Industry Analysis Flashcards
To be done: What were the latest gearing ratios of Runn, Frontt, UPS and FedEx
TBC
Who has UPS performed a tie-up with in India
First Flight Couriers
What major competitor did FedEx acquire in Europe
TNT
Examples of Amazon activity in logistics
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
To be done: What are some of Fedex strategies
TBC
To be done: What are some of UPS strategies
TBC
Define a standard courier service
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
What kind of end users are there for courier services
Financial Services Wholesalers Retailers Manufacturing Construction Agriculture Natural Resources Governmental
Which continent has the highest growth in parcel volume
APAC
According to Mordor Intelligence, what is the expected CAGR of the CEP market from 2018 to 2024
8-10%, rising to $400bn
What is the largest parcel market today by $ value
North America
Who did Fedex announce as a competitor and when
Amazon in september 2019
What is the key driver in courier volumes
E-Commerce
Increasing middle class populations
Smartphone penetration
International trade growth
Where is the greatest level of transformation in the courier industry and what are some of the innovations
Last mile delivery Lockers Pickup points Drones Autonomous Vehicles
What % of total cost do last mile represent
Almost half
Is the CEP market concentrated?
Highly fragmented globally but consolidated at a more local market level. Competition is generally high
What is the trend of growth method for the bigger CEP companies?
Acquisition of businesses, particularly startups and especially those that niche in the last mile or regions where they do not operate
Why is APAC growing faster than other regions
Larger middle class Higher disposable incomes More open levels of international trade (barring recent times with tariffs)
Where is Hermes strongest
Germany
What is the largest Japanese courier
Yamato and Sagawa
Apart from Amazon what other tech startups are moving into logistics
Shyp, PostMates, Uber, Google
DHL key facts
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
How many planes do Fedex have
670
How many employees does Fedex have
425000
How many hubs and facilities do fedex have
5,000+
What disadvantage does Fedex have compared to DHL
use of 3rd party carriers
How many employees do UPS have
481,000 (399,000 in USA)
How many vehicles do UPS have
123,000
How many shipments per day do fedex and ups have
14m Fedex 21m Ups
What CSR claim does UPS have over its competitors
Largest proportion of alternative fuel vehicles (10,000 out of 123,000)
What was the major innovation in courier logistics in the 1990s
GPS tracking
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
What is a freight forwarder?
- Subcontractor to airlines or carriers
- Use specialised services like pallets, parcels or bulky goods transport
What do haulage services do?
- Transport bulky and heavy goods
- Not trackable
- use rail networks
Name the 5 types of courier services
1) Standard Courier service
2) Overnight Service
3) Same day express
4) International
5) Pallet courier service
Name the two types of courier service by business
Business to business
Business to consumer
Name the two types of courier service by destination
Domestic and international
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
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
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.
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%
What is the major growth driver of the CEP market?
E-commerce
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
What is hindering growth of the CEP market in some countries?
- lack of infrastructure
- inefficient technology
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
What is the main driver of increasing efficiency of delivery?
Technology
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
What is the market share of express parcel service in North America?
46%
What is the estimated CEP revenue growth in North America?
5%
What is the CEP market revenue in North America?
60bn EUR
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
What are the two most popular privately owned carriers in Japan?
Sagawa and Yamato
What are the 5 most popular privately owned carriers in China?
SF express ZTO YTO Yunda Best express
What is the most popular privately owned carriers in Europe?
Hermes
How has the ownership of mail companies changed over the last few decades?
Gone from state/government owned to privately owned or partially privatised.
What are the % of the integrators, postal operators and private carriers of the global market share?
Integrators- 37%
Postal operators - 24%
Private - 39%
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
Who are the top 5 major players in the courier industry?
1) DHL
2) UPS
3) Fed Ex
4) Aramex
5) SF Express
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
What is the market share of DHL?
38%
What is the market share of FEDEX?
24%
What is the market share of UPS?
22%
What is the market share of TNT?
5%
What are some key facts of FEDEX?
- 670 planes
- 50,000+ locations worldwide
- 425,000 team members
- 14million shipments per day
What are some key facts of UPS?
123,000 vehicles
481,000 employees
21 million shipments per day
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
