Oct/Nov 2007

This issue's Sector Report homes in on the same-day courier sector, where operators were quick to embrace mobile technology, and are now making further savings with second-generation systems

Couriers were among the earliest adopters of mobile technology, so it is hardly surprising that they are at the vanguard of new developments to enhance the service they offer clients even further.

The courier business is extremely competitive, so anything that gives you or your drivers an edge can bring a positive return on investment. Customers are becoming increasingly demanding in terms of what they expect, and meeting these demands requires quite a few elements to be in place.

For a start, you need knowledge about your resources: where vehicles are, how close drivers are to completing current deliveries, and who is best positioned to handle the next job. Then there's the all-important communication with the customer.

That's why courier companies were among the first to embrace mobile computer technology. Yes, it can be done the old-fashioned way, with controllers ringing drivers to confirm status and whereabouts, and with paper proof of delivery. But once a business starts to grow, the constraints and costs start to grow with it. With mobile technology, instead of fire-fighting throughout the day the office staff can concentrate on dealing with potential problems as they emerge, rather than merely react once a delivery is late.

'Improving a courier company's productivity depends upon the real-time integration of task, time and location, ' says Colin MacAdam, commercial director at mobile workforce management company Cognito. 'Corporate applications need to be synchronised with field-based information in real time so that the latest data on customers, orders and couriers is always available.'

'Although the enabling technology remains important, it is the courier or despatch worker who is essential to this process, and applications need to be designed with their effectiveness and productivity at the centre,' MacAdam says. 'All too often the critical need to maximise worker acceptance and adoption is ignored in favour of a pure focus on the technological aspects of the solution.' It's essential to find a supplier who understands the importance of design, delivery, training and support, he says.

'When the courier is put at the centre of the mobile workforce management process, customer service levels can be continually improved at the same time as driving company-wide efficiencies.'

Well-designed systems can drive important associated benefits including corporate carbon footprint reduction - something achieved through the elimination of paperwork and avoidance of wasted journeys to customer sites, MacAdam says.

Gaining more benefits requires greater integration, and that's what Cognito is trying to achieve with NetDespatch, a pioneer of online booking and tracking software. NetDespatch's Velocity Unwired is designed to help carriers interact more seamlessly and proactively with their clients. The service links Cognito-powered mobile devices directly to the full range of NetDespatch Web services.

It is not a job despatch system as such. It makes available the same range of Web services that are used by carriers, and allows mobile staff to use wireless technology to arrange and keep track of requests for collections and deliveries of replacements and parts.

One of the primary uses is for service operations that rely on courier deliveries for parts and equipment, as well as collections. Engineers can book parts and arrange delivery to the nearest convenient drop box or depot, using a comprehensive address book facility. In the warehouse, barcode labels are printed automatically, ready for despatch through the chosen carrier. The engineer will be alerted on the mobile device when the item has been despatched and delivered. Collections for returns can be booked and followed through in the same way.

The application is wholly Web-based, offering any time/anywhere access. Back-office support staff, carriers and customers can all access the service to arrange returns, collections and shipments and to track progress.

Going green

The paperless solutions offered by some courier companies have been promoted as providing managerial benefits including real-time proof of delivery and collection, fewer processing errors and so on. Sending the nearest vehicle to the job helps reduce mileage and the cost of that job.

In future, it seem there might be more emphasis on the environmental credentials of paperless operation, certainly for the large companies who are some of the biggest users or courier services. They are also more likely to be concerned about the environmental impact of their activities, including low carbon footprint. Cycles and motorbikes produce less carbon than a diesel-powered van. Some experts predict that companies may well start demanding a carbon footprint calculation for every job.

Courier company Mail Box Express, for example, reports increasing demand from customers for greener solutions. 'As our existing contracts came up for renewal, it became increasingly evident that the ability to provide a courier service that enabled our clients to reduce their carbon footprint significantly was absolutely key to our retaining their business,' explains Darren Shaw, managing director of Mail Box Express. (See panel on previous page.)

Courier Exchange, the online freight exchange service, has introduced Journey Sweeper to match journeys and freight offers on return trips. User enter Return Journey on the site. The Courier Exchange system then calculates the route based on fastest journey time, and generates a wide corridor along the route which picks up all the postcodes of collection points on the route. Any that match with an appropriate collection time are notified to the driver. Notifications of any pick-ups within 15-mile radius of the start time are also notified.

Courier Systems is also piloting a solution to empty running: XtraVan. Its Web site allows courier companies to advertise empty vehicles to other XtraVan users, who can contact them if they have a job to suit it.

Integrated GPS

Courier companies have traditionally focused on scheduling systems, with many relying on cell phone tracking to provide real-time location updates. Given the number of self-employed drivers in the sector, this was a pragmatic approach.

However, the cost of dedicated vehicle tracking has plummeted recently, making it more attractive for this market, and GPS-enabled smartphones and PDAs are nowadays much more widely available, so the courier market is moving towards embracing the greater sophistication this can offer. Same-day courier specialist Courier Systems, for example, just upgraded the mobile devices used by its mainly motorcycle couriers to incorporate GPS. (See panel right.)

Improving the delivery service

Even small courier companies are recognising the need to change their approach to business in a competitive market. Sprinter Couriers, for example, noticed an increasing demand for accurate and up-to-the-minute information regarding delivery times and keeping customers informed about progress, and has found the solution by installing tracking in its vans (see panel, page 19).

Dorset-based Astral Couriers operates same-day UK, European and worldwide express courier services. It has deployed the Pro service from West Lothian-based DBS Software, and says it is now saving time on invoicing and job bookings.

'Our ability to quote and to process recurring jobs has been made easier and more efficient,' says managing director John Regler. DBS, which counts Circle Express as a customer, offers the type of modular applications that are popular with courier companies because they can add functionality as required, whether it be scheduling, hardware, barcode terminals, tracking, digital POD or track and trace.

Online deliveries

Couriers, of course, are closely linked with Web shopping and online order fulfilment, a fact recognised by Skillweb is developing its Order Fulfilment Solution (OFS). This provides an end-to-end process for handling inbound orders, aiming to enable couriers, carriers and distributors to get the best possible value for money from their delivery resources, while at the same time providing better, more flexible services to customers. It can be integrated with Skillweb's track and trace and handling solutions, or be used as a stand-alone module.

OFS handles inbound orders in batches and cross-docks them ready for despatch. Using OFS, couriers, carriers and distributors can receive, handle, sort, route and despatch orders. Delivery routes and workloads can be optimised to ensure maximum efficiency. Deliveries can be prioritised, and a diary function allows advanced planning of work - for instance, when supporting multiple services levels, such as same-day, next-day, Saturday only and evening deliveries.

The solution enables users to receive electronic pre-notified orders, sort these into manifests, manipulate the manifest either manually or using pre-determined business rules, and prepare the manifests for delivery. The system will handle all exceptions, overs, unders, security and size and weight restrictions, and is said to be extremely intuitive for operators to use. Orders can be pulled forward or delayed when demand dictates.

'By providing visibility of the planned fulfilment of customer orders at the start of the track and trace process, we are helping our customers to meet their delivery promises to their customers,' says managing director Chris Wright. 'Further, when things go wrong they are able to rectify the situation quickly and inform the customer.'

Mobile payments

Mobile payments are still a gleam in most courier companies' eyes, since most users have accounts or pay by credit card. However, Courier Exchange has taken the first step into payment authorisation in the field. The company's CX Mobile system is a customised version of the Momote field service application and operates via wireless-enabled PDAs, providing functions such as real-time electronic signature capture and proof of delivery.

Now the company is extending its payment handling system to its mobile platform. It has even been developing a 'widget' (small computer application) that extracts payment information from an accounting system such as Sage, imports it into an XML file and delivers it to the CX system for processing in the field.

Managing director Lyall Cresswell acknowledges that some end users still demand paper copies of key documents. 'We have addressed the need for a hybrid approach that might incorporate electronic PODs alongside printed delivery notes,' he says.

Cresswell says there is still resistance in some corners of the market to mobile applications. 'It could be because of the price of mobile devices,' he speculates, 'or else because of the complexity.' In response, he says the company is considering the possibility of offering a 'lite' version of the mobile application, running on mobile phones or other generic devices rather than more specialist PDAs. 'You might not be able to do signature capture with a phone,' he says, 'but most of the other functionality could be included.'

BOX-OUT ITEM

Case study: Tracking means more deliveries

Sprinter Couriers

Sprinter Couriers handles more than 100 deliveries a week, and has 35 jobs live at any time. The company's David Gill explains: 'We were finding that we spent most of our time contacting our drivers to find out where they were, so that we could give accurate forecasts to our customers. With our operation growing, it was becoming too much of a burden to manage. Instead of being reactive, we needed to take a more proactive approach, providing accurate delivery times to our customers up-front.'

Simply installing a tracking unit on each of its Mercedes-Benz Sprinter vans has provided the solution. The units transmit the GPS position for each van to a central office server. The server decodes the information, which is fed automatically straight into a database and on to the screens of office staff, who can instantly see where their drivers are.

The result: staff no longer have to call the driver to find out when a job has been completed. Instead of having to drive back to the office to get details about their next job, they can be directed automatically to another job within the same locality. 'This not only ensures maximum efficiency, but is also enabling us to increase the number of deliveries that we can do. We are doing an extra five deliveries a day, which is the equivalent of an extra £10,000 per year,' Gill says. 'We not only have a greater control of our fleet, but it means we are also reducing our phone costs.'

BOX-OUT ITEM

Case study: Paperless PODs - an environmental must-have?

Mail Box Express

Reducing the amount of empty running has long been recognised as a key efficiency tool on heavier vehicles, and now the courier sector is starting to take notice, partly in response to pressures to reduce carbon footprints.

Mail Box Express has deployed Codegate's mobilecourier software solution to offer paperless proof of delivery. 'Before Green IT became a real issue for companies, a paperless proof of delivery service was a 'nice-to-have', says managing director Darren Shaw. 'Now that the environment has become a real concern for all organisations, solutions that help companies to reduce their carbon footprint have become a 'must-have'.'

Codegate's mobilecourier software delivers paperless consignment processing, real-time same day delivery tracking, instant proof of delivery, online invoicing and barcode scanning. It interfaces with Mail Box Express's existing management systems and data stores.

Mail Box Express drivers carry Intermec CN3 rugged handheld GPS-enabled mobile computers equipped with satellite navigation capability.

BOX-OUT ITEM

Case study: Integrated tracking - tougher on the streets

Courier Systems

Courier Systems calls itself a carbon-neutral, and reckons it is London's leading independent provider of motorcycle couriers, vans and push bikes, operating a fleet of 250 and having links to another 1,200 vehicles nationwide. The business offers a range of services from same-day nationwide deliveries to niche market technical couriers and film distribution services, and uses DA System's NX scheduling application.

Previously the bikers used separate GPS devices connected by Bluetooth to the handheld devices, but there was a risk of drivers dropping off the screen if the two devices became unpaired, says mobile data specialist Ryzex, which implemented the upgrade. Courier Systems recognised it needed constant visibility of the location and status of its drivers and riders 100 per cent of the time, and its current solution was letting it down, preventing it from giving its customers live tracking.

It switched to Intermec CN3 mobile computers with integrated GPS, Bluetooth and Wi-Fi (802.11g), GPRS and a 1D barcode scanner. The CN3s can capture barcodes, signatures and colour images. 'We needed a device with integrated GPS that was rugged enough to cope with all weather conditions when used on the bikes,' explains managing director Ian Oliver. 'Another important requirement was to capture a variety of data electronically in the field, such as barcodes, signatures and colour photographs.'

BOX-OUT ITEM

Case study: Widening the customer base

Cargo2Go

Having conquered the same-day market, some courier companies are expanding their services into the general delivery market, especially hard-to-crack services such as home deliveries and high-value goods. One of the newest companies in this sector is Cargo2Go, which not only does same-day courier operations, but also offers a same-day and express delivery service for larger consignments.

The company moves everything from an envelope to a parcel to a pallet, carrying high-value and security goods. Prices are not based on weight, and drivers can usually collect within an hour of the time of booking, with no extra charges for evenings and weekends. Cargo2Go also offers services such as the availability of a second man on all deliveries, and has a range of vehicles from rigid trucks to vans.

Cargo2Go, has selected ACI (Advanced Courier Interface) from DA Systems as the control and scheduling system to power its nationwide delivery franchise. It has plans for 52 depots nationwide, each one operating a fleet of vehicles ranging from small vans to articulated vehicles, The company has already set up the infrastructure, and in has two flagship depots in the North West. As new franchise depots are established, each location will be linked to the main Cargo2Go data server, housed at its third-party IT company. DA Systems is working with this company in handling the integration with the company's existing systems, including its Sage accounts package.

Dave Upton, managing director of DA Systems, comments: 'ACI is entirely scalable, so we will be able to bring new franchisees online very quickly as the Cargo2Go network expands across the country.' Lewis Knight, franchise director, adds: 'We need control room software that's easy for our franchise operators to use with minimal training, and a system that we can scale up and develop as new franchise depots open across the country.'

The company also has plans to roll out DA Systems' NX Mobile Data solution across its fleet, which will enable drivers to capture consignment information electronically.