POSTAL AND COURIER TRAINING RUNNING A COURIER

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Expectations tree 2/21/2017 Ianstar Ltd. Excellence. Delivered 4

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Course objectives General objective:
To instill knowledge and skills on the fundamental aspects of running a courier business or operations (in PCK)

Specific objectives:
After a successful completion of the course, participants should be able to:
Understand the basic concepts of courier business
Understand and manage contemporary issues concerning planning and operation of a courier business.
Understand the challenges, options and solutions in courier business
The participants will also share and learn from each other’s experiences. 2/21/2017 5 Ianstar Ltd. Excellence. Delivered

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Course topics Overview of the courier industry.
Basic concepts of courier business.
Marketing and selling courier services.
Courier operations support functions.
Performance measurement in a courier business
Economic and social aspects of the courier industry in Kenya.
Challenges of running a courier business in Kenya.
Strategies to address challenges in the courier industry. 2/21/2017 Ianstar Ltd. Excellence. Delivered 6

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Topic 1: Overview of the courier industry Definition: Courier service
Courier service involves conveyance of documents, parcels and distribution or parcels, catalogues, publications or any other material that needs to be delivered.
It is a premium service. On the other hand, Postal services are basic services. 2/21/2017 Ianstar Ltd. Excellence. Delivered 7

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Introduction cont’d Conveyance is by use of:
Motorcycles
Delivery vans
Delivery trucks
Passenger buses
Bicycles
Foot/ ground couriers
Aircrafts 2/21/2017 Ianstar Ltd. Excellence. Delivered 8

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Introduction cont’d... Definition: Courier business
(courier service provider)
An organization which offers courier services to customers in exchange for money.
A courier business can be publicly owned, or privately owned- PCK and private operators 2/21/2017 Ianstar Ltd. Excellence. Delivered 9

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The Regulator - Communications Authority of Kenya Mandate:
Licensing, promoting development of standards, monitoring operator activities, protect consumers, manage competition.
Maintains active licensee register.
Prepares annual industry reports. 10 2/21/2017 Ianstar Ltd. Excellence. Delivered

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Relevant legislation Kenya Information and Communications Act 1998. Amendments in 2009 and 2013
Postal and Courier services regulations, 2010
Universal access and services regulations, 2010
The Kenya Constitution, 2010
Guidelines for postal and courier licensees on promotion of e- commerce
Courier License conditions 11 2/21/2017 Ianstar Ltd. Excellence. Delivered

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License conditions Compliance
Revocation
Type of operation and annual fees.
Compliance returns- courier revenue stream.
USF fees.
Service standards.
Customs.
Safety and security. 12 2/21/2017 Ianstar Ltd. Excellence. Delivered

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License conditions contd… Tariffs and reviews
Interconnection
Business permits
Tax obligations 13 2/21/2017 Ianstar Ltd. Excellence. Delivered

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Competitive services Offered by both public and private courier operators
Courier services –customized; overnight, same day, express, premium, within the hour
Distribution services- publications, magazines, trade journals, invoices
Electronic mail services 14 2/21/2017 Ianstar Ltd. Excellence. Delivered

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Courier services There are a variety of service levels and names in the market, including
Within the hour courier service
Same day courier service
Overnight service
D+ 2, D+3; extended delivery services
Export courier services
Import courier services
In- house courier services 2/21/2017 Ianstar Ltd. Excellence. Delivered 15

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Services exclusive to PCK Acceptance and delivery of postal articles weighing up to 350 grams.
Provision of private letter-boxes and bags.
Printing and issuance of postage stamps.
Financial remittances. 16 2/21/2017 Ianstar Ltd. Excellence. Delivered

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Postal and Courier Industry stakeholders Definition:Stakeholders: Groups that have an interest in the company. Without these groups the company ceases to exist. They provide resources. Not all stakeholders are equal. 17 2/21/2017 Ianstar Ltd. Excellence. Delivered

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Stakeholders contd’ It is important for managers and owners of postal and courier businesses to understand, manage, control, influence, monitor, advise, cooperate and comply to stakeholder interests and expectations for smooth business operations. 2/21/2017 Ianstar Ltd. Excellence. Delivered 18

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i. Internal stakeholders Employees
Managers
Owners/ Shareholders 19 2/21/2017 Ianstar Ltd. Excellence. Delivered

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ii. External stakeholders Customers- existing and potential customers
Government- CA, KRA, UPU, PAPU
Competitors
Industry groups- CIAK, KEPSA, KIFWA
Professional associations- HR, Accounting, CS, MSK, Legal
Suppliers and partners
Financiers and investors
Communities- local, national, general public
Trade unions 20 2/21/2017 Ianstar Ltd. Excellence. Delivered

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Critical factors in courier service provision Reliability and flexibility
Routing and work flow chart
Security
Information- track and trace
Fleet and transport services
Price of provided services 2/21/2017 Ianstar Ltd. Excellence. Delivered 21

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Critical factors contd’ Service Level Agreement
Customer service line, desk, department or call center
Courier waybill, consignment note, collection or delivery note.
Working time calculation sheet 2/21/2017 Ianstar Ltd. Excellence. Delivered 22

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Trends in the postal courier service industry Competition:

Own customer delivery systems
Increasing number of local courier/ city courier service operators
Entry and expansion of international companies 2/21/2017 Ianstar Ltd. Excellence. Delivered 23

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Trends contd’ 2. Client needs
Value added services
Quality improvement
Guaranteed delivery - speed - low cost Price sensitivity 2/21/2017 Ianstar Ltd. Excellence. Delivered 24

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Trends contd’ 3. Regulatory framework
Market structure clustered- public, national or international operator
Unclear requirements of universal service
Disproportional price regulation- PCK price controls vs. private operators notification of price changes
Access to network by competitors- interconnection contract filing 2/21/2017 Ianstar Ltd. Excellence. Delivered 25

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Trends contd’ 4. Technologies

E-correspondence
E-commerce 2/21/2017 Ianstar Ltd. Excellence. Delivered 26

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Participants’ activity 1 Name the top 6 courier service providers in Kenya. (Class discussion)

Give 3 reasons as to why the above companies are the best courier service providers in Kenya i.e. the distinguishing features from the other operators. ( 30 minutes) 2/21/2017 Ianstar Ltd. Excellence. Delivered 27

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Topic 2: Basic concepts of courier business operations Elements of a courier operations strategy
Operational Network
Courier hub
Interconnection
Manifest
Way bill
Dead weight limit
Performance standards 2/21/2017 Ianstar Ltd. Excellence. Delivered 28

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i. Elements of courier a operations strategy 29

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ii. Operational Network Courier service providers use a hub and spoke network model.
The branches form the spokes in the network.
A large-sized player owns and operates from many branches and service points whereas a smaller player has a lower number of branches. 2/21/2017 Ianstar Ltd. Excellence. Delivered 30

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Operational network contd’ The branch networks could be owned or outsourced i.e. a pharmacy acting as a drop of point.

Investments in a network are required to be made in terms of facilities, equipment, labor, fleet and information technology. 2/21/2017 Ianstar Ltd. Excellence. Delivered 31

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Operational network contd’ At the highest level, the performance of a courier network should be evaluated along two dimensions:

Meeting customer needs- delivering value
The cost of meeting customer needs- to ensure profitability 2/21/2017 Ianstar Ltd. Excellence. Delivered 32

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Operational network contd’ Measures influenced by the structure of the network include:
Lead times
Service variety- routes and schedules
Customer experience- quality service levels
Courier business visibility- marketing tool
Service costs- capacity vs. utilization rates 2/21/2017 Ianstar Ltd. Excellence. Delivered 33

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Hub and spoke model illustrated 2/21/2017 Ianstar Ltd. Excellence. Delivered 34

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Hub and Spoke model To better understand the hub-and-spoke system, imagine an intricate bicycle wheel, with the hub as the strategic center of the network, and the spokes radiating out to connect it with remote points.
The functionality of the hubs and spokes differ according to the company size and operations.
It differs from point-to-point or direct-route operations. 2/21/2017 Ianstar Ltd. Excellence. Delivered 35

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Characteristics of the hub- and- spoke network model Detailed planning and coordination required
Cut-off Times along with limited sorting time
Labour-intensive environment
Highly sensitive (wrong sorting generates multiple problems)
Hub continuous operation
Capacity management during peak & non-peak hours 2/21/2017 Ianstar Ltd. Excellence. Delivered 36

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Advantages of the Hub-and-Spoke network model Provision of express courier services at minimum cost
Efficient sorting: small number of sorting centers
Time accuracy
Easy incorporation of new points in the network
Reduction of long-distance transportation 2/21/2017 Ianstar Ltd. Excellence. Delivered 37

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iii. Courier Hub The central part of the wheel where the spokes come together
Strategically located facility where a courier company's major facilities and operations are housed, and where most of its scheduled fleet originate from or terminate at. 2/21/2017 Ianstar Ltd. Excellence. Delivered 38

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iv. Interconnection A tie- up of an operational nature between courier businesses.
The tie- ups help in extending the geographical reach of a courier business.
These tie- ups are largely on a non- exclusive basis.
An example: tie- ups between international operators and national operators. 2/21/2017 Ianstar Ltd. Excellence. Delivered 39

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v. Manifest A document that serves as a tally- sheet, giving a detailed summary of all courier way bills issued by a courier company for a particular vehicle, vessel or journey.

It contains all the details of the number of courier items exchanged. 2/21/2017 Ianstar Ltd. Excellence. Delivered 40

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vi. Way bill It is a document used by a courier company giving details and instructions relating to the courier item in reference.
It shows the name of the consignor, consignee, point of origin, point of destination, courier item type, weight, volume, number of packages, charges paid, details of the courier staff who collected, time and date of collection, along with special instructions e.g. hold at destination, deliver duty paid 2/21/2017 Ianstar Ltd. Excellence. Delivered 41

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Way bill contd’ Some companies use alternative documents for the same purpose e.g. consignment notes, collection notes and dispatch notes. (Engage PCK for PCK documentation names)
The consignees sign on the waybill upon receipt of the courier item, indicating the name of recipient, date and time of receipt. This piece of information is known as the proof of delivery. 2/21/2017 Ianstar Ltd. Excellence. Delivered 42

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vii Dead weight limit Dead weight limit: 30kg per package.
Every country or area has its own size and weight limits. 2/21/2017 Ianstar Ltd. Excellence. Delivered 43

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viii. Performance standards They are the observable behaviors and actions which explain how the job is to be done, plus the results that are expected for satisfactory job performance. 2/21/2017 Ianstar Ltd. Excellence. Delivered 44

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Standards contd’ PCK and courier companies are required to comply with the CA defined operational standards, industry standards as well as customized standards as per signed SLAs with customers.
Key factor: Quality of Service Standards
National and International delivery standards range from D, D+1…D+5
Monitoring and tracking 45

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Participant activity 2 Define the following:
Courier tariff
Work calculation sheets 2/21/2017 Ianstar Ltd. Excellence. Delivered 46

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End to end courier service management Courier item pickup
Data management
Packaging
Document digitization, filing and recovery
Return management
Courier item preparation for routing and distribution
Warehousing, classification and distribution
Supervision and booking coordination
Receipting
Reporting. 2/21/2017 Ianstar Ltd. Excellence. Delivered 47

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Topic 3. Marketing courier services It is geared towards creating awareness about the existence of the courier company. Marketers design and provide information about the courier company for access by customers.
Marketing activities include development of content, design of the message and decisions on the appropriate channels to use- TV, print, Radio, billboards, online, social networks, internet and mobile marketing 2/21/2017 Ianstar Ltd. Excellence. Delivered 48

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Marketing contd’ Communication programs are designed for specific market segments; target marketing
On the other hand, sales/ selling is concerned with revenue generation and return on investment 2/21/2017 Ianstar Ltd. Excellence. Delivered 49

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Focus areas in marketing courier services Promotional and CSR activities- awareness creation, remind and persuade clients to buy from your company
Market share, customer loyalty, image
Pricing- discrimination strategy; different prices for courier services; different geographical areas, customers, transit and conveyance times, categories of services. Relationship: cost vs. price 2/21/2017 Ianstar Ltd. Excellence. Delivered 50

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Marketing focus areas contd’ Service areas- capabilities, reliability, timeliness, convenience, value adds,
Data collection, analysis, presentation, mining and warehousing and application of market research results.
Targets vs. Return on Investment 2/21/2017 Ianstar Ltd. Excellence. Delivered 51

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Elements of a successful courier services marketing strategy Target market
Superior brand
Quality services
Professional staff
Promotions
Convenience
Customer focused process
Competitive pricing
Business intelligence 2/21/2017 Ianstar Ltd. Excellence. Delivered 52

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Sales – process activities Prospecting and lead generation.
Determining customer needs.
Selecting a sales approach- influence customers to switch courier service providers.
Presentation on the benefits and value of the company’s courier services to the customer.
Closing deals 53

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Sales process cont’d Demand forecasting
Sales team retention- compensation of sales personnel; remuneration, incentives,
Training, tools and effective monitoring 54

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Sales contd’ Good marketing produces good sales
The selling process calls for use of competent and skilled sales staff. Competitive team compensation is key.
Key account management responsibilities: 2/21/2017 Ianstar Ltd. Excellence. Delivered 55

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Benefits of key account management Targeted relationship management for clients with volumes
Provide clients with a single point of contact; transact seamlessly
Helps build relevant expertise to serve the customers. 2/21/2017 Ianstar Ltd. Excellence. Delivered 56

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Competition Can have both positive and negative effect’s on the courier company’s market opportunity
Competitors use different strategies and it is impossible to deal with a competitor whose competitive strategies you do not know.
The courier industry has more than 120 operators; each company has at least 119 competitors! 57

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Competitor analysis Name and brand.
Location and network.
Size and number of years in operation.
Ownership; local, multi national, foreign.
Services offered and Service standards.
Costs and Prices.
Revenue turnover.
Strengths and weaknesses of competitors. 58

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Types of customers for courier services Individuals- Retail customers
Corporate customers- profit making and not- for- profit organizations
Government
Terms of service: Cash or credit/ accounts 2/21/2017 Ianstar Ltd. Excellence. Delivered 59

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Customer expectations On time, in full and error free collections and deliveries.
Proper handling and storage of courier items
Convenience and accessibility- office locations and outlets, network capacity and routing
Accurate documentation- waybills, invoices, quotations, packing lists, delivery notes.
Timely updates- tracking; different platforms. 60

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Customer expectations contd… 6. Prompt resolution of queries, complaints and discrepancies.
Competitive prices and alternative payment platforms.
Safety and security of their letters and parcels, courier service provider premises, staff, fleet and systems.
Compliant service providers- risk, claims 61

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Customer expectations contd… 10. Continuous engagement- pre, transaction and post-transaction.
11. Innovations and adaptations to changing demands and expectations. End to end solutions
Fair and ethical trade practices 62

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Customer touch points Touch points are contact points through which customers and businesses engage to exchange information, provide service, or handle transactions.
Website- static or interactive
Telephone- fixed& mobile lines
Emails
Direct visits
Mobile and desktop applications- e portals,
Social media
CRM systems 63

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Participant activity 3 In groups of 10, identify the challenges experienced by courier companies in marketing and selling their services.
Discussion time: 30 minutes
Presentation time: 30 minutes 2/21/2017 Ianstar Ltd. Excellence. Delivered 64

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Topic 4: Courier operations support functions Their performance implies excellence or failure in the operations function.
Customer service- customer experience management; real time customer updates, continuous communication and prompt resolution of queries and complaints impact on customer satisfaction.
Note: Customers expect to be able to reach a customer service line, desk, executive or call center 24/7 2/21/2017 Ianstar Ltd. Excellence. Delivered 65

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Confidence check Rate your courier firm’s customer experience;
1. Poor 2. Average 3. Excellent 4. Awesome
(up to 49%) (50- 75%) (76%- 90%) (above 90%) ( 2/21/2017 66 Ianstar Ltd. Excellence. Delivered

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Support functions contd… 2. Customs clearance – staff experience, finance procedures and controls, internal system capabilities e.g. manifesting, IDF, entry declaration and port operations are fundamental aspects of on time customs clearance.
3. Procurement- timely acquisition of equipment, supplies, premises, goods, services and works that facilitate smooth operations 67

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What tracking information do customers expect to see? The complete courier item journey 68

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Support functions contd… 4. Warehouse or hub management – security, proper handling and storage of courier items in transit or awaiting delivery. Goods should be delivered in good condition. 69

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Support functions contd… 5. Human resources- organizational structure, individual and organizational culture, employee skills, knowledge, abilities and experience in provision of courier services have an impact on the service levels offered to customers.
Employee welfare management Key areas Work hours, rest time/ off days, leave, training, motivation and compensation. Happy employees work harder! 70

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Human capital management Principal focus areas:
Recruitment.
Induction and orientation.
Performance measurement – systems, tools and metrics, best practice and benchmarking
Termination of employment (firing process).
Disciplinary procedure. 71

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Contd’ Grievance procedure
Compensation and benefits policy.
Information technology in HR
External Stakeholder management- trade unions, labour law enforcement 72

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Challenges in human capital management 1. Informal human resource management processes.
2. Lack of qualified staff from training institutions i.e. college leavers- there is no training school for specialized courier knowledge and skills training.
3. Poor retention levels; Limited skilled workforce resulting to head hunting, high staff turnovers, rotation between companies, sharing of cross company information. 2/21/2017 73 Ianstar Ltd. Excellence. Delivered

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Contd’ 4. Inadequate training and development of employees in courier firms. The Public operator and large courier players invest in training their staff locally and internationally and in- house training. Smaller players do not train their employees at all.
CA and AFRALTI have been supporting postal courier workforce training since 2015 74

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Contd’ 5. Postal crime- mail pilferage, mail violation and mail theft.
6. Productivity management 75

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Combating postal crime CCTV and 24 hour guarding of courier facilities, with controlled access into operational areas.
Metal detectors and screening of courier items, customers and employees.
Warehouse and fleet management systems and procedures.
Secure and secluded storage areas for high value courier items.
Staff training and accurate record keeping 76

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Support functions contd’ 6. Quality management
Involves development and implementation of policies, processes and procedures for planning and execution of courier services that consistently meet customer requirements and enhance satisfaction.
Key areas are staff involvement and continuous improvement. 2/21/2017 Ianstar Ltd. Excellence. Delivered 77

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Contd’ 7. Information technology- capabilities, creativity and innovation in providing solutions to customers’ courier service needs e.g. automation of sorting centers, optimizing routing and scheduling of fleet in the light of poor road infrastructure, heavy traffic congestion, poor national addressing system and high customer expectations. 2/21/2017 Ianstar Ltd. Excellence. Delivered 78

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Contd’ 8. Health and safety policy development and implementation
Guideline: Objectives, people and their duties, systems and procedures, safety training, tools and equipment, safety wear, safe facilities, first aid and emergency procedures, risk assessment, insurance covers and maintenance of records. 2/21/2017 Ianstar Ltd. Excellence. Delivered 79

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Contd’ 9. Finance function- cost management
It involves planning and controlling of the budget for the courier business.
Cost management activities include: estimation, allocation and control of costs in running the courier business. Expenses should be documented and tracked and actual costs must be compared with predicted costs to reduce chances of going over budget. 2/21/2017 Ianstar Ltd. Excellence. Delivered 80

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Cost management contd… Three stages to successful cost management: 81

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Types of costs Facility acquisition, leasing or construction.
Facility furnishing and maintenance.
Machinery, tools, equipment acquisition and maintenance costs.
Fleet acquisition, leasing and maintenance costs.
Utility and energy costs.
License fees and levies.
Labour costs.
Information systems. 2/21/2017 Ianstar Ltd. Excellence. Delivered 82

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Topic 5: Performance measurement What are performance measures?
A performance measure is a numeric description of a business’ work and the results of that work.
Performance measures are based on data, and tell a story about whether a business or activity is achieving its objectives and if progress is being made toward attaining policy or organizational goals. 2/21/2017 Ianstar Ltd. Excellence. Delivered 83

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Contd’ Performance measures demonstrate how well the courier business is doing its job of meeting customer needs, goals and expectations of the courier service.
Measuring performance is a way to gauge the impacts of the courier organization’s decision making process
Performance measures aim to answer questions about whether the performance of the courier business is getting better or worse over time.
There are financial and non- financial performance measures. 2/21/2017 Ianstar Ltd. Excellence. Delivered 84

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Financial performance measures Financial performance measures are used to monitor the inflows (revenue) and outflows (costs) and the overall management of money in the
business. They can be used to assess the overall performance of the business.
These measures focus on information available from the Statement of profit/loss and Statement of financial position of a business. 2/21/2017 Ianstar Ltd. Excellence. Delivered 85

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Performance measurement Performance measurement is the monitoring of budgets or targets against actual results to establish how well the business and it's employees are functioning as a whole and as individuals.
Performance measurements can relate to short
term objectives (e.g. cost control) or long term
measures (e.g. customer satisfaction). 2/21/2017 Ianstar Ltd. Excellence. Delivered 86

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Suitable performance measures include: Strategic Measurement of the overall profitability of the courier business and/or the return made on investing surplus cash. Return on investment (ROI), return on sales produced monthly
Tactical Comparison of the actual costs and revenues with the budgeted costs and revenues for the courier business. Actual profit compared to budget produced monthly. 2/21/2017 Ianstar Ltd. Excellence. Delivered 87

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Contd’ 3. Operational
Measurement of day to day targets such as meeting collection and delivery requirements and lead times, volumes handled, meeting sales targets, capacity utilization, number of missed collections and deliveries, number of customer complaints, turnaround times at the hub, branches and outlets, departure times and arrival times, etc 2/21/2017 Ianstar Ltd. Excellence. Delivered 88

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Critical success factors Critical success factors (CSFs) are the essential areas of
the courier business that must be performed well if the mission, objectives and goals of the business are to be
achieved.
CSFs act as a common point of reference to measure the success of the courier business and they help everyone in the team to know exactly what they need to do to ensure the courier business achieves its goals. 2/21/2017 Ianstar Ltd. Excellence. Delivered 89

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CSFs contd’ The following table shows a number of performance indicators grouped against CSFs.
Each courier organization will formulate its own, specific KPIs which best suit its business. 2/21/2017 Ianstar Ltd. Excellence. Delivered 90

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CSFs and KPIs 2/21/2017 Ianstar Ltd. Excellence. Delivered 91

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CSFs and KPIs contd’ 2/21/2017 Ianstar Ltd. Excellence. Delivered 92

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Measuring profitability Three ratios may be used:
Return on capital employed (ROCE) =
operating profit ÷ (noncurrent liabilities + total equity) %
Return on sales (ROS) = operating profit ÷ revenue %
Gross margin = gross profit ÷ revenue %
Operating profit is profit before interest and tax and after non-operational overheads have been charged. 2/21/2017 Ianstar Ltd. Excellence. Delivered 93

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Measuring liquidity A business can be profitable but at the same time encounter cash flow problems. Cash at the bank and profit are not the same thing.
Current ratio= current assets / current liabilities 2/21/2017 Ianstar Ltd. Excellence. Delivered 94

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Contd’ The ratio measures the company's ability to meet its short term liabilities due within one year with the current assets that should be converted into cash within one year. A ratio in excess of 1 is desirable but the expected ratio varies depending on the organization. 2/21/2017 Ianstar Ltd. Excellence. Delivered 95

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Contd’ A decrease in the ratio year on year or a figure that is below the industry average could indicate liquidity problems.
The company should take steps to improve liquidity, e.g. by paying payables as they fall due or by better management of receivables in order to convert the money owed into cash more efficiently. 2/21/2017 Ianstar Ltd. Excellence. Delivered 96

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Contd’ Equally a high ratio could indicate that any surplus cash is not being made efficient use of. Cash does not provide a return so it should be
reinvested in the business. 2/21/2017 Ianstar Ltd. Excellence. Delivered 97

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Measuring risk It is also important for a company to manage its risk. How 'geared' a business is can be calculated to assess financial risk. Gearing indicates how well a business will be able to meet its long term debts.
Capital gearing (leverage): This ratio calculates the relationship between borrowed capital (debt) & owner's capital (equity): Capital gearing = noncurrent liabilities (debt) ÷ ordinary shareholders funds (equity) % or Capital gearing = noncurrent liabilities (debt) ÷ (noncurrent liabilities + ordinary shareholders funds (debt + equity)) % 2/21/2017 Ianstar Ltd. Excellence. Delivered 98

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Measuring risk contd’ The level of gearing indicates how much a business relies on long term debt finance. The higher the percentage, the higher the level of risk as any debt finance must be paid back through interest and capital repayments. There is a legal obligation to make these payments.
Repayment of equity finance is through dividends and there is no legal obligation to make these payments to shareholders. There is no 'correct' level of gearing but if debt exceeds equity then gearing is too high. 2/21/2017 Ianstar Ltd. Excellence. Delivered 99

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Trends in technology in the courier industry Globally:
Amazons delivery drone service
Mole solutions’ freight pipeline system designed to move goods automatically in customized capsules
Orion by UPS- route optimization for UPS drivers and fuel saving.
Doddle’s push notifications when parcels arrive at a closer store to the customer.
Uber taxis entry into the parcel business 100

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Trends in technology in the courier industry contd… Closer home:
GPRS- Maps and physical addresses applications- enabling fast and efficient collections and delivery.
Barcode scanning- real time data capture that reduces duplication of work, increases accuracy and ease of access.
Desktop applications and online e- portals where customers can place their bookings at the comfort of their offices or home. 101

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Topic 6: Economic and social aspects of the courier industry The courier industry in Kenya drives economic and social progress:
It facilitates trade by providing access to domestic and international markets
It improves business operations by offering fast, timely and efficient collections and deliveries
It provides employment.
It is a source of income to +100 investors 2/21/2017 Ianstar Ltd. Excellence. Delivered 102

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Contd’ 5. It facilitates communication and connects people, countries and cultures.
6. Contributes to sustainable development by generating economic growth and increasing tax revenues
7. Facilitates the delivery of emergency and humanitarian aid relief ;Swift delivery of medical supplies 2/21/2017 Ianstar Ltd. Excellence. Delivered 103

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7. Challenges of running a courier business in Kenya Poor road infrastructure.
Lack of a national addressing system.
High operating costs.
Traffic congestion in the cities.
Vehicle routing and scheduling problems.
Inadequate training of staff.
Cut throat competition; Low profit margins, etc
Safety and security 2/21/2017 Ianstar Ltd. Excellence. Delivered 104

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Prospects for the courier industry in Kenya Despite these challenges, there are many prospects and opportunities that would abound should the industry/ courier operators overcome these challenges. 2/21/2017 Ianstar Ltd. Excellence. Delivered 105

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Participant activity 4 In groups of 10, identify the prospects and opportunities for the courier operators in Kenya. 2/21/2017 Ianstar Ltd. Excellence. Delivered 106

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8. Strategic options for the courier businesses Introduction of new service offering e.g. night deliveries, weekend shopping.
Vertical integration- take on activities done by suppliers or customers up and down the chain e.g. clearing and forwarding, warehousing, distribution.
Geographical expansion into new markets- locally, regionally and internationally.
Diversification- venturing into other business sectors e.g. real estate, freight forwarding, transport 2/21/2017 Ianstar Ltd. Excellence. Delivered 107

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Strategies contd’ Embracing IT capabilities and IT innovations. e.g. alternative service payment platforms, mobile tracking, in- hub bar code scanning,
Resourcing strategies
Ability to pull a range of the courier firm’s resources and competences together both inside the organization and in the wider value chain to create a competitive advantage e.g. low prices. 2/21/2017 Ianstar Ltd. Excellence. Delivered 108

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Strategies contd’ 7. InterconnectionTo increase domestic, regional and international network coverage, hence create additional revenue generating streams and optimal capacity utilization.
8. Horizontal integration-based on growth through the acquisition of one or more similar firms e.g. international courier operator acquiring a domestic operator 2/21/2017 Ianstar Ltd. Excellence. Delivered 109

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In conclusion A look back at the topics covered indicate that the courier industry is growing in significance and changing in the face of challenges and drivers of change.
There are issues that are achieving greater importance – sustainability, congestion, governance and management.
As the courier industry grows and courier services achieve greater importance, conventional approaches, to running the courier businesses that focus on a narrow range of factors, have to be replaced by more nuanced analysis and solutions. 2/21/2017 Ianstar Ltd. Excellence. Delivered 110

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Expectations Tree Review 2/21/2017 www.acadri.org www.ianstar.co.ke 111

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Participant feedback and T.E. Participants to provide feedback on the course and suggest any other areas of interest in training.
** Fill in the training evaluation form.
Vote of thanks

THE END!!! 2/21/2017 www.acadri.org www.ianstar.co.ke 112

POSTAL AND COURIER TRAINING RUNNING A COURIER

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POSTAL AND COURIER TRAINING RUNNING A COURIER

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