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Industry Analysis Flashcards

1
Q

To be done: What were the latest gearing ratios of Runn, Frontt, UPS and FedEx

A

TBC

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2
Q

Who has UPS performed a tie-up with in India

A

First Flight Couriers

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3
Q

What major competitor did FedEx acquire in Europe

A

TNT

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4
Q

Examples of Amazon activity in logistics

A

Amazon Hub
Drones
Stake in autonomous truck maker TuSimple
Amazon air fleet of cargo planes and Cincinnati airport depot
Roughly 50 planes today and intent to grow to 70 by 2021

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5
Q

To be done: What are some of Fedex strategies

A

TBC

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6
Q

To be done: What are some of UPS strategies

A

TBC

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7
Q

Define a standard courier service

A

Collect parcel, sort, transfer to the closet depot to the delivery location. Then loaded onto a van to the end location. Takes a few days and is the cheapest

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8
Q

What kind of end users are there for courier services

A 
Financial Services
Wholesalers
Retailers
Manufacturing
Construction
Agriculture
Natural Resources
Governmental
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9
Q

Which continent has the highest growth in parcel volume

A

APAC

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10
Q

According to Mordor Intelligence, what is the expected CAGR of the CEP market from 2018 to 2024

A

8-10%, rising to $400bn

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11
Q

What is the largest parcel market today by $ value

A

North America

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12
Q

Who did Fedex announce as a competitor and when

A

Amazon in september 2019

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13
Q

What is the key driver in courier volumes

A

E-Commerce
Increasing middle class populations
Smartphone penetration
International trade growth

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14
Q

Where is the greatest level of transformation in the courier industry and what are some of the innovations

A 
Last mile delivery
Lockers
Pickup points
Drones
Autonomous Vehicles
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15
Q

What % of total cost do last mile represent

A

Almost half

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16
Q

Is the CEP market concentrated?

A

Highly fragmented globally but consolidated at a more local market level. Competition is generally high

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17
Q

What is the trend of growth method for the bigger CEP companies?

A

Acquisition of businesses, particularly startups and especially those that niche in the last mile or regions where they do not operate

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18
Q

Why is APAC growing faster than other regions

A 
Larger middle class
Higher disposable incomes
More open levels of international trade (barring recent times with tariffs)
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19
Q

Where is Hermes strongest

A

Germany

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20
Q

What is the largest Japanese courier

A

Yamato and Sagawa

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21
Q

Apart from Amazon what other tech startups are moving into logistics

A

Shyp, PostMates, Uber, Google

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22
Q

DHL key facts

A 
547,000 Employees
1.3bn shipments per year
Largest worldwide coverage
Part of Deutsche Post
Only courier who delivers to North Korea
Wholly integrated - no 3rd parties
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23
Q

How many planes do Fedex have

A

670

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24
Q

How many employees does Fedex have

A

425000

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25
How many hubs and facilities do fedex have
5,000+
26
What disadvantage does Fedex have compared to DHL
use of 3rd party carriers
27
How many employees do UPS have
481,000 (399,000 in USA)
28
How many vehicles do UPS have
123,000
29
How many shipments per day do fedex and ups have
14m Fedex 21m Ups
30
What CSR claim does UPS have over its competitors
Largest proportion of alternative fuel vehicles (10,000 out of 123,000)
31
What was the major innovation in courier logistics in the 1990s
GPS tracking
32
What is a carrier? | Give two examples of carriers
- wide delivery network - fleet may include aeroplanes, trucks, vans or ships - often offer an entire supply chain solution for goods Examples: FedX and UPS
33
What is a freight forwarder?
- Subcontractor to airlines or carriers | - Use specialised services like pallets, parcels or bulky goods transport
34
What do haulage services do?
- Transport bulky and heavy goods - Not trackable - use rail networks
35
Name the 5 types of courier services
1) Standard Courier service 2) Overnight Service 3) Same day express 4) International 5) Pallet courier service
36
Name the two types of courier service by business
Business to business | Business to consumer
37
Name the two types of courier service by destination
Domestic and international
38
Name the 4 types of courier service by end user
1) Services inc. banking, financial services and insurance 2) Wholesale and retail trade (inc. e-commerce) 3) Manufacturing, construction and utilities 4) Primary industries - agriculture and other natural resources
39
How do private and public carriers operate differently in the context of an international delivery?
Private carries handle delivery all the way to the recipient in their country of delivery Private only handle the delivery to customs in the country of delivery at which point the destination country takes over
40
How and why is the CEP (courier express parcel) industry growing?
Through the liberalisation of trade through free trade agreements Many countries have free trade zones or special economic zones which provide efficient infrastructure and connectivity to ports. Many logistics companies are capitalising on this and entering into collaborations with bigger market vendors.
41
By 2024 what amount of USD is the Global courier express and parcel market expected to reach? What is the CAGR estimated to be during 2019-2014?
400 billion 8-10%
42
What is the major growth driver of the CEP market?
E-commerce
43
Name 4 causes of impressive growth of the CEP industry in developing countries.
- growth in international trade - rising internet and smartphone penetration - rising middle class populations with larger disposable incomes - improved standard of living
44
What is hindering growth of the CEP market in some countries?
- lack of infrastructure | - inefficient technology
45
Given that the last mile of delivery is the most expensive, what is being done to ensure delivery meets customer expectations?
- integrating the last mile into the existing delivery service - delivery lockers - pickup points - crowdsourced deliveries - drone deliveries - autonomous vehicles
46
What is the main driver of increasing efficiency of delivery?
Technology
47
What are large international CEP companies doing to get a foot hold of smaller regional networks?
- opening regional smart distribution centres | - buying up smaller start up companies to increase their footprint
48
What is the market share of express parcel service in North America?
46%
49
What is the estimated CEP revenue growth in North America?
5%
50
What is the CEP market revenue in North America?
60bn EUR
51
Who is the major contributor to the Asia Pacific CEP market? | What % of the total delivery volume across the world do they represent?
China | 40% worldwide
52
What are the two most popular privately owned carriers in Japan?
Sagawa and Yamato
53
What are the 5 most popular privately owned carriers in China?
``` SF express ZTO YTO Yunda Best express ```
54
What is the most popular privately owned carriers in Europe?
Hermes
55
How has the ownership of mail companies changed over the last few decades?
Gone from state/government owned to privately owned or partially privatised.
56
What are the % of the integrators, postal operators and private carriers of the global market share?
Integrators- 37% Postal operators - 24% Private - 39%
57
What do the integrators mainly focus on? What is the biggest potential strategic opportunity for them?
International traffic in Europe and North America Asia - inparticular China
58
Who are the top 5 major players in the courier industry?
1) DHL 2) UPS 3) Fed Ex 4) Aramex 5) SF Express
59
Who are the top competitors of the 5 major players in the courier industry?
- A1 express - courier express - lasership - last mile logistics - smaller US based start ups such as PostMates, Uber, etc
60
What is the market share of DHL?
38%
61
What is the market share of FEDEX?
24%
62
What is the market share of UPS?
22%
63
What is the market share of TNT?
5%
64
What are some key facts of FEDEX?
- 670 planes - 50,000+ locations worldwide - 425,000 team members - 14million shipments per day
65
What are some key facts of UPS?
123,000 vehicles 481,000 employees 21 million shipments per day
66
Describe the growth of B2C
The B2B segment will lead the courier, express and parcel market share but B2C has highest market growth to become largest customer type by 2022

CIMA SCS (10 decks)

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