The increase in international trade and the enactment of economic partnerships such as free trade agreements are increasing and diversifying the transportation needs of companies. Carriers, and in particular parcel delivery companies, must therefore expand their distribution network. Through alliances, acquisitions or internal developments, they are able to cover the national territory first and then the European zone. This leads to a situation where 10 companies account for almost 60% of the turnover in 2018 of the industry.
Yet, almost all (92%) of the companies in the parcel delivery industry are small businesses (less than 250 employees). But companies with more than 250 employees generate more than 72% of the industry’s revenue in France. Smaller companies are more likely to go bankrupt or be acquired by larger groups. Postal groups are perfect examples of the industry’s concentration. The opening of the postal market to competition has pushed the players concerned to diversify their activities, in particular by developing their parcel business. They then naturally turned to the parcel delivery market via the creation or acquisition of subsidiaries: DPD (single parcel delivery) and Chronopost (express delivery) for the La Poste Group, DHL (express delivery) for Deutsche Post in Germany…
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At the same time, polarization is also happening geographically, with a high concentration of activity in the Paris region. Particularly well connected to other regions, the Ile-de-France region accounts for nearly a quarter of the industry’s workforce (2018). The majority of the Greater Paris metropolitan area’s flows are inbound: shipments account for one-third, deliveries two-thirds, which creates imbalances with the other regions. The Auvergne-Rhône-Alpes and New Aquitaine regions also capture national and international flows thanks to their borders with Switzerland, Italy or Spain.
Parcel delivery is therefore a booming industry that has been structured around the transport needs of the shipping industry. It has also become centered around a few major players (American or European) who hold a monopoly on the market. Faced with this tough competition, the development of an extensive national and international network is essential, especially with the increasing speed of global flows. As customer requirements become more and more demanding, express delivery is gradually overtaking conventional delivery services. The concept of speed, which is at the heart of parcel delivery services, requires a special organization based on the construction of an optimized infrastructure network.
Source: https://t-tees.com
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