Courier transport

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AG8151 V2 Article

Courier transport

Author : François BRANCHE

Publication date: October 10, 2006 | Lire en français

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ABSTRACT

 

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AUTHOR

  • François BRANCHE : Deputy Chief Executive Officer of GEODIS - Co-President of the F.N.T.R. - President and CEO of Calberson

 INTRODUCTION

Parcel delivery, one of the major sectors of the freight transport industry, relies on the consolidation and sorting of parcels for delivery to specific areas where distribution takes place. Its operations depend on the coordination of regional consolidation and deconsolidation hubs that radiate out like the spokes of a wheel along the routes connecting them. This complex, networked organizational model is now the defining feature of the industry.

Transport networks are a method of organizing traffic flows that is as old as transportation itself, whether for passengers or goods. New networks continue to emerge, and their development has been proceeding at a steady pace for several decades. The explanation is simple: this organizational model meets the growing demands of customers who need to distribute their products quickly and reliably within a given geographic area.

It should first be noted that not all transportation is organized as a network. The transport of full loads, partial loads, or bulk cargo, as well as tourist passenger transport and school bus services, do not operate as networks but rather on a point-to-point basis, without transshipment. For a network to exist, a set of points must be connected. The concept of a network therefore applies when it is necessary to serve, in a coordinated manner, multiple points within the same territory, whether the area covered is a city, a region, a country, the European Union, the United States, or the entire globe. While networks vary in size, they all follow specific rules of operation and organization. They are particularly prevalent in the courier and express delivery sector, which is experiencing constant growth worldwide and employs sophisticated techniques in both the organization of physical flows and the management of information exchange.

The most significant difference between standard courier and express delivery lies in the guarantee that the promised service will be fulfilled. Express delivery times are expressed in hours or half-days. This guarantee is binding and applies to every shipment. This is the service chosen by all sectors of the economy where urgency and reliability, order frequency, customer dispersion, and the number of products or SKUs are paramount. Traditional courier service, with shipments averaging around 80 kg, is the preferred transport service for mass production, traditional distribution, and large-scale retail.

The purpose of this report is to examine the objectives of these two components of the courier industry, their mechanisms and techniques, and the elements of the entire transportation chain; and to explain the systems used to manage relationships among network members from legal, financial, IT, and marketing perspectives.

A network (courier or express) is technically organized around operational...

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