18 June 2003

Increased carrier awareness recorded in the UK parcels market

The 2003 Triangle UK Domestic Parcels Distribution Survey records evidence of increased carrier awareness coupled with a significant increase in recalled sales activity, as measured by telephone calls and sales visits, by almost all the carriers surveyed. And it seems that the Internet has finally arrived in the parcels market with over 90% of decision makers now having access to the Internet at work (from 78% last year) and using it for following the progress of their shipments. The growing internationalisation of the market was evident to respondents surveyed as they recorded, for almost all carriers, an increased range of overseas destinations than last year. But good old-fashioned customer service still needs some care and attention according to the survey, with many carriers recording lower ratings from customers for answering the telephone promptly this year compared to previous years.

This year’s survey of some 300+ customers, each sending out a minimum of 100 parcels a month, also noted some evidence of price hardening in the parcels market both over the last 12 months and in what customers are expecting over the coming year. The reasons for this can only be conjecture, however Triangle’s Head of Research and Consultancy, Robin Parr-Davies, suggests that: “the demise of the old United Carriers (latterly branded as Geodis United Distribution) at the beginning of 2002, coupled with the implementation of Parcelforce’s new strategy for a smaller sized and more service orientated business, gave the industry an opportunity to impose a more realistic pricing environment, and it appears that many operators have taken that opportunity. Only time will tell if they have the collective determination to hold the line as each strives to expand individual capacity at a rate faster than the market growth can accommodate.”

Mr. Parr-Davies concludes that: “the increased sales activity and price actions which came out in the survey were to some extent to be expected with the structural changes going on in the market. At Triangle we expect to see more consolidation still from either further penetration by the global post offices, or more likely, mergers or acquisition within and by the carriers themselves.”

Notes to editor:

The Triangle report (The UK Domestic Parcels Distribution Survey) has been established for 15 years. It is a major industry customer satisfaction survey of 300 + users of parcels carriers that allows carriers to benchmark against their direct competitors and allows carriers to, for example, measure the effectiveness of their marketing and customer service strategies. This 125 page survey has become a required document for the industry which is this year being replicated in the newly emerging UK express pallet distribution sector. The report is available for purchase at a cost of £11,000 + VAT.

Triangle plans to extend the survey across Europe with a French Express Distribution Survey taking place this summer and to Ireland and Germany in 2004.

Triangle Management Services Ltd., founded in 1984 is today the pre-eminent independent specialist management services company within the global mail, express, and logistics sectors. As well as market research surveys, Triangle also offers the following services to clients: Recruitment, Consultancy, Mergers & Acquisitions and Conferences - all focussed on the mail and express industry sectors.

For further information contact: Robin Parr-Davies of Triangle Management Services Ltd. on +44 (0)870 950 7900 or email: RobinP@triangle.eu.com
 

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For further information contact:

Robin Parr-Davies of Triangle Management Services Ltd.
Tel: +44 (0)870 950 7900
Fax: +44 (0)870 950 7910
Email: RobinP@triangle.eu.com
 

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