subject: Postal Services Take A Backseat As Couriers Take Lead [print this page] Courier and postal infrastructure services extend two-way links that help to forge markets, to develop relationships and to get buyers and sellers together. Both these also help to collect revenue, function as an effective distribution channel and enable transactions by fulfilling the requirements or orders.
The express and courier service industry are different from the regular postal industry in their modus operandi. The former operates at a greater speed and ensures complete reliability. The specialty of courier services includes the efficient and seamless coordination with which documents and packages are collected, transported and delivered. The industry has certainly explored and then created a niche market for the prompt exchange of goods and physical communications and transforming it into a billion dollar worldwide business. Courier and postal services can be effectively categorised as logistic and communications service.
In the past decade or so, a number of market forces have prompted postal services to reconsider their role in the global communications market. The twin effects of indirect and direct competition, separation of operator and regulator function, demands of the customer for improved and reliable set of products and services, liberalisation, the introduction of new communication technologies made postal services to bring about changes in their financial and operational strategies that would eventually help them to survive in the competitive market.
The liberalisation of the market has made the postal service far more vulnerable. Postal systems across the world were thus driven to reform their systems owing to:
The rise of the private sector that emerged as a powerful force in both the communications and the transportation sector
The lobbying groups created by the private courier companies were playing an active role in minimising the postal monopoly
The orientation of development and financial agencies such as the IMF and the World Bank which have encouraged such private initiatives
The communications market across the globe has undergone tremendous transformation over the years and more so as a result of the development of the different modes of electronic communications. The parcel sector, on the other hand, has been evolving continuously even in a competitive market. Parcel volumes have gone up sizably since the start of 2000. Private operators have succeeded in maintaining a firm control over the markets.
International couriers have proliferated and managed to occupy a large chunk of the global market. This confirms the strong developmental potential of the service industry. Most of the established courier companies such as DHL courier servicehave managed to create an international presence and are doing exceedingly well. They cater to both the local and the international deliveries and have expanded their client base to include and accommodate individual as well as business needs. The international courier agencies are well supported by the technological and organisational expertise extended by the multinational parent companies. They also offer a host of value added services that have helped to respond to the market forces quickly. Moreover the pricing, discount techniques and the promotional campaigns have all contributed to the success of the courier companies over regular mail services in the current context. They have also acquired competitive advantage by making customs brokerage services a part of their product offerings.
