According to the details from ELINT Market Research, the current CEP market estimate is about $443.9 billion. Further projections show the same market to have been further on the rise at a CAGR of 4.59% between 2020 and 2023.


What are the primary drivers behind the growth of the courier, express and parcel services market?


Some factors attributed to solid growth include increasing attention to e-commerce platforms, which highly boosts the need for an effective delivery solution. In addition, the increase in cross-border trade activities continues to grow the market.


Which segments of the courier, express and parcel services market dominate?


The e-commerce segment led the major growth, while the same-day delivery services have seen increased demand across categories, including retail, healthcare, and e-commerce.


Courier, Express and Parcel Services Market Size


Witnessing impressive growth trends in the courier, express, and parcel services market, the global market is estimated at approximately $443.9 billion by 2023. Increasing focus on e-commerce, growth in cross-border trade, and rising demand for faster and more efficient delivery solutions are key drivers aiding the global market. As per the courier, express and parcel procurement services market research report, during 2020 and the anticipated 2023, this is forecasted to increase at a sensational CAGR of 4.59%, a great indicator of stability even in times of economic turmoil as generated by the COVID-19 pandemic. Besides, a CAGR at the projected rate of 4.89% from 2023 to 2028 marks sustained momentum, fuelled by cutting-edge technological developments, shifting consumer preferences, and strategic investments among industry leaders.


In the modern world, the convenience and access that online shopping has brought have seen skyrocketing demand for efficient delivery services and increasing parcel volumes across the globe and for cross-border trade. Moreover, the globalization of markets has given birth to cross-border trade, and it requires a strong logistics and delivery network so that international deals are conducted smoothly. In such a way, streamlined operations become more accessible in such organizations through advanced technologies in automation and artificial intelligence. The structural redefinition of consumer behavior and business operations has remained the core reason behind the growth of the courier, express and parcel services market.


Market Definition


Right from individual couriers to express delivery companies and from parcel service providers to the market players, it is a mix of contributors to the courier, express and parcel services market that forms a unique whole. Also, new trends have started to impact the CEP services landscape. It includes harnessing cutting-edge technologies such as artificial intelligence, blockchain, and autonomous vehicles to ensure they run their operations and improve efficiency unflinchingly.


Courier, Express and Parcel Services Market Drivers


  1. E-commerce Boom: The emerging trend of e-commerce has seen more and more customers purchasing products from online platforms and, in turn, effectively increasing the demand for reliable delivery services.


  1. Globalization: Corporations are going global, so the efficient shipping of goods across borders is rising. Courier services emphasizing speed in the delivery and reliability across borders enable efficient international trade.


Courier, Express and Parcel Services Market Challenges


  1. Last-Mile Deliveries Challenges: This phase from the distribution center to the final customer is full of challenges, be it traffic congestion, inaccuracy in addressing information, or high costs for this delivery.


  1. Security Issues: The more valuables are transported through courier services, the more they are exposed to security issues, such as theft or fraud, tampering, or electronic hacking.


Courier, Express and Parcel Services Market Opportunities


  1. Range of Service Offerings: Diversifying the service offerings beyond the traditional parcel delivery to include warehousing, fulfillment, and value-added services like product assembly and installation goes a long way in differentiating the courier companies and tapping into new incremental revenue streams.


  1. Fundings for Last Mile technologies: Examples of last-mile technology are drones and smart lockers, where autonomous delivery vehicles are also cost-saving and will improve customers’ experience.


Courier, Express and Parcel Services Market Segmentation


  1. Service Type: The research report categorizes the market into courier, parcel, and express services.


  1. End User: Based on end-user, the research report segments the market into retail, E-commerce, healthcare, pharmaceuticals, manufacturing, automotive, and food and beverage.


  1. Delivery Time: The basis of delivery time, the study categorizes into Same-Day Delivery, Next-Day Delivery, and Standard Delivery.


  1. Region: The research report studies and categorizes the regions into Europe, Asia Pacific, North America, Latin America, the Middle East, and Africa.


Regional Outlook of the Courier, Express and Parcel Services Market


The regional dynamics are highly influential in shaping the market trends and competitive landscapes in the courier, express and parcel services market. The new statistics show Asia emerges as a dominating force and commands a large share of the market – close to 40% – after which comes North America with 34% and Europe with 22%. The division is evident in Asia’s burgeoning economic activity and fast-growing e-commerce, driven by the increasing middle class and digitalization. Therefore, the substantive presence of Asia in the CEP market indicates not only its position of economic strength but also its strategic importance within the global trade and logistics network framework.


Supplier power is high to the extent that companies that want to enter the express service market in regions like North America and the European Union (EU) will face tough bargaining, which also infers dominance within the courier, express and parcel services market. On the other hand, supplier power in Asia is moderate, indicating that a more diversified and competitive set of players, including emerging players, competes for the market share. Still, buyer power is low across North America, the EU, and Asia, suggesting limited sway over pricing and service offerings. It, therefore, all underlines the importance of the CEP providers partnering with strategic initiatives and innovating service delivery models to remain competitive.


Impactful Cost Component in the Courier, Express and Parcel Services Market


The stakeholders’ clear understanding of the impact of the cost components in their optimization operations and the ability to maintain competitiveness in the global market landscape is paramount. The cost impacts are due to the different components, including labor in other regions. It shows regional variation whereby labor stands at about 40% of the total costs in North America, while it is at 35% each in the EU and Asia.


Pricing Outlook of the Courier, Express and Parcel Services Market


Several significant trends that will shape some of the dynamics within the industry show up in the pricing outlook of the market, particularly regarding labor. While the EU and Asia slightly surpass the growth to 5-6% of pricing compared to the 2022 estimates, North America expects an increase of 4-5%. These estimates entirely reflect the changing market conditions stemming from parameters such as inflation rates, regulation changes, and demand-supply dynamics.


Contract Period in the Courier, Express and Parcel Services Market


The context of the contract structures within the market are relatively short contract durations, most often at 1–2 years. Herein, the short-term approach allows flexibility in meeting needs arising from market fluctuations, technological changes, and consumer preferences. It, however, calls for proactively engaging strategies to facilitate sustained partnerships and keep from rampantly unpredictable expectations because contracts are renewed every so often.


Emerging Engagement Strategies in the Courier, Express and Parcel Services Market


Going ahead, with changing customer expectations and increasing competitive pressures, emerging engagement strategies that are gaining prominence in the courier, express, and parcel services include holistic approaches that transcend service offerings into value addition, personalized customer experiences, and sustainability initiatives. The same helps differentiate the industry players in a crowded marketplace and, above all, build relationships with clients that have some endurance.


Payment Terms in the Courier, Express and Parcel Services Market


Different approaches are used in the pricing models in the courier, express, and parcel services domain to align the provider’s costs to the service. Another standard model is volumetric/actual weight pricing, where parcels attract dimensional weight in addition to their actual weight. It ensures fair pricing that is space-based for the packages in the transportation phase, and hence, the efficiency of the packaging and transportation process is well-incentivized. Moreover, that would assist in making prices of services predictable and transparent to both service providers and consumers, and hence, the market’s overall efficiency.


Leading Players in the Courier, Express and Parcel Services Market


Majorly active participants in the market include DHL Express, FedEx Corporation, United Parcel Service (UPS), TNT Express, SF Express, Amazon Logistics, and Deutsche Post DHL Group, among others. These key players continuously improve their service offerings, search for efficiency in operations, and adapt to new technologies according to the international trading market needs.

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