tf102: exclusive survey results parcel`s regional carrier survey results

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tf102: exclusive survey results parcel`s regional carrier survey results
TF102: EXCLUSIVE SURVEY RESULTS
PARCEL’S REGIONAL CARRIER SURVEY
RESULTS UNVEILED
Rob Martinez, DLP, CMDSS, MQC
President & CEO, Shipware, LLC
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Congrats to Survey Winner!
• Ron Dial, Suncoast Surgical and Medical Supply, Tampa FL
.
.
.
.
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Agenda
•
•
•
•
•
Regional Carrier Options
Advantages & Disadvantages
PARCEL’s Shipper Survey Results
Regional Carrier Survey Results
Q&A
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Regional Parcel Carriers
• Offer viable delivery service to UPS, FedEx & USPS
• Service benefits
– Latest pickups, earliest deliveries
– Often faster short-zone transits
– You may be a big fish!
• Cost benefits
–
–
–
–
–
Faster path to achieving discounts
Fewer accessorial charges
Some offer residential delivery no charge
Unique pricing (no minimum charge, flat rating by weight)
Savings of 10-30%
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Regional Carriers (Partial List)
Regional Carrier
Delivery Area
Website
OnTrac
WA, OR, CA, AZ, NV, UT, CO
www.ontrac.com
Eastern Connection
Lone Star Overnight
ME, NH, MA, NY, CT, RI, NJ, DE, MD, PA, VA, OH, KY, IN, www.easternconnection.com
MI, WV
TX, OK, AR, LA, NM
www.lso.com
Spee Dee Delivery Service
NE, SD, ND, MI, IA, WI, IL, MO
www.speedeedelivery.com
Pitt Ohio
www.pittohio.com
TransTek
MN, WI, IL, IN, OH, MI, PA, WV, VA, MD, DE, NJ, CT,
MA, RI, NH, ME, KY
CO, WY, NE
LaserShip
DC, FL, GA, MD, NC, VA, CT, MA, NJ, NY, PA
www.lasership.com
Express Courier International
AL, AR, FL, GA, KY, LA, MS, MO, OK, TN, TX
www.expressdelivers.net
DirectLink
NC, SC, GA, VA
www.directlinkcourier.com
Purolator
Canada
www.purolator.com
Velocity Express
NY Metro, Canada
www.velocityexpress.com
Now Courier
IL, IN, KY, OH
www.nowcourier.com
Courier Express
Norco Delivery Services
FL, GA, SC, NC, TN, KY, AL, MS, OH, IN, PA, VA, UT and www.courierexpress.net
others
CA, AZ, NV
www.norcoovernite.com
Golden State Overnight
CA, AZ, NV
www.gso.com
Unity Courier Service
WA, OR, CA, AZ, NV, UT, CO, ID, NM, TX
www.unitycourier.com
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Regional Carrier Footprints
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PARCEL Shipper’s Survey on Regional Carrier Usage
2012 SURVEY RESULTS UNVEILED
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What best describes your role? I work for a...
30%
29%
28%
25%
20%
14%
15%
10%
13%
12%
7%
6%
5%
0%
manufacturing
retail or
wholesale
educational,
government
or nonprofit
other business 3PL, carrier or
which ships other vendor
parcels
to shippers
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insurance or
financial
institution
Other
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What is your company's annual sales/revenue?
39%
40%
35%
30%
25%
20%
18%
20%
15%
15%
9%
10%
5%
0%
<$25 million
$25-$99 million
$100-$499 million
$500-$1,000 million
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$1+ billion
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Who is your primary parcel carrier?
45%
45%
40%
31%
35%
30%
25%
20%
14%
15%
10%
4%
5%
0%
UPS
FedEx
USPS
3%
2%
Regional carriers UPS SurePost, FedEx SmartPost
or parcel
UPS Basic or UPS
consolidators Mail Innovations
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Do you ship primarily (more than 50%)...
37%
63%
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B2B
B2C
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On average, how many parcels do you ship
MONTHLY?
60%
54%
50%
40%
30%
20%
14%
6%
10%
0%
13%
Under 5,000
5,000-9,999
10,000-24,999
5%
25,000-49,999
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8%
50,000-99,999
100,000+
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Approximate % of all shipments delivered within
250 miles of origin?
30%
27%
24%
25%
19%
20%
15%
12%
10%
8%
10%
5%
0%
1% - 10%
11% - 20%
21% - 30%
31% - 40%
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41% - 50%
More than 50%
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Approximate % of all shipments delivered within
500 miles of origin?
24%
25%
20%
16%
15%
18%
17%
13%
12%
10%
5%
0%
1% - 10%
11% - 20%
21% - 30%
31% - 40%
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41% - 50%
More than 50%
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National zonal analysis
Shipware Packages by Zone
Shipware Packages by Zone Range
25.0%
20.3%
21.2%
20.0%
15.6%
35.6%
15.0%
11.5% 11.4%
11.9%
10.0%
64.4%
Zones 2-5
Zones 6-8
8.1%
5.0%
0.0%
Z2
Z3
Z4
Z5
Z6
Source: Shipware, LLC
Z7
Z8
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Source: Shipware, LLC
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Are you familiar with the services offered by
"Regional Parcel Carriers“?
35%
31%
30%
24%
25%
20%
18%
15%
15%
11%
10%
5%
0%
Extremely Familiar
Very Familiar
Somewhat Familiar
Not Very Familiar
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Not at All Familiar
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Do you use regional carriers today?
30%
Yes
No
70%
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Correlation of Package Volume
& Regional Carrier Usage
79.4%
80.0%
78.3%
71.9%
70.0%
58.3%
60.0%
50.0%
49.1%
53.8%
50.9%
46.2%
41.7%
40.0%
30.0%
Use Regionals
28.1%
20.6%
21.7%
Don't Use Regionals
20.0%
10.0%
0.0%
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Correlation of Company Size (Revenue)
& Regional Carrier Usage
77.3%
80.0%
68.2%
70.0%
62.5%
61.0%
55.9%
60.0%
50.0%
44.1%
39.0%
40.0%
37.5%
31.8%
Use Regionals
Don't Use Regionals
30.0%
22.7%
20.0%
10.0%
0.0%
<$25 million
$25-$99 million
$100-$499
million
$500-$1,000
million
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$1+ billion
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If you use regionals, what percentage of your overall
parcel business is given to regional carriers?
45%
45%
40%
35%
30%
25%
19%
17%
20%
15%
10%
10%
10%
5%
0%
Less than 5%
5% - 15%
16% - 30%
31% - 50%
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More than 50%
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What benefits have you realized?
80%
(Check all that apply)
72%
70%
60%
50%
53%
44%
40%
30%
20%
25%
23%
17%
16%
14%
10%
12%
11%
9%
2%
0%
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Please indicate % of shipments that are
‘Same Day’ vs ‘Next Day’
17.40%
17.84%
Same day
Next day
Other
60.56%
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Has there been a downside?
25%
(Check all that apply)
21%
20%
15%
10%
12%
12%
11%
10%
9%
7%
6%
5%
5%
5%
0%
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How do you segregate shipments for tender to
regionals from nationals?
30%
30%
23%
25%
20%
20%
15%
15%
10%
10%
5%
0%
2%
Manual lookup
per shipment
Batch processing
Least cost
by city/state/ZIP routing software
TMS logic
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We can't; why
we don't use
Other
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If you use regional carriers, what kind of cost
savings are you realizing over FedEx and UPS?
41%
45%
40%
35%
30%
25%
20%
18%
20%
15%
11%
10%
10%
5%
0%
No savings, we
prefer the service
Less than 5%
5% - 15%
16% - 30%
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More than 30%
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Are you open to exploring the use of parcel
regional carriers for your business?
35.7%
64.3%
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Yes
No
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In your mind, what drives the purchasing decision
regarding parcel services? (Please rank the following:)
Category
Most
Important
Very
Important
Important
Not Very
Important
Not at All
Important
Service
47%
38%
11%
3%
0%
Cost
50%
42%
5%
2%
1%
Single-source solution
4%
7%
28%
51%
8%
Convenience
3%
15%
50%
30%
2%
Other
4%
1%
7%
9%
79%
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Regional carriers, what drives the purchasing
decision? (Please rank the following:)
Category
Most
Important
Very
Important
Important
Not Very
Important
Not at All
Important
Cost
50%
17%
33%
0%
0%
Service
25%
33%
8%
17%
17%
Single source solution
8%
8%
25%
8%
50%
Convenience
8%
0%
17%
58%
17%
Specialization, flexibility & custom
programs
8%
42%
17%
17%
17%
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Disconnect between Shipper wants and Carrier
perception of purchasing decisions
Shipper
Carrier
Shipper
Carrier
Important or
Higher
Important or
Higher
Not Very or Not
at All Important
Not Very or Not
at All Important
Service
96%
100%
3%
0%
Cost
97%
67%
3%
33%
Single-source
solution
39%
42%
59%
58%
Convenience
68%
25%
32%
75%
Other
12%
67%
88%
33%
Category
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What % savings would be required to switch
some or all business to a regional carrier?
25%
23%
21%
19%
20%
19%
13%
15%
10%
6%
5%
0%
At least 5%
6% - 10%
11% - 15%
16% - 20%
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21% - 25%
Greater than
25%
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What value added services would you like to see
offered by regional carriers?
90%
82%
80%
70%
60%
50%
40%
36%
40%
30%
18%
20%
9%
7%
10%
0%
Real-time
package
status/tracking
Signature and
appointment
delivery options
Hazardous
materials
COD
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Saturday pickup
or delivery
Other
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“Super regional" alliance…How likely would you be
willing to explore as an alternative to FedEx and UPS?
35%
35%
30%
25%
21%
19%
17%
20%
15%
9%
10%
5%
0%
Definitely
Very
Somewhat
Unlikely
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Not at all
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Shipware, LLC
2012 REGIONAL CARRIER SURVEY
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Shipment/Revenues 2010-2012
Shipments
Revenues
50.0%
50.0%
45.0%
45.0%
40.0%
40.0%
35.0%
35.0%
30.0%
30.0%
2010
25.0%
2010
25.0%
2011
20.0%
2012
2011
20.0%
15.0%
15.0%
10.0%
10.0%
5.0%
5.0%
0.0%
0.0%
< 100,000 100,000 - 250,000 - 500,000 - More than
shipments 250,000 500,000 1,000,000 1,000,000
2012
<$5
million
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$5 - $10 $10 - $20 $20 - $50
million
million
million
>$50
million
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Customer base (Check all that apply)
90.0%
84.6%
84.6%
80.0%
70.0%
61.5%
60.0%
46.1%
50.0%
38.4%
40.0%
30.7%
30.0%
20.0%
10.0%
0.0%
Retail or
Wholesale
Warehouse,
Fulfillment,
Distribution
Manufacturing
Education, Nonprofit,
Government
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Other
Insurance,
Finance
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Volume requirements
70.0%
61.5%
60.0%
50.0%
40.0%
30.0%
15.3%
20.0%
15.3%
7.6%
10.0%
0.0%
0.0%
None
50/day (or less)
51-100/day
101-200/day
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>201/day
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Benefits over nationals (Check Top 3)
70.0%
60.0%
50.0%
40.0%
69%
69%
69%
54%
54%
46%
46%
31%
30.0%
31%
31%
31%
23%
20.0%
8%
10.0%
0.0%
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Pricing compared to discounted FedEx/UPS
35.0%
30.7%
30.0%
23.0%
25.0%
23.0%
20.0%
15.3%
15.0%
10.0%
7.6%
7.6%
5.0%
0.0%
0.0%
Up to 10% less
expensive
11-20% less
expensive
21-30% less
expensive
31-40% less
expensive
> 41% less
expensive
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We are not
less expensive
Other
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Accessorial charges (Check all that apply)
84.6%
90.0%
80.0%
61.5%
70.0%
60.0%
46.1%
50.0%
40.0%
23.0%
30.0%
20.0%
10.0%
0.0%
Fuel surcharge
Oversized packages
Remote area deliveries
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Residential deliveries
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What special services do you offer?
(Check all that apply)
90.0%
84.6%
76.9%
80.0%
69.2%
70.0%
60.0%
53.8%
46.1%
50.0%
40.0%
30.7%
30.0%
20.0%
7.6%
10.0%
0.0%
Real time
tracking
Sig & appt
options
Sat PU/DDL
COD
Sun PU/DDL
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Other
Haz mat
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Carrier-provided manifesting automation
70.0%
61.5%
60.0%
50.0%
40.0%
30.0%
15.3%
20.0%
15.3%
15.3%
10.0%
0.0%
Yes, free to all
customers with
qualifying volume
No, but actively
exploring
No, we have no plans to
offer in the future
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Typical delivery coverage
40.0%
35.7%
35.0%
28.5%
30.0%
25.0%
20.0%
14.2%
15.0%
10.0%
7.1%
7.1%
5.0%
0.0%
0.0%
< 100 miles
101-200 miles
201-300 miles
301-500 miles
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501-1,000 miles
> 1,000 miles
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Driver/courier workforce
46.1%
50.0%
45.0%
40.0%
35.0%
30.0%
23.0%
25.0%
15.3%
20.0%
15.3%
15.0%
10.0%
5.0%
0.0%
Primarily independent
contractors
Primarily employees
A combination, but
more contractors than
employees
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Shipper objections to regional carrier adoption
Shipper Objection
Most
Common
Common
Not Very
Common
Least
Common
Limited delivery area coverage
42%
42%
17%
0%
Afraid to lose FedEx/UPS discounts
42%
42%
17%
0%
National service /desire to single source
33%
42%
25%
0%
Cost too high, savings not enough
33%
8%
33%
25%
Lack of brand recognition
25%
8%
50%
17%
Perception service is sub-standard
17%
25%
8%
50%
Previous poor service experience
8%
8%
17%
67%
Lack of manifesting automation
0%
25%
33%
42%
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Open to cooperative relationships with other
regionals to create a larger (perhaps national)
delivery footprint?
45%
43%
40%
35%
29%
30%
25%
20%
14%
15%
7%
10%
5%
0%
7%
0%
Yes, cooperative
relationships are
already in place
Yes, actively
exploring
cooperative
relationships
Yes, we're open No, we tried but
but have not yet it didn't work
explored
cooperative
relationships
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No, we are not
open to
exploring
cooperative
relationships
Other
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Challenges to “super-regional” network
List of Challenges
Greatest
Very
Challenging Not Very
Least
Challenge Challenging
Challenging Challenge
Developing system for fair revenue
share
50%
8%
8%
17%
17%
Widely varying specializations,
equipment & service standards
33%
17%
0%
17%
33%
Systems integration (reporting,
tracking, invoicing, etc.)
17%
50%
25%
8%
0%
Package custody (pickup and drop
off between networks)
0%
25%
42%
17%
17%
Marketability
0%
0%
25%
42%
33%
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Perspectives on the future: What do you think the
hottest growing SIC or vertical in 2012 and beyond?
50.0%
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
12.5%
12.5%
12.5%
15.0%
12.5%
10.0%
5.0%
0.0%
White glove
operations
E-commerce/Home
delivery
Healthcare
Wholesale
distributors
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Status quo
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Top 3 enhancement areas for 2012
• Internal improvements
– Technology, tracking, c/s & automation
• Service enhancements
–
–
–
–
–
–
Geographic expansion
Same day service
White glove, high touch, on site service
Sunday delivery
Postal consolidation solution
Home delivery specialization
• Make it easier for shippers to offer "free shipping"
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iPad3 or $500 AMEX Gift Card!
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Thank You For Attending!
Please Visit Us in Booth # 219
OTHER PRESENTATIONS THIS WEEK
Tuesday, Oct 23, 10:00 am - 5:00 pm
WS 100 PRECONFERENCE - Inside Parcel Rate Negotiations
Wednesday, Oct 24, 10:00 am – 10:45 am
TF 102 EXCLUSIVE SURVEY RESULTS PARCEL
Regional Carrier Survey Results Unveiled
Thursday, Oct 25, 10:00 am – 10:45 am
TM 207 Advanced Strategies for Negotiating Carrier Agreements
Rob Martinez, MQC, CMDSS
President & CEO
Office 858.538.3359
www.shipware.com
[email protected]
@shipware
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